Decision

The Havebury Housing Partnership (LH4339) - Regulatory Judgement: 25 September 2024

Updated 25 September 2024

Applies to England

Our Judgement

	Grade/Judgement	Change	Date of assessment
Consumer	C1 Our judgement is that overall the landlord is delivering the outcomes of the consumer standards. The landlord has demonstrated that it identifies when issues occur and puts plans in place to remedy and minimise recurrence.	First grading	September 2024
Governance	G1 Our judgement is that the landlord meets our governance requirements.	Assessed and unchanged	September 2024
Viability	V2 Our judgement is that the landlord 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.	Assessed and unchanged	September 2024

Reason for publication

We are publishing a regulatory judgement for The Havebury Housing Partnership (Havebury) following an inspection completed in September 2024.

This regulatory judgement confirms a consumer grading of C1, a governance grading of G1 and a financial viability grading of V2.

Prior to this regulatory judgement, the governance and financial viability grades for Havebury were last updated in November 2023 following a stability check, to confirm grades of G1 and V2. This is the first time we have issued a consumer grade in relation to this landlord.

Summary of the decision

From the evidence and assurance gained during the inspection it is our judgement that overall Havebury is delivering the outcomes of the consumer standards. Based on this assessment, we have concluded a C1 grade for Havebury.

Our judgement is that Havebury meets our governance requirements. Havebury has provided evidence to demonstrate the effectiveness of its governance arrangements and that it continues to effectively manage the risks of its activities, allowing it to deliver its strategic objectives and improve its services to tenants. Based on this assessment, we have concluded a G1 grade for Havebury.

Our judgement is that Havebury meets our financial viability requirements and has the capacity to manage a reasonable range of adverse scenarios. Havebury has provided appropriate assurance that it has access to sufficient liquidity. However, forecast increased investment in existing homes, alongside a significant development programme of new homes, means that it is reliant on sales surpluses to meet its funder covenants. Based on this assessment, we have concluded a V2 grade remains appropriate.  

How we reached our judgement

We carried out an inspection of Havebury to assess how well it is delivering the outcomes of the consumer standards and meeting our governance and financial viability requirements, as part of our planned regulatory inspection programme. During the inspection, we considered all four of the consumer standards: Neighbourhood and Community Standard, Safety and Quality Standard, Tenancy Standard, and the Transparency, Influence and Accountability Standard.

During the inspection we observed a board meeting and a tenants scrutiny committee, spoke to tenants, held meetings with Havebury including with its non-executive directors, and reviewed a wide range of documents provided by Havebury.

Our regulatory judgement is based on all the relevant information we obtained during the inspection as well as analysis of information received from Havebury through their regulatory returns and other regulatory engagement activity.

Summary of findings 

Consumer – C1 – September 2024

During the inspection Havebury provided evidence-based assurance that it has appropriate systems in place to ensure the health and safety of tenants in their homes and associated areas.

There is evidence that Havebury keeps an accurate record of the condition of its homes through physical surveys and has a process for keeping this information up to date. Havebury has provided evidence that it uses its understanding of the quality and safety of its tenants’ homes to make decisions on future investment to maintain and improve homes.

Havebury has demonstrated it provides an effective repairs and maintenance service that responds appropriately to the urgency of works, and tenant vulnerabilities and is taking action to further improve the service and outcomes for tenants.

We gained assurance that Havebury promotes the safety of its communities and cooperates with relevant partners to promote social, environmental, and economic wellbeing in the areas where it provides social housing. Havebury’s complaint handling approach is accessible and publicised to tenants, with performance monitored by its resident experience committee. We saw evidence that Havebury has a process in place to ensure that it learns from complaints and uses performance information to make improvements, such as changes to its handling of anti-social behaviour cases.

We saw evidence that Havebury’s homes are let in a fair and transparent way, with an allocations process that considers potential tenants’ needs to promote tenancy sustainment. A support fund and specialist officers are available to help those in need throughout their tenancy. Havebury has a risk-based approach to tenancy audits, focusing on vulnerable tenants and potential tenancy fraud.

Havebury gathers tenants’ views in a range of ways, providing meaningful opportunities to influence and scrutinise strategies, policies, and services. Consultations have received good response rates from tenants, with evidence of Havebury using this information to make changes to services. Havebury has identified where there could be improvements made to its tenant engagement and is responding accordingly.

