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Regulatory judgement: London landlord rated non-compliant and downgraded to G3

A north London housing association has been rated non-compliant with the governance element of an economic standard after it was unable to assure the English regulator that it is managing its risks and business planning in an effective way. 

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Picture: Getty
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A London-based provider has been downgraded by the English regulator #UKhousing

In a regulatory judgement published today by the Regulator of Social Housing (RSH), Christian Action (Enfield) Housing Association (CAHA) was rated non-compliant and has been downgraded to G3 status.

CAHA was founded in 1966 as a local, church-based response to the need for affordable housing for rent and is motivated motivated by Christian concern to meet housing needs in the Enfield area.

But CAHA, which owns or manages around 1,600 properties, has been unable to provide assurance to the regulator that it is managing its risks and business planning in an effective way. 

The RSH also identified weaknesses in the landlord’s financial governance, as well as a lack of effective board oversight and scrutiny.


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“This means that CAHA failed to identify the potential crystallisation of a serious risk in sufficient time,” said the regulator.

CAHA also failed to inform the regulator of these risks in a timely way and its communication has fallen below the standard expected by RSH.

Harold Brown, senior assistant director – investigation and enforcement at the RSH, said: “We have found significant weaknesses in Christian Action Housing Association’s governance, which has exposed it to financial risks. We will monitor the provider closely as it works to resolve these failings and return to compliance with our standards.”

The landlord’s gradings are now G3/V2. The RSH said it has received assurance that CAHA complies with the financial viability element of the Governance and Financial Viability Standard and that its financial plans are consistent with and support its financial strategy.

However, the regulator said that the CAHA is exposed to material financial risks that it needs to manage. To protect its viability in the longer term, the association will need to retain reasonable business planning assumptions and effective cost controls.

In response to the RSH’s reactive investigation, CAHA has started to review its approach to governance and risk management. It is also implementing controls to improve the management of its repairs and maintenance service.

Jackie Kelly, chair of Christian Action, said: “Whilst we are disappointed that we have not been able to meet all regulatory expectations, we understand the RSH’s decision regarding our governance grading.

"Our financial viability grading remains compliant, and as an executive team, we are already taking steps and planning to make the improvements required to improve our governance grading.

"We want to reassure our tenants that there will be no impact on them or our service due to this decision. We do not envisage any material effect on our relationship with key stakeholders and partners."

The landlord said it will continue to work collaboratively as an organisation to deliver and improve its services to its tenants and offer meetings if desired.

Aniekan Umoren, chief executive of Christian Action, added: “Since arriving, I have been impressed by the determination of the board and executive team to learn lessons and deliver the strategic action plan we have in place to make Christian Action the good local organisation we are and aspire to remain.”

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