Decision

Previous regulatory judgement: Regenda Limited (14 December 2022)

Updated 27 March 2024

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Regenda Limited
• Regulatory code: 4653
• Publication date: 14 December 2022
• Governance grade: G2
• Viability grade: V2
• Reason for publication: Governance downgrade and viability regrade
• Regulatory route: Stability Check and Reactive Engagement

Regulatory judgement

This regulatory judgement downgrades our assessment of Regenda Limited’s governance grade from G1 to G2 and regrades its financial viability grade from V1 to V2.

Regenda Limited (Regenda) has breached the Rent Standard and needs to significantly strengthen its risk management, internal controls and assurance framework to ensure that its rents comply with relevant requirements and its own strategic objectives and policies. Rents have been overcharged on around 500 homes, and inadvertently undercharged on over 4000 homes for a prolonged period. The board needs to ensure that it is managing its rent setting with an appropriate degree of skill, diligence and effectiveness. Regenda is engaging with the regulator and is taking action to achieve compliance with rent requirements.

The regulator has assurance that Regenda 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. Regenda has an adequately funded business plan, sufficient security and is forecast to continue to meet its financial covenants.

Regenda is increasing its investment in its existing stock. This planned investment is based on analysis of stock condition information and takes account of cost inflation increases to maintenance and major repairs, which includes an increase in spend on fire safety work. Delivering this investment, coupled with the current economic uncertainty in relation to wider inflation and interest rates, reduces Regenda’s capacity to respond to adverse events.

Other providers included in the judgement

Redwing Living Limited

About the provider

Origins

Regenda is a charitable community benefit society, formed in December 2001. Three other housing associations were incorporated within Regenda in 2011.

Registered Entities

Redwing Living Limited is a not for profit registered provider. Its activities include private rented properties, leasehold and apartment block management, shared ownership and outright sales.

Unregistered Entities

Regenda has eight active unregistered entities:

• M&Y Maintenance & Construction Limited provides responsive repairs, planned works, and build services across the North West of England;

• M&Y (Regenda Partnership) Limited undertakes property repairs and build services across the North West of England;

• McDonald Property Rentals Limited is a lettings agency operating in the Fylde area;

• Petrus Community is a registered charity that provides community support, property repairs and build services;

• The Learning Foundry Limited is an education and training provider;

• Centre 56 Limited is a childcare provider, based in Liverpool, for women and children who have suffered, or are at risk of suffering, domestic abuse;

• The National Communities Resource Centre Limited is a training based entity covering areas such as building resilience, engaging your community and involving and empowering residents; and

• Regenda Developments Limited undertakes new development work for Regenda.

Geographic Spread and Scale

Regenda owns and manages around 13,000 homes in 30 local authorities. The majority of its stock is in the North West of England.

Staffing and Turnover

Regenda employs the full-time equivalent of 665 staff. Its turnover for the year ended 31 March 2022 was £72.4m.

Development

Regenda intends to deliver around 650 units between 2023 and 2027. Its programme includes homes for social rent, affordable rent, low cost home ownership, non-social rent and outright market sale.

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.