English regulator reveals judgements for 13 social landlords

“However, we have concluded that it needs to improve some aspects of its governance arrangements to support continued compliance.

“Hexagon needs to strengthen the accuracy of the organisation’s data to ensure that it is adequate to support the oversight and management of risks to key areas of service delivery, assurance of compliance and to support its decision-making,” the regulator added. 

The judgement comes after Hexagon self-referred to the RSH for landlord health and safety, rents and repairs following the appointment of a new chief executive. 

However, data inaccuracies were also found in the association’s regulatory returns. 

“In addition, weaknesses in complaint-handling have been highlighted by the Housing Ombudsman,” according to the judgement.

Peaks & Plains was upgraded from G2 to G1 and retained its V1 grade for financial viability. 

This comes after the landlord was upgraded from a non-compliant G3 to a compliant grade of G2 in September 2021.

According to the regulator: “Based on evidence gained from an in-depth assessment, the regulator has assurance that Peaks & Plains has further strengthened its governance arrangements. 

“The board has refreshed its membership and now has a more strategic focus including enhanced oversight of the delivery of the organisation’s strategic plans and priorities. 

“It has improved the management of risks, including those relating to compliance with loan covenants. 

“Peaks & Plains has also implemented a series of improvements to the quality of its data and has strengthened its reporting and oversight of compliance with its health and safety responsibilities.”

Black Country Housing and Eden Housing, which were downgraded from V1 to V2, join a host of landlords being downgraded amid significant financial pressures facing the sector. 

Fourteen housing associations were downgraded for financial viability in December. 

It followed 19 housing associations being downgraded for financial viability in mid November, with another 15 at the end of the same month.  

Sheron Carter, CEO of Hexagon said: “Hexagon accepts the G2 compliant regrade, as we acknowledge the need for improvement and are already making vital changes.  

“We made the self-referral to the regulator having identified data quality issues. We have undertaken a data quality review, and we are currently automating key processes.

“We have made considerable progress reducing a backlog of fire risk assessment safety works and electrical installation inspections. 

“The remaining fire risk assessment works largely fall into the low-medium risk category.

“A new complaints investigation team has been appointed and trained to provide robust independent assessment of all complaints and response within published timeframes. 

“We anticipate residents will see an improvement in complaints handling and first-time resolution in 2023.” 

Simon Fanshawe, chair of the Hexagon’s board, said: “The board has approved a new corporate strategy centred on core services to customers. 

“Within the first two years of this plan, the priority will be to turn around under-performing services, update our systems, improve the scope and quality of our data, make better use of our assets, complete our committed development programme, and improve our overall financial health in the face of the serious challenges the whole sector is facing.

“We will work closely with the regulator to keep our progress under review as we work towards a return to G1.”