Decision

Current regulatory judgement: Golding Homes Limited (15 November 2023)

Updated 15 November 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Golding Homes Limited
• Regulatory code: LH4402
• Publication date: 15 November 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 Golding Homes Limited’s financial viability grade from V1 to V2 and confirms its G1 grade for governance.

The regulator has assurance that Golding Homes Limited (Golding Homes) 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. Golding Homes has an adequately funded business plan, sufficient security and is forecast to continue to meet its financial covenants.

Golding Homes has increased its investment in its existing homes and is developing new homes in line with its strategic aims. As a result, its financial performance has weakened. In the context of economic pressures including inflation and interest rates, these factors impact on Golding Homes’ capacity to respond to adverse events.

The regulator’s assessment of Golding Homes’ 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 Golding Homes’ current governance grading.

Other providers included in the judgement

None

About the provider

Origins

Golding Homes was established in 2004, originally as Maidstone Housing Trust, following a stock transfer from Maidstone Borough Council. It is a charitable community benefit society and the parent of the group. Golding Homes’ core business is the provision of social housing, mainly for general needs and housing for older people.

Registered Entities

Golding Homes is the only registered entity in the group.

Unregistered Entities

Golding Homes has two wholly owned unregistered subsidiaries:

• Golding Maintenance Services Limited is dormant; and

• Golding Places Limited delivers commercial services and properties for open market sale.

Geographic Spread and Scale

Golding Homes operates across 12 local authority areas, mainly in Kent. It owns and manages around 8,500 homes in and around Maidstone.

Staffing and Turnover

Golding Homes reported a turnover of £66.9m for the year ended 31 March 2023 and employs the full-time equivalent of 275 staff.

Development

Golding Homes plans to develop around 1,900 new homes by 2033.

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.