Decision

Current regulatory judgement: Halton Housing (27 September 2023)

Updated 27 September 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Halton Housing

• Regulatory code: L4456

• Publication date: 27 September 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 assessment of Halton Housing’s governance and financial viability as G1/V2, following completion of an In Depth Assessment (IDA).

The regulator has assurance that Halton Housing (Halton) 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. Halton 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.

Halton is increasing investment in its existing homes, resulting in reduced levels of interest cover. Alongside the current economic uncertainty in relation to inflation and interest rates, this has reduced its capacity to respond to adverse events.

The regulator’s assessment of Halton’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 Halton’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

Halton is a charitable community benefit society that was formed in December 2005 to take the transfer of housing stock from Halton Borough Council.

Registered Entities

Halton is the only registered entity in the group.

Unregistered Entities

Halton has two unregistered entities. Open Solutions UK Limited, (OSUK) undertakes the development, ownership and operation of market rent and market sales activities. HHT Development Ltd provides design and construction services for Halton’s development programme.

Geographic Spread and Scale

Halton owns and manages around 7,500 homes, with the majority located in the borough of Halton in the North West of England

Staffing and Turnover

Audited accounts for the year ended 31 March 2023 show the group employed 312 full-time equivalent staff and reported a turnover of £51.4m.

Development

Halton intends to deliver around 500 new homes between 2023 and 2031. This mainly comprises general needs affordable rent and shared ownership units.

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.