Current regulatory judgement: Hightown Housing Association Limited (27 March 2024)
Updated 27 March 2024
Applies to England
© Crown copyright 2024
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/regulatory-judgement-hightown-housing-association-limited/current-regulatory-judgement-hightown-housing-association-limited-27-march-2024
RSH Narrative Regulatory Judgement
- Provider: Hightown Housing Association Limited
- Regulatory code: L2179
- Publication date: 27 March 2024
- 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 Hightown Housing Association Limited’s governance and financial viability grades (G1/V2), following completion of an In Depth Assessment (IDA).
Based on evidence gained from the IDA, the regulator has assurance that Hightown Housing Association Limited (Hightown) continues to meet the financial viability elements of the Governance and Financial Viability Standard and that its financial plans are consistent with, and support, its financial strategy. Hightown has an adequately funded business plan, sufficient security, and is forecast to continue to meet its financial covenants.
Hightown needs to manage risks relating to its variable rate debt and refinancing, combined with an ongoing requirement for new debt to deliver its development programme. These factors, together with higher inflation in the current economic environment, reduce Hightown’s capacity to respond to adverse events.
The regulator’s assessment of Hightown’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 Hightown’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
Hightown is a charitable community benefit society. It manages and develops social and affordable rented housing and provides supported housing and care services.
Registered Entities
Hightown is the only registered entity.
Unregistered Entities
There are no unregistered entities.
Geographic Spread and Scale
Hightown operates mainly in Hertfordshire, Bedfordshire, and Buckinghamshire. It owns and manages around 8,800 homes.
Staffing and Turnover
Hightown has around 645 full-time equivalent employees. It reported a turnover of £111.9m for the year ended 31 March 2023.
Development
Hightown aims to develop around 350 homes a year over the next three 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.