Decision

Rooftop Housing Group Limited (L4404) - Regulatory Judgement: 25 September 2024

Updated 25 September 2024

Applies to England

Our Judgement

	Grade/Judgement	Change	Date of assessment
Consumer	C2 Our judgement is that there are some weaknesses in the landlord delivering the outcomes of the consumer standards and improvement is needed.	First grading	September 2024
Governance	G1 Our judgement is that the landlord meets our governance requirements.	Assessed and unchanged	September 2024
Viability	V2 Our judgement is that the landlord 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.	Assessed and unchanged	September 2024

Reason for publication

We are publishing a regulatory judgement for Rooftop Housing Group Limited (Rooftop) following an inspection completed in September 2024.

This regulatory judgement confirms a consumer grading of C2, a governance grading of G1 and a financial viability grading of V2.

Prior to this regulatory judgement, the governance and financial viability grades for Rooftop were last updated in January 2024 following a stability check which confirmed grades of G1 and V2. This is the first time we have issued a consumer grade in relation to this landlord.

Summary of the decision

Based on the evidence and assurance gained during the inspection, it is our judgement that there are some weaknesses in how Rooftop is delivering the outcomes of the consumer standards and improvement is needed. Specifically, these relate to outcomes in the Safety and Quality Standard and the Transparency, Influence and Accountability Standard. Based on this assessment, we have concluded a C2 grade for Rooftop.

Our judgement is that Rooftop meets our governance requirements. Rooftop has provided evidence to demonstrate the effectiveness of its governance arrangements and that it continues to effectively manage the risks of its activities. Based on this assessment, we have concluded a G1 grade for Rooftop.

Our judgement is that Rooftop meets our financial viability requirements and has the financial capacity to manage a reasonable range of adverse scenarios. Rooftop’s business plan is based on reasonable assumptions, and it has provided appropriate assurance that it has access to sufficient funding. Rooftop’s financial profile reflects the significant investment it is making in tenants’ homes and it needs to manage material risks to ensure continued compliance. Based on this assessment, we have concluded a V2 grade for Rooftop.

How we reached our judgement

We carried out an inspection of Rooftop to assess how well it is delivering the outcomes of the consumer standards and meeting our governance and financial viability requirements, as part of our planned regulatory inspection programme. During the inspection, we considered all four of the consumer standards: Neighbourhood and Community Standard, Safety and Quality Standard, Tenancy Standard, and the Transparency, Influence and Accountability Standard.

During the inspection we observed a board meeting and tenant scrutiny panel, spoke to tenants, interviewed staff, and reviewed a wide range of documents provided by Rooftop.

Our regulatory judgement is based on all of the information we obtained during the inspection as well as analysis of information supplied by Rooftop in its regulatory returns and other regulatory engagement activity.

Summary of findings 

Consumer – C2 – September 2024

During the inspection Rooftop provided evidence-based assurance that it has appropriate systems for ensuring the health and safety of its tenants in their homes and associated communal areas. Rooftop has an accurate, up to date and evidenced understanding of the condition of its homes at an individual property level that reliably informs its provision of good quality, well maintained and safe homes for tenants and it ensures that tenants’ homes meet the Decent Homes Standard. Performance information on compliance with legal requirements is regularly reported to Rooftop’s board. Where stock condition surveys have identified potential hazards it has acted appropriately to make improvements and has appointed specialist contractors to undertake remedial work where necessary. Rooftop has also sought independent assurance in strengthening its approach to fire safety.

We saw evidence of weaknesses in Rooftop’s provision of an effective, efficient and timely repairs, maintenance and planned improvements service for the homes and communal areas for which it is responsible. In particular, it continues to have challenges with meeting deadlines for both urgent and non-urgent works and is taking steps to improve performance in this.

In relation to the Neighbourhood and Community Standard, we gained assurance that Rooftop is co-operating with relevant partners to deter and manage anti-social behaviour and hate incidents in the neighbourhoods in which it provides social housing. It also works co-operatively with other agencies tackling domestic abuse and enables tenants to access appropriate support and advice.

In relation to the Transparency, Influence and Accountability Standard, we saw evidence that Rooftop takes tenants’ views into account in its decision making about how landlord services are delivered, and that it communicates how tenants’ views have been considered. A customer scrutiny panel is in place and there is evidence that it is supported to carry out scrutiny reviews of services. These have included an assessment of the effectiveness of Rooftop’s approach to handling cases of anti-social behaviour, the delivery of grounds maintenance services, and of its approach to support digital inclusion. The outcomes of the panel’s work are reported to Rooftop’s audit and risk committee and there is evidence that the panel’s recommendations have been implemented.

To ensure that it continues to take tenants’ views into account in its decision making about how landlord services are delivered, Rooftop is taking steps to strengthen tenant engagement including setting up three customer experience groups.

Rooftop regularly publishes performance information including quarterly feedback and service improvement reports to its tenants. Rooftop’s commitment to fair and respectful treatment of its tenants is reflected in its updated Equality, Diversity and Inclusion Strategy, and there is ongoing work to improve its understanding of its tenants to provide services that meet a range of diverse needs.

