Decision

Previous regulatory judgement: Great Places Housing Group Limited (14 December 2022)

Updated 13 December 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Great Places Housing Group Limited

• Regulatory code: L4465

• Publication date: 14 December 2022

• Governance grade: G1

• Viability grade: V2

• Reason for publication: Viability regrade

• Regulatory route: Stability Check and Reactive Engagement

Regulatory judgement

This regulatory judgement regrades our previous assessment of Great Places Housing Group Limited’s financial viability grade from V1 to V2 and confirms its existing G1 grade for governance.

The regulator continues to have assurance that Great Places Housing Group Limited (Great Places) complies 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. Great Places has an adequately funded business plan with sufficient security in place.

Great Places forecasts to significantly increase its drawn debt to fund its development programme. It continues to develop new homes for sale and consequently has a material financial exposure to the housing market. Delivering planned investment and sales, in combination with the current economic uncertainty in relation to inflation and interest rates, reduces Great Places’ capacity to respond to adverse events.

The regulator’s assessment of Great Places’ 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 Great Places’ current governance grading.

Other providers included in the judgement

Great Places Housing Association Limited and Plumlife Homes Limited

About the provider

Origins

Great Places is a non-charitable community benefit society. Great Places is the registered parent of the group and its main strategic objective is the development and management of affordable housing and properties for sale.

Registered Entities

Great Places has two registered subsidiaries, Great Places Housing Association Limited and Plumlife Homes Limited.

Unregistered Entities

Great Places has two unregistered subsidiaries:

• Cube Homes Limited is a company limited by shares that develops units for outright sale and market rent; and

• Terra Nova Developments Limited is a company limited by shares that undertakes design and build contracts for the group.

Geographic Spread and Scale

Great Places operates across the North West with stock in 41 local authority areas. It owns and manages around 25,000 homes. 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.

Staffing and Turnover

Great Places employs the full-time equivalent of approximately 771 staff. Its turnover for the year ended 31 March 2022 was £166m.

Development

Great Places is a Homes England Strategic Partner with plans to develop 11,000 homes in the ten-year period to 2030.

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.