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Two landlords upgraded and Clarion retains V2
Two small landlords have been returned to the top grade for governance, while the UK’s biggest housing association has kept its V2 grade, in the latest round of action from the English regulator.
South Liverpool Homes (SLH) and Croydon Churches Housing Association (CCHA) have been upgraded to G1 following a stability check and reactive engagement from the Regulator of Social Housing (RSH). Both also kept their V1 status for financial viability.
SLH, which operates around 3,830 homes, was previously downgraded to a G2 in 2021 after the RSH found weaknesses in its approach to property development, allocations and probity arrangements.
However, the RSH said today that the landlord has addressed the “weaknesses” by “enhancing its procedures for managing conflicts of interest, and improving the quality and accessibility of information in its assets and liabilities register”.
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Two years ago, SLH’s long-serving chief executive Julie Fadden stepped down by “mutual agreement” with its board. Anna Bishop was later appointed to replace her, after joining from One Manchester.
In its judgement today, the RSH pointed out that “under new leadership” SLH had reviewed its operations, leading to a “better consideration of risk and return in its activities”.
Ms Bishop said: “This is a significant achievement which is testament to everyone who has played their part in this transformation journey so far.”
London-based CCHA, which has around 1,500 homes, was previously downgraded to G2 in 2022 as the regulator warned that its board needed to improve its oversight of business and financial planning, including stress-testing.
In its judgement today, the RSH said that CCHA’s board had “developed and improved its collective understanding of financial performance, and its ability to make decisions and challenge the executive on financial matters”.
A review of financial reporting had also “delivered improvements in the accuracy, consistency and timeliness of information” received by the landlord’s board and the regulator, the judgement said.
Tracy Cullen, chief executive of CCHA, said it is “extremely pleased” with the outcome.
She added: “The board and executive team have taken a collaborative approach and worked hard to improve our internal systems over the past 18 months.”
The regulator also announced today that Clarion has retained its G1/V2 status following an annual stability check, which assesses a provider’s most recent business plan and annual accounts.
The 135,000-home group was among a first wave of landlords downgraded to a V2 for financial viability in November 2022 as the wider macroeconomic conditions began to bite.
Clarion has managed to retained its G1 status for governance despite repeated warnings from housing secretary Michael Gove about its service to residents.
In late 2022, Mr Gove wrote to Clarion claiming it was “letting down tenants”. He wrote another letter this month, following four findings of severe maladministration for Clarion, to say he remained “deeply concerned”.
Meanwhile, the regulator today also confirmed that 35,000-home Vivid has retained its G1/V1 ratings following an in-depth assessment.
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