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Two small landlords face the threat of being de-registered for being in “serious and persistent breach” of the Regulator of Social Housing’s (RSH) standards.
The RSH has told Hertfordshire-based St Andrews Community Housing Association and London-based Kinsman that it plans to strike them off the register of social housing providers.
The regulator published enforcement notices for the two organisations in February, urging them to tackle their failures.
Both landlords own and manage social homes under arrangements which “give material controls and all beneficial interest to a third party”, the regulator said.
As a result, the RSH said it “continues to have serious concerns about each provider’s financial viability and weak governance arrangements”.
St Andrews owns four social homes and Kinsman has 31 properties.
Both were linked to claims about homes intended for social housing being sold on the open market in 2018.
The regulator launched an investigation into the organisations that year after it emerged they were connected to Pathfinder, a housing association accused by councils of using “sham transactions” to violate agreements to provide affordable housing.
Kinsman was later found non-compliant for selling homes meant for social housing at full market value.
St Andrews was ruled non-compliant after failing “to act with due diligence in entering into its property acquisitions and activities”.
A few months later, Kinsman was also found in breach of the consumer standard over a failure to address fire safety issues for nearly a year after being made aware of them.
In its assessment today, the English regulator said both landlords “do not have adequate control over their social housing assets, putting them at undue risk, which means they are unable to sustain their financial viability on an ongoing basis as required”.
Jonathan Walters, the RSH’s deputy chief executive, said: “We have used a range of regulatory and enforcement powers to make St Andrews and Kinsman address their issues, but they have been unable or unwilling to do so.
“As a result, we have notified each provider of our intention to remove them from the register of social housing providers.”
The landlords are able to make representations before the regulator makes a final decision.
St Andrews and Kinsman have been contacted for comment.
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