Decision

Clarion Housing Group Limited (LH4087) - Regulatory Judgement: 29 October 2025

Updated 29 October 2025

Applies to England

Our Judgement

	Grade/Judgement	Change	Date of assessment
Consumer	C2 Our judgement is that there are some weaknesses in the landlord delivering the outcomes of the consumer standards and improvement is needed.	First grading	October 2025
Governance	G1 Our judgement is that the landlord meets our governance requirements.	Assessed and unchanged	October 2025
Viability	V1 Our judgement is that the landlord meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios.	Regrade	October 2025

Reason for publication

We are publishing a regulatory judgement for Clarion Housing Group Limited (Clarion) following an inspection completed in October 2025.

This regulatory judgement confirms a consumer grade of C2, a governance grade of G1 and a financial viability regrade to V1.

Prior to this regulatory judgement, the governance and financial viability grades for Clarion were last updated in January 2025 following a stability check to confirm a G1 grade for governance and a V2 grade for financial viability. This is the first time we have issued a consumer grade in relation to this landlord.

Summary of the decision

From the evidence and assurance gained during the inspection, it is our judgement that there are some weaknesses in Clarion delivering the outcomes of the consumer standards and improvement is needed, specifically in relation to outcomes in our Safety and Quality Standard and our Transparency, Influence and Accountability Standard. Based on this assessment, we have concluded a C2 grade for Clarion.

Our judgement is that Clarion meets our governance requirements. Clarion has provided evidence to demonstrate the effectiveness of its governance arrangements and that it continues to manage the risks to its activities effectively, allowing it to deliver its strategic and charitable objectives. Based on this assessment, we have concluded a G1 grade for Clarion.

Our judgement is that Clarion meets our financial viability requirements and has the financial capacity to deal with a wide range of adverse scenarios. Clarion has a strong financial profile and its stress testing demonstrates that financial capacity is built into its business plan. Clarion has provided appropriate assurance that it has access to sufficient liquidity and has adequate funding in place. Based on this assessment, we have concluded a V1 grade for Clarion.

How we reached our judgement

We carried out an inspection of Clarion to assess how well it is delivering the outcomes of the consumer standards and meeting our governance and financial viability requirements, as part of our planned regulatory inspection programme. During the inspection, we considered all four of the consumer standards: Neighbourhood and Community Standard, Safety and Quality Standard, Tenancy Standard, and the Transparency, Influence and Accountability Standard.

During the inspection we observed board and customer committee meetings, spoke with tenants, held meetings with Clarion including its non-executive directors, interviewed staff, and reviewed a wide range of documents provided by Clarion.

Our regulatory judgement is based on a review of all the relevant information we obtained during the inspection as well as analysis of information supplied by Clarion in its regulatory returns and other regulatory engagement activity.

Summary of findings

Consumer - C2 - October 2025

Through the inspection we saw evidence that Clarion has appropriate systems in place to ensure the health and safety of tenants in their homes and associated communal areas, and effective mechanisms to give the board assurance that controls are operating effectively. Clarion has demonstrated substantial progress in the delivery of remedial actions from the fire, electrical and lift assessments it has carried out.

Clarion takes a risk-based approach to managing its high and mid-rise buildings and has arrangements in place to meet regulatory and legal obligations. It has appropriate mitigations in place to keep tenants’ homes safe while remediation works progress. We gained assurance that Clarion has a well-established process in place to manage issues relating to leaks, condensation, damp and mould and prioritises action based on tenant vulnerabilities.

Clarion uses a range of information to understand the condition of its homes, and we have assurance that its asset works programming and financial plan takes account of this knowledge. There is evidence of a robust framework of data quality controls that are operating effectively to ensure the integrity of the stock condition information that it is collecting. Clarion has a stock condition survey programme underway to refresh records at an individual property level but is managing relatively high no access rates. While these surveys progress, there is an inconsistency of its understanding of the condition of its homes across the extensive geography it operates in, and this is assessed as a weakness in meeting the outcomes of the safety and quality standard. Improvement is required to address survey no-access to ensure stock data is maintained to the intended frequency and depth, and identified non-decency is addressed. We will maintain our engagement while these plans are implemented and the survey programme achieves its planned coverage.

