RSH downgrades Sustain to V3
The Regulator of Social Housing has downgraded Sustain (UK) Ltd to V3 meaning that the landlord does not meet the financial viability requirements and there are issues of serious regulatory concern.
Sustain provides supported housing in Birmingham through short term leases. It has not demonstrated it is able to manage its financial risk and that its business planning is sufficiently robust to ensure its long-term viability.
The regulator’s previous G3 grading remains unchanged. Its governance arrangements are not effective to ensure adequate oversight of third parties it relies on to deliver services to its tenants and to ensure that it is not inappropriately advancing third party interests.
The previous judgement that Sustain is not delivering the outcomes of the Rent Standard also remains unchanged.
Jonathan Walters, Deputy Chief Executive of RSH, said:
It is disappointing that Sustain has not made the necessary improvements in its governance since the last judgement.
Failing to meet the requirements of the rent standard in this case has given rise to serious financial risks.
It must now take effective action to demonstrate a financial plan that is based on appropriate and reasonable assumptions that protects its homes and delivers quality services for its tenants.”
Separately, RSH has placed Phoenix Community Housing Association on its gradings under review list.
RSH is currently investigating matters which may indicate serious failings in the landlord delivering the outcomes of the Governance and Financial Viability Standard and the Consumer Standards. The outcome of the investigation will be confirmed in a regulatory judgement, once completed.
Notes to Editors
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The regulatory standards page provides information about the economic and consumer standards that registered providers must meet.
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RSH promotes a viable, efficient and well-governed social housing sector able to deliver more and better social homes. It does this by setting standards and carrying out robust regulation focusing on driving improvement in social landlords, including local authorities, and ensuring that housing associations are well-governed, financially viable and offer value for money. It takes appropriate action if the outcomes of the standards are not being delivered.
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If RSH is investigating a landlord due to suspected serious failings, we may place them on the gradings under review list. This is likely to be where our engagement is ongoing and we think it is appropriate to alert stakeholders to the fact that we have serious concerns about that landlord’s delivery of the standards outcomes, which we are investigating. More information about the gradings under review list and RSH’s approach is available on its website.
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Phoenix Community Housing Association’s current regulatory grades are G2/V2/C1.
For general enquiries email enquiries@rsh.gov.uk. For media enquiries please see our Media Enquiries page.