Decision

Current regulatory judgement: Trident Housing Association Limited (17 January 2024)

Updated 17 January 2024

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Trident Housing Association Limited
• Regulatory code: L0979
• Publication date: 17 January 2024
• Governance grade: G2
• Viability grade: V2
• Reason for publication: Governance downgrade and changed basis for viability grade
• Regulatory route: Stability Check and Reactive Engagement

Regulatory judgement

This regulatory judgement downgrades our previous published assessment of Trident Housing Association Limited’s governance from G1 to G2 and confirms its existing V2 grade for financial viability.

Trident Housing Association Limited (Trident) continues to meet the requirements on governance set out in the Governance and Financial Viability Standard. However, following reactive engagement, we have concluded that it needs to improve aspects of its governance arrangements to ensure continued compliance.

The regulator’s review of Trident’s Statistical Data Return for 2022 identified that a significant number of homes had been re-classified as specialised supported housing. Trident’s response after initial engagement was that this was due to a data inputting error. However, following a lengthy period of regulatory engagement, Trident has recognised that it does not have assurance that its rent setting arrangements are operating effectively. Trident has commissioned a review of its rents and although not yet concluded, this has identified some issues that need further investigation.

Until Trident has completed this work the regulator will continue to receive updates and assess compliance with the Rent Standard. Trident has now improved its communication with the regulator.

This issue has highlighted underlying weaknesses in Trident’s risk management and the quality of its data. Improvement is needed to ensure that effective controls are in place for managing risks and that Trident’s board has appropriate levels of assurance.

The regulator’s assessment of Trident’s compliance with the financial viability elements of the Governance and Financial Viability Standard is unchanged. We have assurance that Trident 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. Trident has an adequately funded business plan, sufficient security and is forecast to continue to meet its financial covenants.

Trident is increasing investment in its existing homes which is reducing its interest cover headroom. Set in the context of economic pressures including inflation and interest rates, this impacts on Trident’s capacity to respond to adverse events.

Other providers included in the judgement

None

About the provider

Origins

Trident is a community benefit society and a provider of housing and care services.

Registered Entities

Trident has two unregistered subsidiaries. Trident Reach is a registered charity offering care and support to residents across the Midlands. Trident Star is a company limited by shares that manages a small portfolio of shops and an office within Trident’s estates.

Unregistered Entities

There are no unregistered entities.

Geographic Spread and Scale

At 31 March 2023, the group owned and managed around 3,600 homes predominantly in the West Midlands and Derbyshire.

Staffing and Turnover

Trident reported a turnover of £41.7m for the year ended 31 March 2023 and employs the full-time equivalent of 585 staff.

Development

Trident plans to develop 68 homes in 2024/25 and 25 homes in 2025/26.

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.

Note: The use of an asterisk (*) against a grade indicates that the assessment refers to a provider that is designated as being for-profit.

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.