Previous regulatory judgement: Johnnie Johnson Housing Trust Limited (14 December 2022)
Updated 29 November 2023
Applies to England
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This publication is available at https://www.gov.uk/government/publications/regulatory-judgement-johnnie-johnson-housing-trust-limited--2/current-regulatory-judgement-johnnie-johnson-housing-trust-limited-14-december-2022
RSH Narrative Regulatory Judgement
- Provider: ‘Johnnie’ Johnson Housing Trust Limited
- Regulatory code: L1231
- Publication date: 14 December 2022
- Governance grade: G1
- Viability grade: V2
- Reason for publication: Viability regrade
- Regulatory route: Stability Check and Reactive Engagement
Regulatory judgement
This regulatory judgement regrades ‘Johnnie’ Johnson Housing Trust Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.
The Regulator has assurance that ‘Johnnie’ Johnson Housing Trust Limited (JJHT) continues to comply with the financial viability elements of the Governance and Financial Viability Standard. JJHT 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.
JJHT is investing significantly in its existing homes, including a programme to improve fire safety. This investment, coupled with the economic uncertainty in relation to inflation, interest rates and rent increases, reduces JJHT’s capacity to respond to adverse events.
The regulator’s assessment of JJHT’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 JJHT’s current governance grading.
Other providers included in the judgement
None
About the provider
Origins
JJHT is a community benefit society and an exempt charity specialising in supported housing for older people, which accounts for around 60% of the homes under management.
Registered Entities
JJHT is the only registered entity.
Unregistered Entities
Johnnie Johnson Development Limited is a wholly owned development subsidiary comprised of three unregistered entities. It provides a design and build service to JJHT. Two further wholly owned subsidiaries, Astraline TEC Limited and Astraline JJ Limited, provide remote telecare and personal monitoring services.
Geographic Spread and Scale
JJHT owns and manages around 5,000 units across the north of England.
Staffing and Turnover
For the year ended 31 March 2022, the group reported a turnover of £26m and employed 175 full-time equivalent staff.
Development
JJHT has a target of delivering around 320 new homes over 2022/25. This mainly comprises general needs 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. |
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.