Previous regulatory judgement: Orwell Housing Association Limited (14 December 2022)
Updated 15 November 2023
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Orwell Housing Association Limited
- Regulatory code: L0028
- 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 our previous assessment of Orwell Housing Association Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.
The regulator has assurance that Orwell Housing Association Limited (Orwell) 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. Orwell has an adequately funded business plan, sufficient security and is forecast to continue to meet its financial covenants.
Orwell is increasing investment in its existing homes and undertaking a development and sales programme. These factors, together with inflation and interest rate pressures in the current economic environment, reduce Orwell’s capacity to respond to adverse events.
The regulator’s assessment of Orwell’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 Orwell’s current governance grading.
Other providers included in the judgement
None
About the provider
Origins
Orwell is a charitable community benefit society.
Registered Entities
Orwell is the only registered entity.
Unregistered Entities
There is one unregistered entity, Orwell Homes limited, that provides construction services and develops homes for open market sale.
Geographic Spread and Scale
Orwell owns and manages around 4,000 homes throughout East Anglia.
Staffing and Turnover
For the year ended 31 March 2022 Orwell’s turnover was £47.5m. It employed 214 full-time equivalent staff.
Development
Orwell plans to deliver around 1,000 homes by 2028.
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.