RSH takes enforcement action against St Andrews Community Housing Limited and Kinsman Housing Limited following continued breaches of the regulatory standards
RSH is using its powers to make St Andrews Community Housing and Kinsman Housing commission independent reviews to address each of their persistent and serious cases of non-compliance
The Regulator of Social Housing has served enforcement notices on St Andrews Community Housing Limited (St Andrews Community Housing) and Kinsman Housing Limited (Kinsman Housing).
RSH is using its powers to make St Andrews Community Housing and Kinsman Housing commission independent reviews to address each of their persistent and serious cases of non-compliance with regulatory standards. Each provider must provide clear action plans with timescales to RSH following the reviews, and must also engage with RSH before acquiring any new homes.
St Andrews Community Housing and Kinsman Housing, both of which are small providers, are non-compliant with the regulator’s economic standards. Kinsman Housing is also in breach of the regulator’s consumer standards.
St Andrews Community Housing and Kinsman Housing each own and manage social homes under arrangements which give material controls and all beneficial interest to a third party. The regulator continues to have serious concerns about weaknesses in each provider’s governance, and that each has arrangements which inappropriately advance third party interests. The regulator also has serious concerns about the ability of each provider to manage risks to ensure their long-term viability and ability to protect their social homes.
In addition, Kinsman Housing has failed to assure RSH that it has addressed issues relating to fire safety in some of its homes.
RSH expects providers to take prompt and effective action to address breaches of regulatory standards, but St Andrews Community Housing and Kinsman Housing have each failed to do so.
Harold Brown, RSH’s Senior Assistant Director for Enforcement and Investigations, said:
St Andrews Community Housing and Kinsman Housing have both continually failed to address the issues we identified, including their poor governance and property arrangements which have inappropriately advanced the interests of third party investors.
This is unacceptable. We are using our enforcement powers to require each of them to address their failures and return to compliance. They must act promptly to put things right and, if necessary, we will consider using further powers.
ENDS
Notes to editors
- A registered provider is responsible for ensuring that it manages itself effectively, achieves the standards set by the regulator, and engages positively with the regulator’s regulatory framework. Where a failure against a standard or other problem has been identified, the regulator expects providers to respond in a prompt and effective manner. It may be necessary for the regulator to step in and exercise its powers under S219 of the Housing and Regeneration Act 2008 (the Act) when a provider fails to do so.
- Sections 219 to 225 of the Act allow the regulator to require a registered provider to take specified action to resolve a specified failure or other problem.
- Where the regulator considers such a requirement necessary it will issue an enforcement notice. The regulator has published Guidance on the regulator’s approach to intervention, enforcement and use of powers.
- Registered providers of social housing are required to meet Regulatory Standards which are explained in our approach to Regulating the Standards.
- St Andrews Community Housing Limited and Kinsman Housing Limited are both small providers with fewer than 1,000 homes, and therefore do not have governance and financial viability grades.
- When a small provider breaches the regulator’s standards, the regulator publishes a regulatory notice. RSH published regulatory notices for St Andrews Community Housing Limited and Kinsman Housing Limited on 19 December 2018 and 28 November 2018 respectively, following breaches of the economic standards. RSH also published a further regulatory notice for Kinsman Housing Limited on 13 March 2019 following a breach of the consumer standards.
- 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.
- For press office contact details, see our Media enquiries page. For general queries, please email enquiries@rsh.gov.uk or call 0300 124 5225.