Decision

Current regulatory judgement: Cheshire Peaks & Plains Housing Trust Limited (25 October 2023)

Updated 25 October 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Cheshire Peaks & Plains Housing Trust Limited
• Regulatory code: L4472
• Publication date: 25 October 2023
• Governance grade: G1
• Viability grade: V2
• Reason for publication: Viability regrade
• Regulatory route: Stability Check and Reactive Engagement

Regulatory judgement

This regulatory judgement regrades our previous published assessment of Cheshire Peaks & Plains Housing Trust Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.

The regulator has assurance that Cheshire Peaks & Plains Housing Trust Limited (Peaks & Plains) continues to comply with the financial viability elements of the Governance and Financial Viability Standard and that its financial plans are consistent with, and support, its financial strategy. Peaks & Plains has an adequately funded business plan, sufficient security in place and is forecast to continue to meet its financial covenants under a reasonable range of scenarios.

Peaks & Plains is investing significantly in its existing stock and in developing new homes, and as a result, interest cover is reduced. Additional investment will also be required to ensure continued compliance with fire safety targets. These factors, set in the context of economic pressures including inflation and interest rates, impact on Peaks & Plains’ capacity to respond to adverse events.

The regulator’s assessment of Peaks & Plains’ 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 Peaks & Plains’ current governance grading. 

Other providers included in the judgement

None

About the provider

Origins

Peaks & Plains was established in July 2006 following a stock transfer from Macclesfield Borough Council. It is a charitable community benefit society. Its principal activity is the management and maintenance of social housing.

Registered Entities

Peaks & Plains is the only registered entity in the group.

Unregistered Entities

Peaks & Plains has two unregistered subsidiaries, Peaks & Plains Devco Limited, and Peaks & Plains Tradeco Limited which is currently dormant.

Geographic Spread and Scale

Peaks & Plains owns and manages around 5,300 homes in Cheshire and Derbyshire.

Staffing and Turnover

For the year ended 31 March 2023, Peaks & Plains reported a turnover of £31.5m and employed 154 full-time equivalent staff.

Development

Peaks & Plains has a target of delivering 353 new homes between 2024 and 2029. The new homes will be a mixture of general needs and shared ownership units.  

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.

Note: The use of an asterisk (*) against a grade indicates that the assessment refers to a provider that is designated as being for-profit.

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.