We saw evidence of weaknesses in Rooftop’s complaints handling, in particular, it has not consistently responded to complaints in a timely manner. Rooftop has now made changes to its approach to complaints handling to improve performance and ensure it is addressing complaints fairly, effectively and promptly.

Governance – G1 – September 2024

Based on the evidence gained from the inspection, there is assurance that Rooftop’s governance arrangements are meeting the requirements of the Governance and Financial Viability Standard. The skills, experience and knowledge of its leadership are appropriately aligned with the activities of the organisation and there is a structured approach to developing and appraising skills to support succession planning. Rooftop’s board actively challenges and seeks assurance regarding Rooftop’s management of risks.

Rooftop has provided appropriate assurance that its board proactively reviews its approach to delivering against its purpose and regularly considers alternative options to ensure it is achieving value for money in making best use of resources. The board has clear ownership and oversight of operational and strategic performance and it has demonstrated a willingness and ability to address the areas of underperformance that have contributed to its C2 grade. This includes formulation of a repairs improvement plan and the establishment of a centralised complaints team.

Roles and responsibilities within the wider governance structure are well defined and understood, and the board has demonstrably acted to mitigate financial risk and supported Rooftop’s compliance with the financial viability elements of the Governance and Financial Viability Standard.

Rooftop is committed to continuous governance improvement that is evidenced through annual effectiveness reviews and in-depth periodic external governance reviews. The most recent external review was completed in June 2022 and recommendations informed an action plan that has been monitored by the board.

Viability – V2 – September 2024

Based on the evidence gained through the inspection, we have assurance that Rooftop’s financial plans are consistent with, and support, its financial strategy. Rooftop has an adequately funded business plan and a policy that is used to ensure ongoing access to sufficient liquidity. We saw evidence that reasonable headroom is forecast against funders’ covenants and Rooftop is not reliant on sales income to meet its funders’ covenants.

Rooftop is increasing investment in existing homes, while continuing to develop new homes. This increase in investment will weaken Rooftop’s financial performance. We saw evidence that Rooftop has taken steps to manage this position and has financial capacity to respond to a reasonable range of adverse scenarios.

Background to the judgement

About the landlord

Rooftop manages around 7,000 social housing homes, mainly in South Worcestershire and North Gloucestershire. Around 75% of its stock is used for general needs purposes, and it also owns smaller portfolios of supported housing and housing for older people, Low Cost Home Ownership and keyworker accommodation. The group provides homes for the Gypsy and Traveller community at three sites, in partnership with Solihull and Bromsgrove Councils.

Rooftop is the non-charitable, non-asset holding registered provider parent of the group. It has a single active subsidiary:

• Rooftop Housing Association Limited (RHA) is an asset holding, charitable Registered Society and registered provider of social housing. RHA was initially established as an asset holding non-charitable body in 1994 to take a transfer of 4020 homes from Wychavon District Council in Worcestershire. RHA converted to charitable status in 2003 and provides all of the housing held by the group.

Rooftop also has two dormant subsidiaries:

• Rooftop Management Limited; and
• Rooftop Homes Limited.

The group plans to develop around 500 homes in the period to March 2028. The group is a strategic partner with Homes England through the Matrix Housing Partnership.

For the financial year 2022/23, the group reported turnover of £47.7m and employed 173 full-time equivalent staff.

Our role and regulatory approach

We regulate for a viable, efficient, and well governed social housing sector able to deliver quality homes and services for current and future tenants.

We regulate at the landlord level to drive improvement in how landlords operate. By landlord we mean a registered provider of social housing. These can either be local authorities, or private registered providers (other organisations registered with us such as non-profit housing associations, co-operatives, or profit-making organisations).

We set standards which state outcomes that landlords must deliver. The outcomes of our standards include both the required outcomes and specific expectations we set. Where we find there are significant failures in landlords which we consider to be material to the landlord’s delivery of those outcomes, we hold them to account. Ultimately this provides protection for tenants’ homes and services and achieves better outcomes for current and future tenants. It also contributes to a sustainable sector which can attract strong investment.

We have a different role for regulating local authorities than for other landlords. This is because we have a narrower role for local authorities and the Governance and Financial Viability Standard, and Value for Money Standard do not apply. Further detail on which standards apply to different landlords can be found on our standards page.

We assess the performance of landlords through inspections and by reviewing data that landlords are required to submit to us. In Depth Assessments (IDAs) were one of our previous assessment processes, which are now replaced by our new inspections programme from 1 April 2024. We also respond where there is an issue or a potential issue that may be material to a landlord’s delivery of the outcomes of our standards. We publish regulatory judgements that describe our view of landlords’ performance with our standards. We also publish grades for landlords with more than 1,000 social housing homes.

The Housing Ombudsman deals with individual complaints. When individual complaints are referred to us, we investigate if we consider that the issue may be material to a landlord’s delivery of the outcomes of our standards.

For more information about our approach to regulation, please see Regulating the standards.

Further information

• Regulating the standards

• Regulatory standards for landlords

Related documents 

• Decent Home Standard