There is evidence of Havebury using the tenant information it holds to tailor services to meet tenants’ diverse needs and deliver fair and equitable outcomes. Havebury recognises that this is an area that requires continuing development, and work is ongoing to build on the information received through its tenant survey in late 2023. Clear and accessible information is provided to tenants about Havebury’s services and performance, allowing tenants to understand what to expect and scrutinise how well Havebury is delivering those services.

Governance – G1 – September 2024

Based on the evidence gained from the inspection we have assurance that Havebury’s governance arrangements enable it to effectively manage its risks and adequately control the organisation, allowing it to continue to deliver its objectives.

Comprehensive risk monitoring and performance reporting supports the board, enabling constructive challenge on key policies, decisions, and any underperformance against key performance indicators. Evidence of this was seen through board observation, meetings, and reviewing documents provided by Havebury.

We saw evidence that the board is effectively managing and scrutinising its financial position, with appropriate oversight and approval of financial plans, strategies, and policies. Decision making is supported by robust stress testing, carried out against identified risks across a range of scenarios, with appropriate mitigation strategies. The relationship between the board and its committees is working in line with its delegations to strengthen assurance in key areas of risk and compliance. Oversight of development risks and shared ownership sales exposure is delegated to the homes and investment committee, with appropriate escalation to the board.

Board member skills and experience align to Havebury’s activities and risk profile, with regular effectiveness reviews. The internal audit programme is aligned to its key risks and operations, providing independent assurance on the effectiveness of its risk management, governance, and internal controls.

Viability – V2 – September 2024

Based on evidence gained through inspection, we have assurance that Havebury’s financial plans are consistent with, and support, its financial strategy. Havebury has an adequately funded business plan, sufficient security available to support its financial plans, and is forecast to continue to meet its financial covenants. It has effective treasury management arrangements, has ensured access to adequate levels of liquidity, and forecasts ongoing compliance with its financial covenants.

Havebury has material risks and exposures that it needs to manage. It is increasing investment in its existing homes while delivering a significant development and sales programme of new homes and is reliant on shared ownership sales surpluses to meet its funder covenants. Delivery of this investment in new and existing homes means Havebury’s financial headroom is reduced, it has the capacity to respond to a reasonable range of adverse scenarios but it will need to manage these material risks.

Background to the judgement

About the landlord

Havebury is a charitable Community Benefit Society formed in 2002 following the transfer of homes from St Edmundsbury Borough Council.

It is the only RSH registered entity in its group and is a non-profit registered provider of social housing. It has two unregistered subsidiaries.

Havebury has 7,458 homes in 11 local authorities across Suffolk, Norfolk, Cambridgeshire, and Essex.

At 31 March 2024, the group employed 255 full-time equivalent staff. Group turnover for the year ended 31 March 2024 was £54.2m. Havebury plans to develop around 830 properties between 2024 and 2028.

Our role and regulatory approach

We regulate for a viable, efficient, and well governed social housing sector able to deliver quality homes and services for current and future tenants.

We regulate at the landlord level to drive improvement in how landlords operate. By landlord we mean a registered provider of social housing. These can either be local authorities, or private registered providers (other organisations registered with us such as non-profit housing associations, co-operatives, or profit-making organisations).

We set standards which state outcomes that landlords must deliver. The outcomes of our standards include both the required outcomes and specific expectations we set. Where we find there are significant failures in landlords which we consider to be material to the landlord’s delivery of those outcomes, we hold them to account. Ultimately this provides protection for tenants’ homes and services and achieves better outcomes for current and future tenants. It also contributes to a sustainable sector which can attract strong investment.

We have a different role for regulating local authorities than for other landlords. This is because we have a narrower role for local authorities and the Governance and Financial Viability Standard, and Value for Money Standard do not apply. Further detail on which standards apply to different landlords can be found on our standards page.

We assess the performance of landlords through inspections and by reviewing data that landlords are required to submit to us. In Depth Assessments (IDAs) were one of our previous assessment processes, which are now replaced by our new inspections programme from 1 April 2024. We also respond where there is an issue or a potential issue that may be material to a landlord’s delivery of the outcomes of our standards. We publish regulatory judgements that describe our view of landlords’ performance with our standards. We also publish grades for landlords with more than 1,000 social housing homes.

The Housing Ombudsman deals with individual complaints. When individual complaints are referred to us, we investigate if we consider that the issue may be material to a landlord’s delivery of the outcomes of our standards.

For more information about our approach to regulation, please see Regulating the standards.

Further information

• Regulating the standards

• Regulatory standards for landlords