Previous regulatory judgement: Coastline Housing Limited (30 November 2022)
Updated 17 January 2024
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Coastline Housing Limited
- Regulatory code: LH4165
- Publication date: 30 November 2022
- Governance grade: G1
- Viability grade: V2
- Reason for publication: Viability regrade
- Regulatory route: Stability Check and Reactive Engagement
Regulatory judgement
This judgement regrades our previous published judgement of Coastline Housing Limited’s viability grade from V1 to V2 and confirms its existing G1 grade for governance.
The regulator has assurance that Coastline Housing Limited (Coastline) is compliant with the financial viability elements of the Governance and Financial Viability Standard and that its financial plans are consistent with, and support, its financial strategy. Coastline has an adequately funded business plan, sufficient security, and is forecast to continue to meet its financial covenants.
Coastline needs to manage material exposures. It is forecasting increased stock investment and energy efficiency costs, delivery of its development programme, and is carrying a proportion of variable rate debt. These factors, together with higher inflation and interest rate pressures in the current economic environment, weaken Coastline’s interest cover position and its capacity to manage adverse events.
The regulator’s assessment of Coastline’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. On the basis of the Stability Check, the regulator has concluded that there is no evidence to indicate a change to Coastline’s current governance grading.
Other providers included in the judgement
None
About the provider
Origins
Coastline is a registered charity. It was incorporated in 1996 following a stock transfer from Kerrier District Council.
Its primary objective is to provide affordable housing for people on low incomes.
Registered Entities
Coastline is the only registered entity.
Unregistered Entities
There are four unregistered entities within the group structure:
- Coastline Services Limited is a building maintenance and grounds contractor;
- Coastline Design and Build Limited is a design and build contractor;
- Coastline Homes Limited is a design, construction and sale of residential housing contractor; and
- Coastline Care Limited is dormant.
Geographic Spread and Scale
Coastline provides social housing across Cornwall.
Staffing and Turnover
Coastline has 289 full-time equivalent employees. It reported turnover of £38.5m in the year ended 31 March 2022.
Development
Coastline intends to develop 960 units over the next four 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. |
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.