Decision

Previous regulatory judgement: Cheshire Peaks & Plains Housing Trust Limited (29 March 2023)

Updated 25 October 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Cheshire Peaks & Plains Housing Trust Limited
• Regulatory code: L4472
• Publication date: 29 March 2023
• Governance grade: G1
• Viability grade: V1
• Reason for publication: Governance upgrade
• Regulatory route: In Depth Assessment

Regulatory judgement

This regulatory judgement upgrades our assessment of Cheshire Peaks & Plains Housing Trust Limited’s governance from G2 to G1 and confirms its V1 grade for financial viability.

Our previous assessment, published in September 2021, upgraded Cheshire Peaks & Plains Housing Trust Limited (Peaks & Plains) governance grade from G3 to G2. It recognised that the provider had strengthened its governance arrangements but that some aspects still required improvement to support continued compliance.

Based on evidence gained from an In Depth Assessment (IDA), the regulator has assurance that Peaks & Plains has further strengthened its governance arrangements. The board has refreshed its membership and now has a more strategic focus including enhanced oversight of the delivery of the organisation’s strategic plans and priorities. It has improved the management of risks, including those relating to compliance with loan covenants. Peaks & Plains has also implemented a series of improvements to the quality of its data and has strengthened its reporting and oversight of compliance with its health and safety responsibilities.

The regulator’s assessment of Peaks & Plains’ compliance with the financial viability elements of the Governance and Financial Viability Standard is unchanged. Based on evidence gained from the IDA, the regulator has assurance that Peaks & Plains’ financial plans are consistent with, and support, its financial strategy. The provider has an adequately funded business plan, sufficient security in place, and is forecast to continue to meet its financial covenants under a wide range of adverse scenarios.

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 5,200 homes in Cheshire and Derbyshire.

Staffing and Turnover

Peaks & Plains employs 156 full-time equivalent staff. Its turnover for the year ended 31 March 2022 was £27.7m.

Development

Peaks & Plains’ strategy is to develop a total of around 400 homes between 2022 and 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.

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.