Previous regulatory judgement: Halton Housing (30 November 2022)
Updated 27 September 2023
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Halton Housing
- Regulatory code: L4456
- Publication date: 30 November 2022
- Governance grade: G1
- Viability grade: V2
- Reason for publication: Viability regrade
- Regulatory route: Stability Check and Reactive Engagement
Regulatory judgement
This judgement regrades our assessment of Halton Housing’s viability from V1 to V2 and confirms its existing G1 grade for governance.
The regulator has assurance that Halton Housing complies 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 Housing has adequate unutilised loan facilities, sufficient asset security and liquidity and is forecast to continue to meet its financial covenants.
Halton Housing is investing in its existing homes by increasing maintenance and major repairs expenditure, which weakens its financial performance. Delivering this investment, coupled with the current economic uncertainty in relation to inflation and interest rates, reduces Halton Housing’s capacity to respond to adverse events.
The regulator’s assessment of Halton Housing’s 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 Halton Housing’s current governance grading.
Other providers included in the judgement
None
About the provider
Origins
Halton Housing 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 Housing is the only registered entity in the group.
Unregistered Entities
Halton Housing has two unregistered entities. Open Solutions (OSUK) Limited, undertakes the development, ownership and operation of market rent and market sales activities. HHT Development Ltd. provides design and construction services for Halton Housing’s development programme.
Geographic Spread and Scale
Halton Housing 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
Halton Housing employs the full-time equivalent of 308 staff. Its turnover for the year ended 31 March 2022 was £40.9m.
Development
Halton Housing intends to deliver about 980 units between 2023 and 2028. Its programme includes homes for affordable rent, shared ownership and outright market sale.
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. |
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.