Regulatory notice published for Highstone Housing Association Ltd
Highstone has breached the regulator's Governance, Viability and Rent standards
In a regulatory notice published today (3 November 2022), the Regulator of Social Housing concluded that Highstone Housing Association Limited is non-compliant with the Governance and Viability Standard and the Rent Standard.
Following a reactive investigation, RSH found clear conflicts of interest between Highstone and third-party property companies. Highstone has failed to ensure that these arrangements are in the best interest of the registered provider and do not inappropriately advance the interests of the third parties.
RSH also identified inadequate reporting on financial performance and accounting, as well as poor decision making due to a lack of appropriate skills and independence at board level.
The regulator also found no evidence that Highstone has appropriate financial plans and mitigations in place for its long lease-based model. In addition, Highstone did not provide assurance that the rents it has charged to tenants comply with the Rent Standard.
In response to the regulator’s investigation, Highstone has recruited new independent board members and commissioned a review of its governance arrangements and its compliance with the Rent Standard.
Harold Brown, RSH’s Senior Assistant Director for Investigations and Enforcement, said:
Our investigation into Highstone Housing Association has revealed clear conflicts of interest at board level, as well as a failure to plan appropriately for the risks that come with a long-term lease-based model. Highstone has also failed to assure us that its rents comply with our standards.
We are engaging intensively with Highstone’s new board as it works to return to compliance with our standards.
Notes to editors
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Based on the most recent statistical data return, Highstone Housing Association Limited had fewer than 1,000 units, and is therefore classed as a small provider and does not have governance and financial viability grades. The regulator does not publish regulatory judgements for providers which fall into this category. Instead, in the interests of transparency, the regulator publishes a Regulatory Notice where it has evidence that a small registered provider is not meeting the regulatory standards. This notice is published under those arrangements.
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RSH placed Highstone on the gradings under review list on 14 July 2022 to indicate that it was investigating the provider’s compliance with the Governance and Financial Viability Standard.
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RSH promotes a viable, efficient and well-governed social housing sector able to deliver and maintain homes of appropriate quality that meet a range of needs. It does this by undertaking robust economic regulation focusing on governance, financial viability and value for money that maintains lender confidence and protects the taxpayer. It also sets consumer standards and may take action if these standards are breached and there is a significant risk of serious detriment to tenants or potential tenants.
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For press office contact details, see our Media enquiries page. For general queries, please email enquiries@rsh.gov.uk or call 0300 124 5225.