Decision

Previous regulatory judgement: Thames Valley Housing Association Limited (27 July 2022)

Updated 13 December 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Thames Valley Housing Association Limited

• Regulatory code: L0514

• Publication date: 27 July 2022

• Governance grade: G1

• Viability grade: V2

• Reason for publication: Changed basis for viability grade

• Regulatory route: In Depth Assessment

This regulatory judgement confirms our previous published assessment of Thames Valley Housing Association’s financial viability and governance grades (G1/V2) following completion of an In Depth Assessment (IDA).

Based on evidence gained from the IDA, the regulator has assurance that Thames Valley Housing Association (TVHA) complies with the viability elements of the Governance and Financial Viability Standard. Its financial plans are consistent with, and support, its financial strategy. It has an adequately funded business plan, sufficient security, and forecasts ongoing compliance with financial covenants.

TVHA has reduced its exposure to the risks generated by market sales activity but it continues to have material risks that it needs to manage to maintain compliance. TVHA’s development expenditure combined with the required investment in existing stock impacts financial performance and reduces its capacity to respond to adverse events.

The regulator’s assessment of TVHA’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 TVHA’s governance arrangements enable it to adequately control the organisation and to continue meeting its objectives.

Other providers included in the judgement

Metropolitan Housing Trust Limited

About the provider

Origins

The group, which trades as Metropolitan Thames Valley Housing, was created by a partnership between Metropolitan Housing Trust Limited and Thames Valley Housing Association Limited in October 2018. Its principal activities are the development and management of housing and the provision of care and support services.

Registered Entities

TVHA is a non-charitable community benefit society and the group parent. It holds a small portfolio of social housing units.

Metropolitan Housing Trust Limited, a charitable community benefit society, is the main stock holding registered provider within the group.

Unregistered Entities

TVHA has an unregistered subsidiary, Evolution (Woking) Holdings Limited, which manages a Private Finance Initiative social housing development. It also owns TVH PRS Holdings Limited which held a small market rent business that has now been disposed of. There are four active non-registered subsidiaries of Metropolitan Housing Trust Limited. The most significant of these is Metropolitan Living Limited (MLL) which develops and sells properties. The group also has an interest in eleven jointly controlled entities through MLL and Opal Limited Liability Partnership which carry out development activity.

Geographic Spread and Scale

The group owns and/or manages around 58,000 homes, operating across 128 local authority areas with concentrations in London and the South East, Cambridgeshire and the East Midlands. Its stock is mainly general needs but it also has some shared ownership and supported housing, as well as holding keyworker accommodation and leasehold stock.

Staffing and Turnover

At 31 March 2022, TVHA employed 1,930 full time equivalent staff. Group turnover for the year ended 31 March 2022 was £406m.^{[footnote 1]}

Development

TVHA aims to deliver 11,800 new homes over the next ten years. The programme comprises affordable rented, shared ownership and market sale units. TVHA is an Investment Partner with the Greater London Authority and a Homes England Strategic Partner.

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.

1. Based on unaudited 2021/22 accounts. ↩