Clarion has evidenced that it is making significant progress in delivering an effective and efficient repairs and maintenance service. A comprehensive change programme has driven improvement in service performance for emergency and routine repairs and there are only a small number of repairs over 90 days old. A new repairs system has led to efficiency gains and improved performance on complex cases. We saw evidence of Clarion tailoring its service in response to tenant feedback. The board will need to ensure that the balance of reporting on the repairs service provides sufficient assurance on service quality and consistency across a service delivering at this scale.

In relation to the Neighbourhood and Community Standard, Clarion works internally and with relevant external partners to deter and tackle anti-social behaviour (ASB) and is committed to further review, with tenants, to maintain the effectiveness of its approach.

In line with the outcomes required by the Tenancy Standard, Clarion demonstrates impactful tenancy sustainability services, including support to reduce rent arrears. The board monitors performance through tenancy and customer-related metrics.

Clarion has demonstrated an understanding of its tenants’ vulnerabilities and diverse needs and uses this information to help design and deliver services. Clarion intends to broaden the assurance it collects on its front-line services to satisfy itself the wide range of available service adjustments are positively impacting tenant experience.

Clarion recognises aids and adaptations as a service it needs to improve. Clarion has sought tenant’s views and implemented most of the recommendations with additional staff supporting the service, however the improved outcomes for tenants are still to be demonstrated.

Clarion provides an appropriate level of accessible and relevant information to enable tenants to access services, including support and advice. Information on service performance is also shared. Clarion gathers tenants’ views through a wide range of methods, and tenants we spoke to felt supported to engage in the opportunities offered to influence and scrutinise strategies, policies and services. We saw evidence of meaningful tenant feedback and scrutiny that influenced a range of customer service improvements, including complaints and changes to the delivery of the ASB service. Clarion is introducing measures to improve reporting back to those involved tenants.

Clarion has focused on improving its arrangements to address complaints fairly, promptly and effectively, using analysis of complaints and Housing Ombudsman Service judgements to inform its approach. Early indicators show improvement in the timeliness of dealing with complaints and in tenant satisfaction measures, as well as a decrease in the number of severe maladministration cases. However, Clarion is not yet able to fully demonstrate the positive impact for tenants it expects, and key elements of its improvement strategy are yet to be implemented. Complaints handling is assessed as a weakness to delivering the outcomes of the Transparency, Influence and Accountability Standard. We will maintain our engagement whilst the intended improvement is delivered for tenants.

Governance - G1 - October 2025

We have assurance that Clarion’s governance arrangements are appropriate, and that the board and the executive have the skills and experience to manage risk and adequately control the organisation in line with its strategic objectives and deliver against our standards. Clarion’s board monitors and challenges performance against strategic targets and considers its risk appetite when making decisions. The board has robust oversight through a suite of balanced scorecard metrics, and third-line assurance through internal audit and annual deep dives. Its governance arrangements allow for active tenant scrutiny.

We gained assurance that the board proactively reviews its approach to delivering against its purpose and routinely considers alternative methods of delivering its strategic objectives. Clarion has an embedded approach to achieving value for money and it has demonstrated that the board provides robust challenge to support the organisation to deliver optimal benefits from the resources it has available.

We saw evidence that effective governance is maintained by skills-led succession planning, board member appraisals, annual internal effectiveness reviews and periodic external effectiveness reviews. Clarion has recently reviewed and updated the roles, responsibilities and accountabilities within its leadership to maintain its effectiveness within the current operational environment.

Clarion’s risk management and control framework is aligned to strategic risks. Areas for improvement are self-identified and action plans are in place.

Clarion demonstrates robust financial governance. Board reporting provides sufficient detail for the board to ensure effective oversight of financial and commercial risks that are part of its structure.

