Current regulatory judgement: Muir Group Housing Association Limited (27 March 2024)
Updated 27 March 2024
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Muir Group Housing Association Limited
- Regulatory code: L2194
- Publication date: 27 March 2024
- Governance grade: G1
- Viability grade: V2
- Reason for publication: Viability regrade
- Regulatory route: In Depth Assessment
Regulatory judgement
This regulatory judgement regrades our previous published assessment of Muir Group Housing Association Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.
Based on evidence gained from an In Depth Assessment (IDA), the regulator has assurance that Muir Group Housing Association Limited (Muir) continues to comply with the viability elements of the Governance and Financial Viability Standard. Muir 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.
Muir needs to manage a range of exposures including increased costs relating to delivery of its repairs and maintenance programmes. It is also investing in improving the quality and energy efficiency of existing homes and servicing increased debt associated with its development programme. These factors, set in the context of economic pressures, weaken Muir’s financial performance, and reduce its capacity to manage adverse events.
The regulator’s assessment of Muir’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 Muir’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
Muir is a charitable community benefit society that manages and develops social housing.
Registered Entities
Muir is the only registered entity.
Unregistered Entities
Muir has one unregistered subsidiary, Muir Property Solutions Limited that provides repairs and maintenance services to Muir.
Geographic Spread and Scale
Muir owns and manages around 5,800 homes across a wide geographical area with concentrations of homes in the north west and the east of England.
Staffing and Turnover
Muir reported turnover of £33.4m for the year ended 31 March 2023 and employs the full-time equivalent of 183 staff.
Development
Muir aims to develop 500 new affordable homes under its five year strategy to 2027.
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.