Decision

Previous regulatory judgement: Raven Housing Trust Limited (24 November 2021)

Updated 29 November 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Raven Housing Trust Limited
• Regulatory code: L4334
• Publication date: 24 November 2021
• Governance grade: G1
• Viability grade: V2
• Reason for publication: Changed basis for viability grade
• Regulatory route: In Depth Assessment

This regulatory judgement confirms the regulator’s previous published assessment of Raven Housing Trust Limited’s (Raven) governance and financial viability grades (G1/V2) following completion of an In Depth Assessment (IDA).

Based on evidence gained from the IDA, the regulator has assurance that Raven continues to comply with the financial viability elements of the Governance and Financial Viability Standard and can deal with a reasonable range of adverse scenarios. Its financial plans are consistent with, and support, its financial strategy. Raven has an adequately funded business plan, sufficient security, and is forecast to continue to meet its financial covenants.

Raven continues to have material financial risks that it needs to manage to maintain compliance. Its significant development and sales programme exposes it to housing market volatility and potential reductions in income. In addition, increased forecast expenditure on major repairs and maintenance weakens Raven’s interest cover position and covenant headroom, which reduces its capacity to deal with adverse events.

The regulator’s assessment of Raven’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 Raven’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

Raven is a charitable community benefit society and registered provider. Its core activities are the provision of homes for social and affordable rent and affordable home ownership. Raven also develops homes for market sale.

Registered Entities

Raven is the only registered entity in the group.

Unregistered Entities

There are three active subsidiaries in the group:

• Raven Devco Limited provides development services to the parent;
• Raven Development Homes Limited develops homes for outright sale; and
• Raven Repairs Limited provides commercial repairs services.

Geographic Spread and Scale

Raven owns and manages around 6,300 homes in South East England. The stock is mainly general needs, with some supported housing, shared ownership units and temporary accommodation.

Staffing and Turnover

At 31 March 2021, Raven employed 274 full-time equivalent staff. Group turnover for the year ended 31 March 2021 was £64.8m.

Development

Raven plans to develop about 700 units between 2021 and 2026.

About our judgements

Key to Grades

Governance:

• G1 (Compliant): The provider meets our governance requirements.
• G2 (Compliant): The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance.
• G3 (Non-compliant): 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 (Non-compliant): 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:

• V1 (Compliant): The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios.
• V2 (Compliant): 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.
• V3 (Non-compliant): 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 (Non-compliant): 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 Processes

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’.