Press release

RSH publishes regulatory notice for Rapport Housing and Care following a breach of the economic standards

Rapport Housing and Care has breached the regulator's governance and financial viability standard

From:
Regulator of Social Housing
Published
31 March 2023

In a regulatory notice published today (31 March 2023), the Regulator of Social Housing has concluded that Rapport Housing and Care has breached the governance and financial viability standard.

The regulator’s investigation found a series of failures in Rapport’s governance and financial management, which has led to significant liquidity issues.

Rapport did not carry out robust stress testing on its business plan, failed to properly consider the implications of taking on new liabilities, and did not plan appropriately for the impact this would have on its business and regulatory compliance.

These issues demonstrate a lack of effective oversight by Rapport’s board, and the regulator has concluded that it failed to manage its affairs with appropriate skill, independence and foresight. The regulator has used its powers to appoint interim officers to the board, to give Rapport additional skills and capacity to address these failings.

Harold Brown, Senior Assistant Director for Investigations and Enforcement, said:

This is a fundamental failure of governance by Rapport, including ineffective management of its financial risks which led to significant liquidity issues. Rapport needs to address these issues urgently and we are working with the provider intensively to ensure that it does so.

As part of this approach we have appointed statutory officers to strengthen Rapport’s board, to help provide the capacity needed to support the management of its financial position, ensure that tenants remain safe, and address weaknesses in its governance.

Notes to editors

  1. Based on the most recent statistical data return, Rapport Housing and Care had fewer than 1,000 units, and is therefore classed as a small provider and does not have governance and financial viability grades. The regulator does not publish regulatory judgements for providers which fall into this category. Instead, in the interests of transparency, the regulator publishes a regulatory notice where it has evidence that a small registered provider is not meeting the regulatory standards. This notice is published under those arrangements.

  2. RSH has appointed officers onto the board of Rapport on an interim basis under section 269 of the Housing and Regeneration Act 2008.

  3. More information about how RSH regulates against its standards is available in Regulating the Standards.

  4. RSH promotes a viable, efficient and well-governed social housing sector able to deliver and maintain homes of appropriate quality that meet a range of needs. It does this by undertaking robust economic regulation focusing on governance, financial viability and value for money that maintains lender confidence and protects the taxpayer. It also sets consumer standards and may take action if these standards are breached and there is a significant risk of serious detriment to tenants or potential tenants.

  5. For press office contact details, see our Media enquiries page. For general queries, please email enquiries@rsh.gov.uk or call 0300 124 5225.

Published 31 March 2023