Decision

Current regulatory judgement: The Pioneer Housing and Community Group Limited (29 November 2023)

Updated 29 November 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: The Pioneer Housing and Community Group Limited
• Regulatory code: L4118
• Publication date: 29 November 2023
• 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 The Pioneer Housing and Community Group Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.

Based on evidence gained from a Stability Check, the regulator has assurance that The Pioneer Housing and Community Group Limited (Pioneer) continues to comply 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. Pioneer has an adequately funded business plan, sufficient security and is forecast to continue to meet its financial covenants.

Pioneer is investing in its existing homes including through a programme to improve affordable warmth, while also continuing to develop new homes. These factors weaken Pioneer’s forecast financial performance in the short term, and when set in the context of economic pressures including inflation and interest rates, impact on its capacity to respond to adverse events.

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

Other providers included in the judgement

None

About the provider

Origins

Pioneer is a charitable community benefit society which manages and develops social housing.

Registered Entities

Pioneer is the only registered entity.

Unregistered Entities

Pioneer has two subsidiaries:

• Compass Support Services Limited is a registered charity providing a range of support services and community facilities management; and

• The Merlin Venture Limited. A company limited by guarantee which ceased trading in 2021 and is dormant.

Geographic Spread and Scale

Pioneer owns and manages around 2,500 homes predominantly in Castle Vale, Birmingham.

Staffing and Turnover

Pioneer reported turnover of £16.3m for the year ended 31 March 2023 and employs the full-time equivalent of 117 staff.

Development

Pioneer intends to develop 132 new homes by 2027, the majority of these will be affordable with a small number for market rent.

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.