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Our Judgement

	Grade/Judgement	Change	Date of assessment
Consumer	C2 Our judgement is that there are some weaknesses in the landlord delivering the outcomes of the consumer standards and improvement is needed.	First grading	July 2026
Governance	G1 Our judgement is that the landlord meets our governance requirements.	Assessed and unchanged	July 2026
Viability	V1 Our judgement is that the landlord meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios.	Assessed and unchanged	July 2026

Reason for publication

We are publishing a regulatory judgement for Local Space following an inspection completed in July 2026.

This regulatory judgement confirms a consumer grade of C2, a governance grade of G1 and a financial viability grade of V1.

Prior to this regulatory judgement, the governance and financial viability grades for Local Space were last updated in November 2025 following a stability check to confirm a G1 grade for governance and a V1 grade for financial viability. This is the first time we have issued a consumer grade in relation to this landlord.

Summary of the decision

From the assurance gained during the inspection, based on the evidence provided by Local Space, we have concluded that there are some weaknesses in Local Space’s delivery of the outcomes of the consumer standards and improvement is needed, specifically in relation to the Safety and Quality Standard and Transparency, Influence and Accountability Standard. Based on this assessment, we have concluded a C2 grade for Local Space.

Our judgement is that Local Space meets our governance requirements. Local Space has provided evidence to demonstrate the effectiveness of its governance arrangements and that it continues to effectively manage the risks of its activities, allowing it to deliver its strategic objectives. Based on this assessment, we have concluded a G1 grade for Local Space.

Our judgement is that Local Space meets our financial viability requirements and has the financial capacity to deal with a wide range of adverse scenarios. Local Space has a strong financial profile, and its stress testing demonstrates that financial capacity is built into its business plan. Local Space has provided appropriate assurance that it has access to sufficient liquidity and adequate funding is in place. Based on this assessment, we have concluded a V1 grade for Local Space.

How we reached our judgement

We carried out an inspection of Local Space to assess how well it is delivering the outcomes of the consumer standards and meeting our governance and financial viability requirements, as part of our planned regulatory inspection programme. During the inspection, we considered all four of the consumer standards: Neighbourhood and Community Standard, Safety and Quality Standard, Tenancy Standard, and the Transparency, Influence and Accountability Standard.

During the inspection we observed a board meeting and a Resident Policy and Scrutiny Panel, spoke with tenants, held meetings with Local Space including its non-executive directors, interviewed staff, and reviewed a wide range of documents provided by Local Space.

Our regulatory judgement is based on all the relevant information we obtained during the inspection as well as analysis of information supplied by Local Space in its regulatory returns and other regulatory engagement activity.

Summary of findings  

Consumer – C2 – July 2026

During the inspection, Local Space demonstrated that it understands the condition of its homes and this informs the provision of good quality, well maintained and safe homes for tenants. This includes ensuring its homes meet the Decent Homes Standard.

We received assurance that Local Space takes reasonable steps to ensure the health and safety of its tenants, but improvement is required in how it obtains assurance where third party building owners have responsibility for the safety of communal areas. During the inspection we found that Local Space was already taking steps to strengthen its approach in this area and to ensure that robust processes are in place.

Improvement is needed in Local Space’s approach to tackling damp and mould to ensure that it can meet the legally required timescales and process to inspect and repair hazards like damp and mould. During the inspection, we saw evidence that Local Space had recognised the need for improvement and was taking steps to strengthen its approach in this area, however, further improvements are required.

We found weaknesses in Local Space’s delivery of an effective, efficient and timely repairs service. Local Space is implementing changes that are intended to improve service performance. Local Space’s repair completion times have recently declined. Further work is required to demonstrate sustained improvements in the quality and timeliness of repairs outcomes for tenants once the new operating model is in place. Repairs remain an area of focus for Local Space while it implements these changes, and this will form an important part of our ongoing engagement.

Improvement is also needed in Local Space’s approach to keeping tenants informed, particularly in relation to buildings owned by third party building owners where health and safety assurance is incomplete. The information published by Local Space represents only a partial view of the position for tenants of those buildings, limiting their ability to understand the risks affecting their homes and to hold their landlord to account.

In relation to the Neighbourhood and Community Standard, we have evidence that Local Space works in partnership with relevant organisations to deter and tackle anti-social behaviour and hate incidents in the neighbourhoods where it provides homes.

