Previous regulatory judgement: Hundred Houses Society Limited (28 September 2022)
Updated 15 November 2023
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Hundred Houses Society Limited
- Regulatory code: L0718
- Publication date: 28 September 2022
- Governance grade: G1
- Viability grade: V2
- Reason for publication: Viability regrade
- Regulatory route: In Depth Assessment
Regulatory judgement
This regulatory judgement regrades Hundred Houses Society Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.
Based on evidence gained from an In Depth Assessment (IDA), the regulator has assurance that Hundred Houses Society (HHS) 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. HHS has an adequately funded business plan with sufficient security in place.
HHS has increased its planned investment in its existing homes, including a programme of remedial fire safety works during 2022 and 2023 and energy efficiency improvements. This level of investment has weakened HHS’s interest cover performance and limited its ability to manage adverse financial scenarios.
The regulator’s assessment of HHS’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. Based on the evidence gained from the IDA, the regulator has assurance that HHS’s governance arrangements enable it to adequately control the organisation and to continue meeting its objectives.
Other providers included in the judgement
None
About the provider
Origins
HHS is a traditional housing association and community benefit society. It owns 1,400 homes. HHS’s principal activities are the development and management of affordable housing.
Registered Entities
HHS is the only registered entity.
Unregistered Entities
HHS has one unregistered entity, Stevenson’s Legacy Company Limited, which is currently dormant.
Geographic Spread and Scale
HHS operates across nine local authority areas in southern and eastern England. The majority of its homes are in Cambridgeshire.
Staffing and Turnover
HHS employs 32 full-time equivalent staff. Its turnover for year ended 31 March 2022 was £8.9m.
Development
HHS intends to develop 100 new homes 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.