Phoenix Community Housing Association fails to meet RSH鈥檚 governance standards鈥�
The Regulator of Social Housing has today (Wednesday 29 October) downgraded Phoenix Community Housing Association (UK) Ltd to G3, meaning that the landlord does not meet the governance requirements and there are issues of serious regulatory concern.
Phoenix听failed to听make听sure听systems听and controls were sufficiently robust to ensure听timely听payments were being made听and ensure听continued听covenant compliance,听despite听previous听findings by听RSH that Phoenix needed to increase the effectiveness of its internal听controls.听听听
RSH听also found that Phoenix听failed to听address skills gaps听and changes听in the board听in a timely manner听and that gaps in resourcing and oversight听impacted听the effectiveness of its governance听arrangements.听
While听Phoenix听has managed its position with funders to avoid default, the failings were so serious that听RSH听has听concluded听significant improvement is needed.听听
Phoenix had its consumer grading听downgraded to C2, meaning there are some weaknesses and improvement is needed, specifically in relation to听the听Safety and Quality Standard.听听
Phoenix听continues to meet the financial viability requirements听and its听V2 viability grading remained听unchanged, meaning it听has the financial capacity to deal with a reasonable range of adverse scenarios.听
RSH also published听a number of听other听regulatory judgements, including downgrading听GreenSquareAccord听from G1 to G2.听An inspection听found that听GreenSquareAccord听needed to听improve听aspects of its governance arrangements to support continued compliance, specifically in relation to board oversight of operational delivery and risk听and strengthening its internal control arrangements.听听
GreenSquareAccord听also received C2/V2 gradings.听听听
The听London Borough of Barnet,听North East听Derbyshire District Council,听and听the London Borough of Sutton and received C1 gradings,听meaning that each听landlord听is delivering the outcomes of the consumer standards overall.听
The London Borough of Hounslow听received a听C2,听meaning there are some weaknesses听in its听delivery of the consumer听standards and听improvement is needed.听
Clarion听Housing Group听received C2/G1/V1听gradings听and听Honeycomb听Group received听C2/G1/V2 gradings.听
RSH has also published听outcomes听for the first of this year鈥檚 annual stability checks, including听Lincolnshire Housing Partnership Limited,听Advance Housing and Support Limited,听Teign Housing, and听Two Rivers Housing. All听retained听their existing governance and viability gradings.听听
Kate Dodsworth, Chief of Regulatory Engagement at鈥�RSH, said:鈥��
鈥淕ood governance is vital for managing risk properly and making the right strategic decisions.听听
鈥淲e will continue to use our regulatory powers to scrutinise the sector and hold landlords to account.鈥澨�
Notes to Editors鈥�
Links to each of the judgements are available in the table below:鈥�
| Landlord | Consumer | Governance | Viability | Route |
|---|---|---|---|---|
| N/A | G1 | V1 | Stability Check | |
| C1 | 听 | 听 | Inspection | |
| C2 | G1 | V1 (regrade from V2) | Inspection | |
| C2 | G2 (downgrade) | V2 | Inspection | |
| C2 | G1 (upgrade) | V2 | Inspection | |
| C2 | 听 | 听 | Inspection | |
| C2听(based on听previous听assessment) | G1 | V2 | Stability Check | |
| C1 | 听 | 听 | Responsive Engagement | |
| C2听(downgrade) | G3听(downgrade) | V2 | Responsive Engagement | |
| C1 | 听 | 听 | Inspection | |
| C2听(based on听previous听assessment) | G1 | V2 | Stability Check | |
| N/A | G1 | V1 | Stability Check |
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Phoenix听Community Housing Association (UK) was placed on RSH鈥檚听gradings under review list听in July.听
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RSH鈥痳egulates housing associations and other private registered providers against its full set of standards. Councils are regulated against the consumer and rent standards only.鈥��
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More information about鈥�RSH鈥檚鈥�responsive engagement,鈥�programmed inspections鈥痑苍诲鈥�consumer gradings鈥痠s also available on its website.鈥����
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RSH鈥痯romotes听a viable,听efficient听and well-governed social housing sector able to deliver more and better social homes. It does this by setting standards and carrying out robust regulation focusing on driving improvement in social landlords, including local authorities, and ensuring that housing associations are well-governed, financially听viable听and offer value for money. It takes听appropriate action听if the outcomes of the standards are not being delivered.鈥���
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RSH carries out stability checks on all housing associations, and other private registered providers (PRPs), who own 1,000 homes or more. The stability checks are a yearly exercise. We look at the financial information PRPs have听submitted听to us (including their most recent business plan and annual accounts) and consider if there are any risks which might result in a change to their financial viability or governance gradings.鈥� The checks do not include local authorities because our Governance and Financial Viability Standard does not apply to them.
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For general enquiries, email听enquiries@rsh.gov.uk. For media enquiries please see our听media enquiries听page.