We found weaknesses in the evidence provided that Local Space takes action to deliver fair access to services and equitable outcomes for tenants. A specific area of weakness is the current arrangements for ensuring that those delivering services have access to relevant information about tenants, limiting Local Space’s ability to tailor services and improve outcomes for tenants.

Tenants have meaningful opportunities to scrutinise services and influence decision making, and a range of engagement opportunities are available. We saw evidence that Local Spaces uses tenant feedback to inform service delivery.

Governance – G1 – July 2026

Based on the evidence gained from the inspection, we have assurance that Local Space’s governance arrangements enable it to effectively manage its risks and adequately control the organisation, allowing it to deliver its objectives. We saw evidence of board challenge on performance against strategic objectives and consideration of risk appetite in strategic decision making.

We have assurance that the board is appropriately sighted on decisions required and oversees them using a risk-based approach.

We saw evidence of a structured and proactive approach to succession planning to ensure that Local Space’s board has the appropriate skills, knowledge and experience to deliver its objectives.

We have assurance that the board regularly reviews its effectiveness and takes appropriate action to address identified improvements. An externally facilitated board effectiveness review is completed every three years, with the most recent completed in 2025. Delivery of the resulting action plan has been monitored by the Governance and Remuneration Committee.

We saw evidence that Local Space’s board is provided with sufficient information to assure itself that the internal control framework is operating effectively and in line with its risks. Assurance is obtained from a range of sources, including third parties, and there is evidence of a track record of implementing audit recommendations.

Viability – V1 – July 2026

Local Space meets the financial viability requirements of the Governance and Financial Viability Standard and its financial plans are consistent with, and support, its financial strategy. Local Space has an adequately funded business plan with sufficient security and liquidity and is forecast to continue to meet its financial covenants. Local Space’s business plan is based on reasonable assumptions for inflation and interest rates and demonstrates financial capacity to invest in its homes appropriately and maintain good levels of interest cover.

Stress testing demonstrates Local Space has the capacity to withstand a wide range of plausible but severe downside scenarios and that it has mitigations in place.

Background to the judgement

About the landlord

Local Space owns and manages around 1,800 homes, offering temporary social housing and key worker accommodation across several London boroughs. Local Space’s turnover for the year ended 31 March 2025 was £47.3m and it employs the full-time equivalent of 65 staff. Local Space intends to expand supply through acquisition led growth and aims to deliver 20% more homes in Greater London by 2030.

Our role and regulatory approach

We regulate for a viable, efficient, and well governed social housing sector able to deliver quality homes and services for current and future tenants.  

We regulate at the landlord level to drive improvement in how landlords operate. By landlord we mean a registered provider of social housing. These can either be local authorities, or private registered providers (other organisations registered with us such as non-profit housing associations, co-operatives, or profit-making organisations). 

We set standards which state outcomes that landlords must deliver. The outcomes of our standards include both the required outcomes and specific expectations we set. Where we find there are significant failures in landlords which we consider to be material to the landlord’s delivery of those outcomes, we hold them to account. Ultimately this provides protection for tenants’ homes and services and achieves better outcomes for current and future tenants. It also contributes to a sustainable sector which can attract strong investment. 

We have a different role for regulating local authorities than for other landlords. This is because we have a narrower role for local authorities and the Governance and Financial Viability Standard, and Value for Money Standard do not apply. Further detail on which standards apply to different landlords can be found on our standards page. 

We assess the performance of landlords through inspections and by reviewing data that landlords are required to submit to us. In Depth Assessments (IDAs) were one of our previous assessment processes, which are now replaced by our inspections programme from 1 April 2024. We also respond where there is an issue or a potential issue that may be material to a landlord’s delivery of the outcomes of our standards. We publish regulatory judgements that describe our view of landlords’ performance with our standards. We also publish grades for landlords with more than 1,000 social housing homes. 

The Housing Ombudsman deals with individual complaints. When individual complaints are referred to us, we investigate if we consider that the issue may be material to a landlord’s delivery of the outcomes of our standards.  

For more information about our approach to regulation, please see Regulating the Standards.

Further information

• Regulating the standards
• Regulatory standards for landlords

Related documents

• Decent Homes Standard