Decision

Previous regulatory judgement: Livin Housing Limited (30 November 2022)

Updated 17 January 2024

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Livin Housing Limited

• Regulatory code: L4538

• 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 regulatory judgement regrades our previous assessment of Livin Housing Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.

Based on evidence gained from a stability check and reactive engagement, the regulator continues to have assurance that Livin Housing Limited (Livin) 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. Livin has an adequately funded business plan with sufficient security in place.

Livin is increasing investment in its existing homes, while also continuing to develop new homes, and this weakens its financial performance. Delivering this investment, in combination with the current economic uncertainty in relation to inflation and interest rates, reduces Livin’s capacity to respond to adverse events.

The regulator’s assessment of Livin’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 Livin’s current governance grading.

Other providers included in the judgement

None

About the provider

Origins

Livin is a charitable community benefit society that owns 8,641 properties. It was formed in 2009 to take the transfer of stock from Sedgefield Borough Council. Livin’s main strategic objective is the development and management of affordable housing.

Registered Entities

Livin is the only registered entity in the group.

Unregistered Entities

There is one unregistered entity, Livin Developments Limited which is currently dormant. Livin also holds a 25% stake in a joint venture, Spirit Regeneration & Development Co LLP, which undertakes development services.

Geographic Spread and Scale

The provider operates predominately in County Durham.

Staffing and Turnover

At 31 March 2022, the group employed 135 full-time equivalent employees. Group turnover for the year ended 31 March 2022 was £36.979m.

Development

Livin forecasts development of 725 units between 2023 and 2027. The majority of these are general needs affordable rent properties.

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.