Decision

Previous regulatory judgement: Together Housing Group Limited (15 November 2022)

Updated 29 November 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Together Housing Group Limited

• Regulatory code: L4464

• 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 Together Housing Group Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.

Based on evidence gained from a Stability Check and Reactive Engagement, the regulator has assurance that Together Housing Group Limited (THGL) 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. THGL has an adequately funded business plan with sufficient security in place.

THGL is making additional investment in existing homes to complete fire safety works and improve energy efficiency while continuing to develop new homes. Delivering this weakens its financial performance and, coupled with the current economic uncertainty in relation to inflation and interest rates, reduces THGL’s capacity to respond to adverse events.

The regulator’s assessment of THGL’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 THGL’s current governance grading.

Other providers included in the judgement

Together Housing Association Limited

About the provider

Origins

THGL is a charitable community benefit society that owns and manages 36,800 homes. THGL’s principal activities are the development and management of social housing.

Registered Entities

THGL is a registered entity and parent of a group that includes one other registered entity, Together Housing Association Limited.

Unregistered Entities

THGL has ten subsidiaries and eleven joint ventures. It also has six dormant subsidiaries.

THGL’s unregistered entities include:

• Synergy Housing Solutions Limited, used to provide development services to the group.

• Newground Together, used as a charity delivering social and environmental programmes and its subsidiary Newground CIC, providing consultancy and advisory services.

• Pendleton Together Operating Limited and Pendleton Together Holdings Limited, used to maintain 1,250 properties in Salford through a Private Finance Initiative scheme.

• Together Roof Energy Limited and Together Roof Energy SPV Limited, used to install solar panels and implement alternative energy efficiency programmes.

• Together Housing Finance plc, used to issue an own named bond.

• Together Commercial Limited, used to invest in a number of joint ventures.

• SP Plus (Development) Limited, used to deliver development opportunities in Salford alongside Salford City Council.

THGL’s joint ventures are principally used to develop homes across a range of tenures.

Geographic Spread and Scale

THGL operates across a large geographical area in the North of England and the East Midlands.

Staffing and Turnover

THGL employs 1,448 full-time equivalent staff. Its turnover for the year ended 31 March 2022 was £190.2m.

Development

THGL intends to develop 1,861 homes between 2023 and 2025, 70% of this development is to be partially funded by government grant.

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.