The Regulator of Social Housing has announced that it is taking enforcement action against Concept Housing Association after a prolonged period of it failing to address serious failings in the way its run.
The RSH says that the housing association’s approach to business planning is weak and the way it manages risk is inadequate, adding that social landlords must act in the best interests of tenants – not those of external organisations, and that Concept cannot demonstrate that its arrangements with external organisations are appropriate.
The investigation also found that Concept has not managed its affairs effectively, and that the RSH does not have confidence in Concept’s long-term viability or its ability to protect tenants’ homes from undue risk, with a significant financial deterioration in recent months. Its financial statements remain overdue to RSH by over a year.
The RSH says that it has pushed Concept to address these issues, but it has repeatedly failed to do so. As a result, the RSH will require Concept to:
- Commission a third-party insolvency expert to develop a wind-down plan. This will outline the steps that Concept would need to take to protect tenants in the event of further deterioration of its financial position.
- Get an independent review of board and executive skills, to identify the gaps that need addressing, and produce a plan rapidly afterwards to address them.
- Give RSH evidence and independent assurance that it is meeting health and safety obligations for all its social homes – and that a plan is in place to address any issues.
- Use these independent reviews to produce a credible improvement plan that demonstrates a clear route to compliance.
Should Concept fail to comply, RSH will take further action.
RSH Chief Executive, Jonathan Walters, said: “Our standards set vital protections for social housing. Landlords need to be well run and financially viable, so they can ensure tenants’ homes stay in the social housing sector.”
“Concept has failed to address our concerns and hasn’t put things right despite our intensive engagement. We will not accept this. So today we are using our powers to make Concept address its widespread failings.”
In addition, RSH has announced that it is currently investigating matters which may indicate serious failings in Hexagon Housing Association delivering the outcomes of the Governance and Financial Viability Standard.
