Previous regulatory judgement: Settle Group (15 November 2022)
Updated 15 November 2023
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Settle Group
- Regulatory code: L4370
- Publication date: 15 November 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 published assessment of Settle Group’s financial viability from V1 to V2 and confirms its G1 grade for governance.
The regulator has assurance that Settle Group (Settle) complies with the financial viability elements of the Governance and Financial Viability Standard. Its financial plans are consistent with, and support, its financial strategy. Settle has effective treasury management arrangements and has ensured access to adequate levels of liquidity. It also forecasts ongoing compliance with financial covenants.
Settle is planning to increase investment in its existing homes, including works to improve energy efficiency. It is also forecasting increasing development costs. In combination with the current economic uncertainty in relation to inflation and interest rates, these factors place pressure on financial performance and reduce its capacity to deal with downside risk.
The regulator’s assessment of Settle’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 Settle’s current governance grading.
Other providers included in the judgement
None
About the provider
Origins
Settle is a charitable community benefit society and the parent of the group. It manages and develops social housing.
Registered Entities
Settle is the only registered entity.
Unregistered Entities
There is one unregistered entity, Rowan Homes (NHH) Limited, which develops new housing properties for outright sale.
Geographic Spread and Scale
Settle owns and manages around 9,000 homes operating across Hertfordshire, Bedfordshire, Buckinghamshire and South Cambridgeshire.
Staffing and Turnover
Settle’s turnover for the year ended 31 March 2022 was £70.8m. It employs the full-time equivalent of 274 staff.
Development
Settle plans to develop 1,500 homes by 2025. This includes around 800 units to be delivered through strategic partnership agreements with Homes England.
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.