Decision

Connexus Homes Limited (LH4353) - Regulatory Judgement: 25 March 2026

Updated 25 March 2026

Applies to England

Our Judgement

	Grade/Judgement	Change	Date of assessment
Consumer	C3 Our judgement is that there are serious failings in the landlord delivering the outcomes of the consumer standards and significant improvement is needed.	First grading	March 2026
Governance	G2 Our judgement is that the landlord meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance.	Downgrade	March 2026
Viability	V2 Our judgement is that the landlord 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.	Assessed and unchanged	March 2026

Reason for publication

We are publishing a regulatory judgement for Connexus Homes Limited (Connexus) following an inspection completed in March 2026.

This regulatory judgement confirms a consumer grade of C3, a governance downgrade of G2 and a financial viability grade of V2.

Prior to this regulatory judgement, the governance and financial viability grades for Connexus were last updated in December 2024 following a stability check which confirmed grades of G1 and V2. 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, we have concluded that there are serious failings in Connexus delivering the outcomes of the consumer standards and significant improvement is needed, specifically in relation to outcomes in our Safety and Quality Standard and Transparency Influence and Accountability Standard. Based on this assessment, we have concluded a C3 grade for Connexus.

Our judgement is that Connexus meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance. This is specifically in relation to the quality and reliability of information used to support decision making, and the need to embed recent changes designed to strengthen board effectiveness and oversight, and elements of the risk management framework. Based on this assessment we have concluded a G2 downgrade for Connexus.

Our judgement is that Connexus meets our financial viability requirements and has the financial capacity to deal with a reasonable range of adverse scenarios. However, Connexus has a weak financial profile arising from the additional investment required in its properties and needs to manage material risks linked to cost uncertainties to ensure continued compliance. Connexus has provided appropriate assurance that it has access to sufficient liquidity and adequate funding is in place. Based on this assessment, we have concluded a V2 grade for Connexus.

How we reached our judgement

We carried out an inspection of Connexus 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 a board meeting and customer scrutiny group, spoke with tenants, held meetings with Connexus including its non-executive directors, interviewed staff, and reviewed a wide range of documents provided by Connexus. 

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

Summary of findings  

Consumer – C3 – March 2026

The Safety and Quality Standard requires landlords to have an accurate, up to date and evidenced understanding of the condition of their homes that reliably informs their provision of good quality, well maintained and safe homes for tenants.

Through our inspection Connexus demonstrated it had up-to-date stock condition survey information in place for most of its homes, however it was not able to provide assurance that these surveys had consistently included an assessment of potential hazards. We identified further gaps in Connexus’ understanding of the condition of its homes, including relating to energy efficiency, as well as issues around the reliability of its information. This limited the degree of assurance provided to the board on compliance with the Decent Homes Standard.

Connexus demonstrated a high awareness of these issues and risks. It has brought forward plans to address them through an accelerated programme to survey the condition of its homes. It is also taking action to improve the quality and completeness of its information however, significant improvement is still needed. We have concluded this represents a serious failing in delivering the required outcomes of the Safety and Quality Standard.

Connexus demonstrated that it has appropriate systems in place to ensure the health and safety of tenants in their homes and communal areas. Connexus provided evidence of high levels of compliance with legal landlord health and safety obligations and that it is managing associated risks. The volume of remedial actions is generally low and issues are addressed appropriately. Damp, mould and condensation is a particular challenge for Connexus due to the age and nature of its homes, and Connexus needs to continue to strengthen its approach to this. However, Connexus was able to demonstrate it meets required timescales to investigate, identify and repair hazards like damp and mould.  

Performance information relating to the repairs and maintenance service, in combination with feedback and complaints from tenants, demonstrated that improvement is needed. More work is required for the repairs service to meet Connexus’ own targets on timeliness and increase the proportion of repairs that are fixed first time. A high proportion of complaints relate to repairs, and improvements to communication and scheduling of repairs are required to address this. Connexus is taking appropriate steps to resolve these weaknesses and is seeking to deliver future improvements through the delivery of new digital and technology solutions.

Connexus needs to make significant improvements in its understanding of the diverse needs of tenants including those arising from protected characteristics, language barriers, and additional support needs. Connexus’ current lack of information on tenant characteristics also limits its ability to assess whether its housing and landlord services deliver fair and equitable outcomes for tenants. Connexus provided evidence that it collects information about tenants’ additional needs when reporting a repair or requesting another service, resulting in services being tailored on a reactive basis. However, Connexus’ plans to address gaps in its centrally held tenant information is at an early stage. We have concluded this represents a serious failing in delivering the required outcomes of the Transparency, Influence and Accountability Standard.

