Decision

Previous regulatory judgement: Wandle Housing Association Limited (15 November 2022)

Updated 29 November 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Wandle Housing Association Limited
• Regulatory code: L0277
• Publication date: 15 November 2022
• Governance grade: G2
• Viability grade: V2
• Reason for publication: Changed basis for governance and viability grades
• Regulatory route: In Depth Assessment

Regulatory judgement

This regulatory judgement confirms the regulator’s existing G2/V2 assessment of Wandle Housing Association Limited’s governance and viability.

Wandle Housing Association Limited (WHA) continues to meet the requirements on governance set out in the Governance and Financial Viability Standard. Following an In Depth Assessment, we have concluded that WHA has strengthened its internal financial controls, revised its business planning framework, and improved its stress testing and management of strategic risks. WHA now has an increased focus on customer services and needs to implement its plans to improve customer outcomes. Additionally, it needs to strengthen the quality of its stock condition information to underpin an updated asset management strategy.

The regulator’s assessment of WHA’s compliance with the financial viability elements of the Governance and Financial Viability Standard is unchanged. WHA has an adequately funded business plan, sufficient security in place and is forecast to continue to meet its financial covenants under a reasonable range of scenarios. WHA’s financial plan does, however, include material exposures in the short to medium term which require effective oversight. While it is able to increase investment in existing and new homes delivering this strategy, coupled with the current economic uncertainty in relation to inflation and interest rates, reduces WHA’s capacity to respond to adverse events.

Other providers included in the judgement

None

About the provider

Origins

WHA is a charitable society registered under the Co-operative and Community Benefit Societies Act 2014. Its activities relate to the provision of social housing, including low cost home ownership.

Registered Entities

WHA is the only registered entity.

Unregistered Entities

WHA has three unregistered entities:

• Delta Homes Limited is a company limited by shares with non-charitable status. It enables WHA to recover VAT on professional fees and contractor payments for new build construction services.
• Ravensbourne Developments Limited is a company limited by shares with non-charitable status. It builds and sells homes for outright sale but is not currently trading.
• Unitworthy Property Management Limited is a company limited by shares with non-charitable status where WHA has the majority share. It provides maintenance services for an individual block of flats.

Geographic Spread and Scale

WHA owns around 7,000 units and operates predominantly in south London.

Staffing and Turnover

WHA employs 173 full-time equivalent staff. Its turnover for year ended 31 March 2022 was £59.4m.

Development

WHA aims to develop 312 units between 2022 and 2025.

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.