Three landlords upgraded to V1 in latest batch of judgements

Co-operatives Ravenscroft Re-Build and Allnutt Mill Housing were both found to have failed to meet the regulator’s economic standards. As smaller landlords with fewer than 1,000 homes, they do not receive gradings.

The regulator’s investigation found that Ravenscroft does not have effective governance arrangements in place and has failed to manage its resources effectively.

“It faces significant liquidity issues, putting social homes at risk and there is insufficient assurance that it has the ability to deliver services and meet obligations to ensure tenant safety,” it said.

Ravenscroft has also failed to have a robust risk and internal control framework in place, “leaving it exposed to the potential for fraud and material loss of public funds”.

The regulator received information regarding alleged viability issues at Allnutt Mill via a third party.

Its investigation found that the landlord “could not demonstrate appropriate internal controls” over its spending, which has led to a “deterioration of its liquidity position”.

The landlord was also unable to provide routine financial information, such as an up-to-date cashflow forecast or a complete understanding of its current liabilities.

“It is therefore unable to demonstrate an ability to manage its future liquidity position appropriately and inhibits its committee in being able to make informed strategic decisions,” the regulator said.

The RSH carried out stability checks on 22 landlords. All but the three upgrades for Halton, Hundred Houses Society and Golden Lane retained their previous governance and financial viability gradings.