Previous regulatory judgement: Cross Keys Homes Limited (15 November 2022)
Updated 13 December 2023
Applies to England
© Crown copyright 2023
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/regulatory-judgement-cross-keys-homes-limited/current-regulatory-judgement-cross-keys-homes-limited-15-november-2022
RSH Narrative Regulatory Judgement
- Provider: Cross Keys Homes Limited
- Regulatory code: LH4428
- Publication date: 15 November 2022
- 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 assessment of Cross Keys Homes Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.
The regulator continues to have assurance that Cross Keys Homes Limited (Cross Keys) complies 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. Cross Keys has an adequately funded business plan with sufficient security in place.
Cross Keys is investing in its existing homes and has a committed programme of development. Sales, including Low Cost Home Ownership units, form part of Cross Keys’ development programme, exposing it to housing market risk. The inclusion of this investment, coupled with the current economic uncertainty in relation to inflation and interest rates, means that Cross Keys has less financial headroom and reduced capacity to respond to adverse events.
The regulator’s assessment of Cross Keys’ 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 Cross Keys’ current governance grading.
Other providers included in the judgement
None
About the provider
Origins
Cross Keys is a charitable community benefit society primarily offering properties for social and affordable rent, including supported housing units. Cross Keys also has a portfolio of Low Cost Home Ownership properties.
Registered Entities
Cross Keys is the only registered entity.
Unregistered Entities
Cross Keys has a number of non-registered entities and joint ventures which mainly facilitate the development of new properties.
Geographic Spread and Scale
The majority of Cross Keys’ stock is located in Peterborough, with other homes situated across the east of England.
Staffing and Turnover
Cross Keys employs the full-time equivalent of approximately 339 staff. Its turnover for the year ended 31 March 2022 was £82.2m.
Development
Cross Keys’ latest business plan includes total planned development of 2,082 units by the end of the 2026-2027 financial year.
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.