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Regulator investigating possible standards breach at supported housing provider
England’s Regulator of Social Housing (RSH) is investigating a possible breach of its standards at a supported housing provider.
New Roots Ltd, which owns and manages 1,782 homes in Birmingham, was added to the RSH’s ‘gradings under review’ list yesterday.
“The regulator is currently investigating a matter which may impact on [New Roots’] compliance with both the governance and financial viability element of the Governance and Financial Viability Standard,” the RSH said in a press statement.
It did not give any more details about the potential issues.
New Roots does not currently have a published regulatory grading as it previously had less than 1,000 homes – but a judgement is set to be published once the investigation has concluded.
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According to the RSH’s Statistical Data Return (SDR), New Roots increased its stock by 34% between 2017/18 and 2018/19.
Over the same period, the number of vacant units owned by the provider increased from 18 to 267.
All of its units are non-self-contained supported housing, while the SDR indicates that between 2017/18 and 2018/19 it began charging £100.46 a week in average service charges on top of the £123.44 net rent.
The average weekly supported housing social rent for non-self-contained units in England is £103.53.
New Roots’ financial statement for the year ending in 31 August 2018 – which the Charity Commission recorded as being filed 113 days late – shows it took £12.2m in housing benefit, accounting for nearly all its income – up from £6.6m the previous year.
It was founded in 1996 and registered with the RSH in November 2014.
The association’s website describes its mission as seeking “to provide direct access accommodation for non-priority homeless adults in Birmingham and surrounding areas” and adds that it mainly focuses on supporting single adults, mostly men, of whom 72% have mental health needs.
Direct access accommodation allows individuals to self-refer to a provider and usually sees tenants move in straight away.
The grading under review lists providers registered with the RSH that are currently being investigated for issues which may result in them being found non-compliant with governance and financial viability standards.
New Roots is currently the only provider on the list.
It did not respond to requests for comment.
