Previous regulatory judgement: Bromsgrove District Housing Trust Limited (30 November 2022)
Updated 30 August 2023
Applies to England
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This publication is available at https://www.gov.uk/government/publications/regulatory-judgement-bromsgrove-district-housing-trust-limited/current-regulatory-judgement-bromsgrove-district-housing-trust-limited-30-november-2022
RSH Narrative Regulatory Judgement
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Provider: Bromsgrove District Housing Trust Limited
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Regulatory code: LH4415
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Publication date: 30 November 2022
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Governance grade: G1
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Viability grade: V2
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Reason for publication: Viability regrade
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Regulatory route: Stability Check and Reactive Engagement
Regulatory judgement
This regulatory judgement regrades Bromsgrove District Housing Trust Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.
The regulator has assurance that Bromsgrove District Housing Trust Limited (Bromsgrove) complies with the viability elements of the Governance and Financial Viability Standard. Its financial plans are consistent with, and support, its financial strategy. It has effective treasury management arrangements and has ensured access to adequate levels of liquidity. It forecasts ongoing compliance with financial covenants.
Bromsgrove is continuing to develop new homes and is also increasing investment in its existing homes. This weakens its financial performance and, coupled with higher inflation and interest rate pressures in the current economic environment, reduces Bromsgrove’s capacity to respond to adverse events.
The regulator’s assessment of Bromsgrove’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. On the basis of the Stability Check, the regulator has concluded that there is no evidence to indicate a change to Bromsgrove’s current governance grading.
Other providers included in the judgement
None
About the provider
Origins
Bromsgrove is a company limited by guarantee and a registered charity. It manages and develops social housing.
Registered Entities
Bromsgrove is the only registered entity.
Unregistered Entities
There are no unregistered entities.
Geographic Spread and Scale
Bromsgrove owns and manages around 4,200 properties, principally in Bromsgrove.
Staffing and Turnover
Bromsgrove’s turnover for the year ended 31 March 2022 was £25.4m. It employs the full-time equivalent of 150 staff.
Development
Bromsgrove plans to develop around 630 new homes by 2027.
About our judgements
Key to Grades
Governance:
| Compliant | |
|---|---|
| G1 | The provider meets our governance requirements. |
| G2 | The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance. |
| Non-compliant | |
|---|---|
| G3 | The provider does not meet our governance requirements. There are issues of serious regulatory concern and in agreement with us the provider is working to improve its position. |
| G4 | The provider does not meet our governance requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action. |
Viability:
| Compliant | |
|---|---|
| V1 | The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios. |
| V2 | The provider meets our viability requirements. It has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance. |
| Non-compliant | |
|---|---|
| V3 | The provider does not meet our viability requirements. There are issues of serious regulatory concern and, in agreement with us, the provider is working to improve its position. |
| V4 | The provider does not meet our viability requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action. |
Definitions of Regulatory Routes
In Depth Assessment (IDA): An IDA is a bespoke assessment of a provider’s viability and governance, including its approach to value for money. It involves on-site work and considers in detail a provider’s ability to meet its financial obligations and the effectiveness of its governance structures and processes.
Stability Checks: Based primarily on information supplied through regulatory returns, a Stability Check is an annual review of a provider’s financial position and its latest business plan. The review is focused on determining if there is evidence to indicate a provider’s current judgements merit reconsideration.
Reactive Engagement: Reactive engagement is unplanned work which is triggered by new information or a developing situation which may have implications for a provider’s current regulatory judgement.
Stability Checks and Reactive Engagement: In some cases, we will publish narrative regulatory judgements which combine evidence gained from both Stability Checks and Reactive Engagement.
For further details about these processes, please see Regulating the Standards.