Connexus’ tenant engagement arrangements have primarily drawn on a small group of highly involved individuals. We gained assurance that the work of this group covered a broad range of areas, was independent and resulted in meaningful changes to policies and service delivery. Improvement is needed to ensure all tenants have a variety of opportunities to influence the landlord. Connexus has already made progress in broadening opportunities as part of recent strategy development and provided evidence of plans to continue this in the next year.

Connexus has recognised it needs to make improvements to its complaints service to demonstrate that complaints are handled fairly, effectively and promptly and that it uses this information to help deliver service improvements and outcomes for tenants. Connexus often does not meet the timescales set out in the Housing Ombudsman’s Complaint Handling Code. Improvements to processes, resourcing and oversight have been put in place but have not yet led to significant improvements for tenants.

In relation to the Neighbourhood and Community Standard, we found evidence that Connexus works in partnership with other agencies to deter and tackle anti-social behaviour and hate incidents in the neighbourhoods where it provides social housing.

In relation to the Tenancy Standard, Connexus has demonstrated it publishes clear and accessible policies which outline its approach to tenancy management, including interventions to sustain tenancies, and tackling tenancy fraud.

We continue to actively engage with Connexus to monitor its progress in improving its delivery of the outcomes of our consumer standards.

Governance – G2 – March 2026

Based on the evidence gained from the inspection, we gained assurance that Connexus’ governance arrangements are meeting the requirements of the Governance and Financial Viability Standard. However, Connexus needs to take action to improve some aspects of its governance arrangements.

The reliability, accuracy and completeness of the information held by Connexus, and the governance around it, needs strengthening. This was particularly evident in relation to the serious failings around Connexus’ understanding of the condition of its homes and of tenants’ diverse needs. Further issues around the quality of the information held by Connexus emerged through our inspection in a range of areas.

We are assured that Connexus recognises this as an important strategic risk, which it is addressing through a new data strategy and as part of a transformation project moving from previously separate IT systems to a single system. We saw evidence of action being taken and that a high level of priority was being given to this by the board, however at the time of the inspection, the quality and reliability of the information held by Connexus was a limiting factor in its ability to make well informed decisions about investment needs and service improvements.

Connexus has clear roles, responsibilities and accountabilities within its leadership and governance structure. It has periodic governance effectiveness reviews, most recently in 2024, and we saw evidence that the recommendations from this had been implemented. There is an appropriate succession plan for the board that is regularly reviewed. There is a structured approach to appraising the skills, experience and knowledge of board members to support succession planning. 

We gained assurance that Connexus’ board sets and drives the organisation’s purpose and values and has directed the development of a clear strategy. There are measures that allow the board to scrutinise operational performance and progress in meeting its corporate objectives. However, at the time of the inspection the processes and indicators used to enable scrutiny needed further embedding to ensure oversight was effective.

Connexus’ risk management and control framework is aligned to its strategic risks. We saw evidence through our board observation, meetings with non-executive directors and the executive team, that there is an understanding of the risks facing the organisation and the controls in place to mitigate them. Some changes to the risk management framework are relatively new and have not yet demonstrated they are effective at ensuring risks are brought within appetite in a timely fashion. We gained assurance that Connexus critically interrogates the findings from internal audit with plans to strengthen its internal audit arrangements to ensure they are robust and aligned with its strategy.

Connexus has an appropriate approach to its stress testing that enables the board to understand and manage risks to its viability. Connexus stress tests a range of scenarios reflecting its risk profile, which are informed by its assets and liabilities register. We gained assurance that stress testing is integrated with wider business planning and aligned with Connexus’ risk framework, including a suite of golden rules monitored by the board and the use of early warning indicators that align to the stress testing sensitivities.

We continue to actively engage with Connexus to monitor its progress in improving its delivery of the outcomes of our governance standard.

Viability – V2 – March 2026

Based on the evidence gained through the inspection, we have concluded that there is appropriate assurance that Connexus’ financial plans are based on reasonable assumptions and support its financial strategy. Connexus has an adequately funded business plan, is forecast to continue to meet its financial covenants, and sufficient liquidity and security is in place.

There are material risks within Connexus’s financial plan that it will need to manage. Connexus is increasing its investment into existing homes to ensure Decent Homes Standard compliance, which is putting pressure on its financial performance, including forecast interest cover. The cost uncertainties associated with this additional investment, alongside exposure to the housing market arising from Connexus’s relatively high level of planned property disposals, represent significant risks.

The severity and timing of the material risks faced by Connexus means that we will continue to actively monitor Connexus’s financial performance and its capacity to manage adverse scenarios on an ongoing basis. We will continue to engage with Connexus as it delivers its financial plans and ensure it has a financially sustainable strategy going forward.

Background to the judgement

About the landlord

According to the 2025 statistical data return Connexus owns 10,899 homes in the West Midlands.

Connexus has 535 full-time equivalent employees with a turnover for the group of £82m at 31 March 2025.

Connexus’ development programme is to deliver 978 new homes over the next seven years.

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