Decision

Tuntum Housing Association Limited (L3808) - Regulatory Judgement: 27 June 2024

Updated 27 June 2024

Applies to England

Our Judgement

	Grade/Judgement	Change	Date of assessment
Consumer		Not assessed yet
Governance	G1: Our judgement is that the landlord meets our governance requirements.	Upgrade	June 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.	Unchanged	November 2023

Reason for publication

We are publishing a regulatory judgement for Tuntum Housing Association Limited (Tuntum) to upgrade its governance grading from G2 to G1.

In September 2021, following an In Depth Assessment (IDA), we published a regulatory judgement which downgraded Tuntum’s governance grade from G1 to G2, having concluded that Tuntum needed to improve aspects of its governance arrangements to ensure continued compliance. (IDAs were one of our previous assessment processes now replaced by our new inspections programme from 1 April 2024.)

Subsequently, we carried out responsive engagement with Tuntum that focused on its governance arrangements. We are now publishing this regulatory judgement following our responsive engagement.

Summary of the decision

Our judgement is that Tuntum meets our governance requirements. Through our responsive engagement, Tuntum has provided evidence to demonstrate that it has strengthened its governance since September 2021. We have concluded that this has provided sufficient assurance that Tuntum has made the necessary improvements to be assessed as a G1 grading.

We last reviewed Tuntum’s financial viability grading in the 2023 stability check that concluded there was no change to Tuntum’s V2 grading.

How we reached our judgement

In response to Tuntum’s downgrade from G1 to G2 in September 2021 we carried out responsive engagement that focused on the quality and effectiveness of Tuntum’s governance arrangements. This responsive engagement included reviewing documents provided by Tuntum, discussions with Tuntum and its non-executive directors, and observations of Tuntum’s board. Our judgement is based on all of the relevant information we obtained during the responsive engagement process.

Based on the stability check that concluded in November 2023, our assessment of the Tuntum’s viability grade remains V2.

Summary of findings

Governance – G1 – June 2024

Based on the evidence gained from our responsive engagement, we have concluded that we have appropriate assurance that Tuntum’s governance arrangements enable it to effectively manage its risks and adequately control the organisation, allowing it to deliver its objectives.

Tuntum has strengthened its governance arrangements. Changes in the leadership, and development of Tuntum’s board have added organisational capacity and improved the oversight and management of risks. In particular, health and safety risks to its tenants, the safeguarding of tenants, and understanding of the quality of its homes are areas where Tuntum has evidenced improvements. Tuntum has invested in improving the use and presentation of data on its tenants and homes, and in the quality of reporting to its board. These improvements mean the board can make better informed decisions about risks and the future of the organisation. We have also observed improvements in the board’s approach to carrying out its responsibilities, including how board members proactively challenge the executive team and seek assurance over Tuntum’s approach to managing key risks. Through our responsive engagement Tuntum has demonstrated a commitment to transparency and co-regulation.

Tuntum has also provided assurance that it has scoped and is delivering further improvements in its governance. This will include delivering remaining actions from its external assurance reports and ensuring that board recruitment aligns with future skills and experience requirements. Tuntum has put additional arrangements in place that aim to deliver continuous improvements in its governance.

Overall, we consider that Tuntum has provided appropriate assurance that it has sufficiently addressed the governance weaknesses we previously identified. Our judgement is that the landlord meets our governance requirements.

Viability – V2 – November 2023

Based on evidence gained from the 2023 stability check, we have assurance that Tuntum’s financial plans are consistent with, and support, its financial strategy. Tuntum has the capacity to deal with a reasonable range of adverse scenarios. However it is operating with a low level of financial headroom, and has plans to increase debt to fund its on-going development. These factors reduce Tuntum’s capacity and flexibility to cope with downside risk and require on-going management to ensure continued compliance.

Tuntum has an adequately funded business plan, sufficient security in place, and is forecast to continue to meet its financial covenants. Tuntum is continuing investment in improving its existing homes. At the same time, it is developing new homes. Delivering this plan weakens its financial performance and impacts on Tuntum’s capacity to respond to adverse events.

Background to the judgement

About the landlord

Tuntum is an exempt charity registered under the Co-operative and Community Benefit Societies Act 2014. It is the parent of its group. It was established as a black and minority ethnic housing association and is a non-profit registered provider of social housing.

Tuntum’s core business is the provision of general needs housing. It also provides supported housing and services.

Tuntum is the only registered entity in the group. Tuntum has one unregistered subsidiary, Time-Out Care Services Ltd. It ceased trading in 2017 and is currently dormant.

Tuntum operates across 12 local authority areas in the East Midlands. It owns and manages around 1,600 properties, the majority are general needs properties, with the remainder including affordable rent, supported housing and low cost home ownership properties. Two-thirds of Tuntum’s properties are in Nottingham.

As of 31 March 2023, the group employed 57 staff. Group turnover for the year to 31 March 2023 was £10.3m. Tuntum plans to develop around 105 units between 2025 and 2029.

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