Previous regulatory judgement: Eden Housing Association Limited (29 March 2023)
Updated 13 December 2023
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Eden Housing Association Limited
- Regulatory code: L4140
- Publication date: 29 March 2023
- Governance grade: G1
- Viability grade: V2
- Reason for publication: Viability regrade
- Regulatory route: In Depth Assessment
Regulatory judgement
This regulatory judgement regrades Eden Housing Association Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.
The regulator has assurance that Eden Housing Association Limited (EHA) continues to comply with the financial viability elements of the Governance and Financial Viability Standard. EHA 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.
EHA is increasing its investment in existing stock, including higher expenditure on stock sustainability and energy efficiency. As a result EHA is forecasting reduced headroom against lender covenant requirements. This coupled with increasing economic uncertainty in relation to inflation and interest rates, means that EHA has reduced capacity to respond to adverse events.
The regulator’s assessment of EHA’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. Based on the evidence gained from the In Depth Assessment, the regulator has assurance that EHA’s governance arrangements enable it to adequately control the organisation and to continue meeting its objectives.
Other providers included in the judgement
None
About the provider
Origins
EHA was established following a stock transfer in 1997 and is a charitable community benefit society. EHA focuses on providing general needs affordable housing.
Registered Entities
EHA is the only registered entity.
Unregistered Entities
Eden Property Developments Limited is EHA’s only active subsidiary and provides housing development activities for EHA.
Geographic Spread and Scale
EHA owns and manages around 1,800 units in the North Cumbria region.
Staffing and Turnover
For the year ended 31 March 2022, the group reported a turnover of £10.5m and employed 54 full-time equivalent staff.
Development
EHA’s current plan includes development of 30 new general needs homes by 2026.
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.