Previous regulatory judgement: Gateway Housing Association Limited (26 April 2023)
Updated 13 December 2023
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Gateway Housing Association Limited
- Regulatory code: L0517
- Publication date: 26 April 2023
- Governance grade: G1
- Viability grade: V2
- Reason for publication: Changed basis for viability grade
- Regulatory route: In Depth Assessment
Regulatory judgement
This regulatory judgement confirms the regulator’s existing G1/V2 assessment of Gateway Housing Association Limited’s governance and viability, following completion of an In Depth Assessment (IDA).
The regulator has assurance that Gateway Housing Association Limited (Gateway) is compliant with the financial viability elements of the Governance and Viability Standard and that its financial plans are consistent with, and support, its financial strategy. Gateway has an adequately funded business plan, sufficient security, and is forecast to continue to meet its financial covenants.
Gateway is increasing planned investment in its existing homes, including on fire and building safety and energy efficiency work. This has a detrimental impact on interest cover. Gateway is also anticipating that further spending on energy efficiency works may be required in its next financial plan. When coupled with the current economic uncertainty in relation to inflation and interest rates, these factors reduce Gateway’s capacity to deal with adverse scenarios.
The regulator’s assessment of Gateway’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. Based on the evidence gained from the IDA, the regulator has assurance that Gateway’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
Gateway is a charitable community benefit society.
Registered Entities
Gateway is the only registered entity within the group.
Unregistered Entities
There are two unregistered entities within the group, Gateway Living Limited and Victoria Park Housing Developments Limited.
Geographic Spread and Scale
Gateway owns and manages around 3,000 homes in East London, with stock located in the London boroughs of Tower Hamlets, Hackney and Newham.
Staffing and Turnover
Gateway has 113 full-time equivalent employees. It reported a turnover of £32m in the year ended 31 March 2022.
Development
Gateway aims to develop 264 low cost home ownership and affordable rental 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. |
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.