Previous regulatory judgement: Greatwell Homes Limited (29 March 2023)
Updated 15 November 2023
Applies to England
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RSH Narrative Regulatory Judgement
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Provider: Greatwell Homes Limited
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Regulatory code: L4509
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Publication date: 29 March 2023
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Governance grade: G1
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Viability grade: V2
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Reason for publication: Changed basis for viability grade
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Regulatory route: In Depth Assessment
Regulatory judgement
This regulatory judgement confirms Greatwell Homes Limited’s existing governance and financial viability grades (G1/V2) following completion of an In Depth Assessment (IDA).
Based on evidence gained from the IDA, the regulator has assurance that Greatwell Homes Limited (Greatwell) continues to comply with the financial viability elements of the Governance and Financial Viability Standard. Its financial plans are consistent with, and support, its financial strategy. Greatwell has an adequately funded business plan with sufficient security in place.
Greatwell is increasing investment in its existing homes and this weakens its financial performance. Delivering this investment, in combination with economic uncertainty in relation to inflation and interest rates, means that Greatwell needs to implement mitigations to sustain headroom against funder covenants. Greatwell’s capacity to respond to adverse events is reduced.
The regulator’s assessment of Greatwell’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. Based on evidence gained from the IDA the regulator has assurance that Greatwell’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
Greatwell is a community benefit society delivering housing primarily for social and affordable rent.
Registered Entities
Greatwell is the only registered entity.
Unregistered Entities
There are no unregistered entities.
Geographic Spread and Scale
Greatwell owns and manages around 5,200 homes, the majority of which are general needs, and it operates in Northamptonshire.
Staffing and Turnover
Greatwell employs the full-time equivalent of 153 staff. Its turnover for the year ended 31 March 2022 was £28.5m.
Development
Greatwell’s latest business plan includes total committed and aspirational development of 185 units by 2026/27.
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.