Previous regulatory judgement: Prima Housing Group Limited (29 March 2023)
Updated 13 December 2023
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Prima Housing Group Limited
- Regulatory code: L1001
- Publication date: 29 March 2023
- Governance grade: G1
- Viability grade: V2
- Reason for publication: Changed basis for viability grade
- Regulatory route: In Depth Assessment
Regulatory judgement
This judgement confirms the regulator’s existing assessment of Prima Housing Group Limited’s governance and financial viability grades (G1/V2) following completion of an In Depth Assessment (IDA).
Based on evidence from the IDA, the regulator has assurance that Prima Housing Group Limited (Prima) complies with the financial viability elements of the Governance and Financial Viability Standard. Its financial plans are consistent with, and support, its financial strategy. Prima has an adequately funded business plan with sufficient security in place and is forecast to continue to meet its financial covenants.
Prima is increasing investment in its existing homes, while continuing to develop new homes. Delivering this investment, in combination with economic uncertainty in relation to inflation and interest rates, means Prima has less headroom against funder covenants and reduced capacity to respond to adverse events.
The regulator’s assessment of Prima’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 Prima’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
Prima is a community benefit society, formed in April 2022 after the consolidation of Pierhead Housing Association Limited and Leaseowe Community Homes Limited. Prima’s main strategic objective is to create good quality, safe and affordable homes.
Registered Entities
Prima is the only registered entity in the group.
Unregistered Entities
There is one unregistered entity, Prima Commercial (PHA Commercial Limited) which owns and manages commercial properties.
Geographic Spread and Scale
The provider operates predominately in Liverpool, Sefton, and The Wirral. It owns and manages around 2,900 homes.
Staffing and Turnover
At 31 March 2022 the group employed 73 full-time equivalent employees. The group turnover for the year ended 31 March 2022 was £14.2m.
Development
Prima’s latest business plan includes a total planned development of 216 homes in the next five years.
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.