Decision

Previous regulatory judgement: Guinness Partnership Limited (The) (26 April 2023)

Updated 27 March 2024

Applies to England

RSH Narrative Regulatory Judgement

• Provider: The Guinness Partnership Limited
• Regulatory code: 4729
• 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 our previous published assessment of The Guinness Partnership Limited’s financial viability and governance grades (G1/V2) following completion of an In Depth Assessment (IDA).

Based on evidence gained from the IDA, the regulator has assurance that The Guinness Partnership Limited (Guinness) complies with the financial viability elements of the Governance and Financial Viability Standard. Its financial plans are consistent with, and support, its financial strategy. It has sufficient security, and forecasts to continue meeting its financial covenants.

Guinness is further increasing its investment in existing homes, including building safety and energy efficiency work. Delivering this investment, in combination with the economic uncertainty in relation to inflation and interest rates, weakens its financial performance and reduces the capacity available to respond to adverse events.

The regulator’s assessment of Guinness’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 Guinness’s governance arrangements enable it to adequately control the organisation and to continue meeting its objectives.

Other providers included in the judgement

Guinness Housing Association Limited

About the provider

Origins

Guinness was founded in 1890. Its main activities relate to the development and management of housing for social and affordable rent, affordable home ownership and housing for older people. It also develops housing for market sale and provides a range of care services, including extra care, supported and retirement living.

Registered Entities

Guinness is the group parent and majority stock holding entity. It is a charitable community benefit society and the corporate trustee of The Guinness Trust.

Guinness Housing Association Limited is a subsidiary of the group parent. It is a charitable community benefit society and owns about 1,500 units.

Unregistered Entities

There are three active unregistered subsidiaries in the group:

• Guinness Developments Limited provides design and build services for the group’s affordable homes contracts;
• Guinness Homes Limited develops homes for private sale; and
• Guinness Property (City Response Limited) provides responsive and planned maintenance to the group.

There are three additional subsidiaries. Guinness Platform Limited and Live Well at Home are currently dormant, whilst Hallco 1397 Limited owned the freehold of a redevelopment that has been transferred to the group parent.

Geographic Spread and Scale

Guinness owns and manages around 64,000 homes in 141 local authority areas across England. The large majority of this is general needs housing.

Staffing and Turnover

At 31 March 2022, Guinness employed 2,383 full-time equivalent staff. Group turnover for the year ended 31 March 2022 was £388m.

Development

Guinness is an investment partner with the Greater London Authority and a Homes England Strategic Partner. It aims to deliver around 8,200 homes over the period to 2030.

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.