Viability – V1 - October 2025

Based on the evidence gained from the inspection we have regraded our viability judgement.

Clarion’s financial plans are consistent with, and support the delivery of, its financial strategy. Clarion has an adequately funded business plan and sufficient security in place to support its financial plans. Clarion’s audited financial statements demonstrate a financial performance that provides sufficient headroom over covenants and adequate operating surplus for the scale and nature of Clarion’s financial obligations. Clarion’s board has effective oversight of its financial position, with established internal standards underpinning board oversight and control.

Clarion’s business plan presents a forecast financial position that includes an increase in investment in existing homes; to remediate tall buildings, achieve EPC C by 2030 and net zero carbon by 2050, alongside a significant development programme. We received assurance that the risks related to these programmes are being appropriately managed.

In the context of this increased cost base and reduced exposure to sales risks, Clarion forecasts sufficient headroom against its tightest lender interest cover covenants in the medium term.

Clarion has a robust approach to stress testing led by the board and only the most severe multi-variant scenarios forecast a serious impact on the business plan. Its forecast headroom is sufficient to absorb the financial impact of downside risks against its tightest interest cover covenant.

Background to the judgement

About the landlord

Clarion is a Charitable Community Benefit Society owning around 109,000 social homes.

Clarion is the strategic parent of the group under which there are three key business streams: the landlord, Clarion Housing Association; the development company, Latimer Developments; and the charitable foundation, Clarion Futures. There are two registered entities in the group: Clarion Housing Group Limited and Clarion Housing Association Limited. Clarion Housing Association owns the social housing assets in the group.

The Clarion group includes two registered charities, six treasury vehicles, nineteen property development companies, twenty-one property maintenance and management service companies and is a member of twenty-five jointly controlled entities, owning at least 50% of each.

Clarion’s geographical footprint incorporates over 150 local authorities. Stock is more concentrated in London, the South and East of England, with over 50% of homes in 11 local authorities. The majority of these are for general needs, but it also provides homes for shared ownership, supported housing, housing for older people and leasehold management.

Clarion employs 4,167 full-time equivalent staff. Group turnover for the year ended 31 March 2025 was £1.087bn. Clarion intends to develop in excess of 20,000 homes, with the vast majority for affordable or social rent between 2025 and 2035.

Our role and regulatory approach

We regulate for a viable, efficient, and well governed social housing sector able to

deliver quality homes and services for current and future tenants.

We regulate at the landlord level to drive improvement in how landlords operate. By landlord we mean a registered provider of social housing. These can either be local authorities, or private registered providers (other organisations registered with us such as non-profit housing associations, co-operatives, or profit-making organisations).

We set standards which state outcomes that landlords must deliver. The outcomes of our standards include both the required outcomes and specific expectations we set. Where we find there are significant failures in landlords which we consider to be material to the landlord’s delivery of those outcomes, we hold them to account.

Ultimately this provides protection for tenants’ homes and services and achieves better outcomes for current and future tenants. It also contributes to a sustainable sector which can attract strong investment.

We have a different role for regulating local authorities than for other landlords. This is because we have a narrower role for local authorities and the Governance and Financial Viability Standard, and Value for Money Standard do not apply. Further detail on which standards apply to different landlords can be found on our standards page.

We assess the performance of landlords through inspections and by reviewing data that landlords are required to submit to us. In Depth Assessments (IDAs) were one of our previous assessment processes, which are now replaced by our inspections programme from 1 April 2024. We also respond where there is an issue or a potential issue that may be material to a landlord’s delivery of the outcomes of our standards. We publish regulatory judgements that describe our view of landlords’ performance with our standards. We also publish grades for landlords with more than 1,000 social housing homes.

The Housing Ombudsman deals with individual complaints. When individual complaints are referred to us, we investigate if we consider that the issue may be material to a landlord’s delivery of the outcomes of our standards.

For more information about our approach to regulation, please see Regulating the Standards.

Further information

• Regulating the standards

• Regulatory standards for landlords