RSH reveals 14 more associations hit with financial viability downgrades

Also downgraded to V2 were Community Housing, Havebury Housing Partnership, Hightown, Leeds Federated, One Vision Housing, Orwell, Plus Dane Housing, Trident Group, and West Kent. 

The downgrades reflect a challenging economic climate for providers and are among a wave of similar judgements by the regulator. 

It follows 19 housing associations being downgraded for financial viability in mid November, with another 15 at the end of the month.  

Elsewhere, 34 providers retained their V1 grades. These include Accent, B3 Living, Citizen, Cottsway, and Phoenix Community Housing. 

Fourteen housing associations retained their V2 grades, including A2Dominion, Gentoo, and Notting Hill Genesis.

The details were revealed after the RSH published the third substantial set of results of its annual stability checks for private registered providers that own more than 1,000 homes.

The checks, which are based on data submitted by providers in June 2022, focus on financial resilience and consider changes to risk profile, such as external economic factors beyond their control.

Jonathan Walters, deputy chief executive at the RSH, warned in October that there could be widespread viability regrades amid the current economic challenges.

Higher inflation and borrowing costs, as well as a weakening housing market, are putting greater pressure on providers’ finances.

Those pressures come at the same time that social landlords are investing in new homes and carrying out building safety and decarbonisation works, as well as repairs.