You are viewing 1 of your 1 free articles
Regulator launches probe into London landlord over governance issue
A 5,000-home London-based landlord is being investigated by the English regulator over its compliance with the governance standard.
Octavia Housing, which currently has a G1/V2 rating, has today been placed on the Regulator of Social Housing’s (RSH) gradings under review list.
The outcome of the RSH’s investigation will be confirmed in a regulatory judgement, it said.
In December, Octavia was downgraded by credit ratings agency S&P to a ‘BBB+’. The agency said it believed Octavia had “limited capacity to mitigate the effects of cost overruns, high inflation, rising interest rates and the government-imposed rent cap”.
S&P also flagged that the association’s finance team had seen a “high turnover over the past few years, reducing accountability and the ability to adequately execute plans”.
READ MORE
Octavia, which is based in Kensington and Chelsea, manages homes for rent and shared ownership across central and west London.
In 2021, the landlord retained its G1/V2 rating following an in-depth assessment, but the regulator warned that an “increase in debt and significant building safety costs have negatively impacted [Octavia’s] financial performance”.
In its last reported full-year to March 2022, the landlord reported a £1.7m surplus on turnover of £60.9m.
Sandra Skeete, chief executive at Octavia, said: “The Regulator of Social Housing has today published notification that it has placed Octavia Housing on its grading under review list as it reviews compliance with its Governance and Financial Viability Standard.
“While we are disappointed with this decision, we welcome the opportunity to address the concerns raised and will offer our full and transparent cooperation throughout the investigation.”
She added: “We are fully committed to taking the necessary steps to continue to ensure strong and effective governance that enables us to deliver on our strategic goals and ensure that we continue to provide quality services to our residents.”
Sign up for our regulation and legal newsletter
Already have an account? Click here to manage your newsletters
