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Housing association downgraded following health and safety failings
A 12,000-home housing association has been downgraded by the regulator following an investigation into health and safety issues.
GreenSquare Group, which owns stock across Gloucestershire, Oxfordshire and Wiltshire, has been handed a ‘G2’ grading for governance by the Regulator of Social Housing (RSH) today.
The judgement indicates that GreenSquare still complies with the regulator’s requirements but “needs to improve some aspects of its governance arrangements”.
It comes after a regulatory notice published in March revealed that the landlord had breached the RSH’s Home Standard for failing to implement “a large number of high priority actions arising from fire risk assessments”, as well as gas and lift safety concerns.
Today’s regulatory judgement said that an in-depth assessment (IDA) found “a clear lack of leadership around health and safety issues” at GreenSquare.
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It added: “The seriousness of the matters identified and the historic lack of oversight on health and safety evidenced during the IDA has led us to conclude that there were material governance weaknesses.”
GreenSquare “has committed to undertake a full governance and risk review”, the judgement said. But it added that “material issues of relevance to the regulator were not communicated in a timely or proactive way during the course of the IDA”.
The association has maintained its ‘V2’ regulatory grading for financial viability, issued in November 2017.
Ruth Cooke was made permanent chief executive of GreenSquare last month, after joining as interim boss in February.
Commenting on today’s judgement, Ms Cooke said: “The change to our governance grading is of course no surprise following the regulatory notice issued earlier this year.
“We have already apologised unreservedly for past failings in relation to health and safety, but I am quite clear that saying sorry is not enough. What’s most important is ensuring that previous mistakes are not repeated.
“The regulator has noted the work we have done, and are doing, in this respect and the assurance we have given.”
The RSH has also issued a governance downgrade for 1,350-home Devon-based housing association Cornerstone.
Cornerstone has been downgraded from G1 to G2. Its viability assessment remained unchanged at V1.
The regulatory judgement said: “On the basis of an IDA, we have concluded that Cornerstone needs to improve board oversight of its strategic financial risk management.
“In particular, we lack assurance that the board has used stress testing to fully inform its business planning and treasury management strategy.”
The regulator has retained 6,200-home Acis Group’s V2 rating after receiving assurances over the provider’s financial viability.
But it did note that the landlord, which has homes in Lincolnshire, South Yorkshire, Nottinghamshire and Derbyshire, had been exposed to a wider range of market conditions that had to be considered in its financial assessment.
The regulator said: “Acis continues to have material financial risks which it needs to manage.
“It is reliant on income generated from non-social housing lettings activities, through its sales programme and student housing business, to maintain covenant compliance.
“This exposes Acis to a wider range of market conditions, and means that the provider is therefore susceptible to the crystallisation of additional risks.”
As well as the judgements, the RSH withdrew regulatory notices for Creative Support, Raven Housing Trust and Vivid Housing.
It also published regulatory judgements for Accent Group, Grand Union Housing Group, Halton Housing Trust, Irwell Valley Housing Association and Richmond Housing Partnership, which all retained G1, V1 gradings.
Interim regulatory judgements for Peabody and Catalyst, which are both going through mergers, left their gradings unchanged at G1, V2 and G1, V1 respectively.
