Decision

Current regulatory judgement: Wandle Housing Association Limited (29 November 2023)

Updated 29 November 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Wandle Housing Association Limited
• Regulatory code: L0277
• Publication date: 29 November 2023
• Governance grade: G1
• Viability grade: V2
• Reason for publication: Governance upgrade
• Regulatory route: Stability Check and Reactive Engagement

Regulatory judgement

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

Wandle Housing Association Limited (WHA) complies with the governance elements of the Governance and Financial Viability Standard. In our previous judgement in November 2022, we noted Wandle needed to implement its plans to improve customer service and strengthen the quality of stock condition information.

Based on evidence gained from reactive engagement, the regulator has assurance that WHA is improving its service delivery and customer outcomes. It has established governance structures and frameworks in relation to customer service delivery and is engaging with its residents. These changes have led to the improved oversight of resident services, and sustained improvements in performance in this area.

WHA has improved the quality of its stock condition information, and this is allowing it to make informed decisions about the future maintenance of its assets.

On the basis of a Stability Check, the regulator has assurance that WHA continues to comply 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. WHA has an adequately funded business plan, sufficient security in place and is forecast to continue to meet its financial covenants.

WHA is increasing its investment in its existing stock and in developing new homes, and as a result, interest cover is reduced. These factors, set in the context of economic pressures including inflation and interest rates, impact on 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; and

• 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 reported a turnover of £55.9m for the year ended 31 March 2023 and employed 185 full-time equivalent staff.

Development

WHA aims to develop around 300 homes between 2023 and 2026.

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.