Decision

Previous regulatory judgement: The Housing Plus Group Limited (30 November 2022)

Updated 15 November 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: The Housing Plus Group Limited

• Regulatory code: L4491

• 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 regulatory judgement regrades our previous published assessment of The Housing Plus Group Limited’s viability from V1 to V2 and confirms its G1 grade for governance.

The regulator has assurance that The Housing Plus Group Limited (Housing Plus) 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. Housing Plus has an adequately funded business plan, sufficient security and is forecast to continue to meet its financial covenants.

Housing Plus has significantly increased the level of investment in its existing homes, primarily to address the government’s energy efficiency targets. The combination of rising interest costs and the additional economic uncertainty in relation to inflation, has reduced the forecast headroom on its interest cover loan covenant and the available capacity to manage adverse events.

The regulator’s assessment of Housing Plus’ 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 Housing Plus’ current governance grading.

Other providers included in the judgement

Homes Plus Limited

About the provider

Origins

Housing Plus is a provider of housing and related services. The group’s three former registered subsidiaries (South Staffordshire Housing Association, Severnside Housing and Stafford & Rural Homes) were consolidated and became Homes Plus Limited in 2021.

Registered Entities

Housing Plus is the non-asset holding group parent. It has one registered subsidiary, Homes Plus Limited, which is a community benefit society and holds the group’s housing assets.

Unregistered Entities

The group contains six unregistered subsidiaries:

• Property Plus Midlands Limited is a property maintenance company providing services to the group;

• Care Plus Staffordshire Limited delivers care and support services, primarily to the residents of Homes Plus properties;

• Severn Homes Limited develops and sells properties for outright sale;

• Development Worx Limited provides design and build services to the group;

• Housing Plus Group Finance Limited is the group funding vehicle; and

• County Town Homes (Stafford) Limited is dormant and due to be dissolved in 2022/23.

Geographic Spread and Scale

At 31 March 2022, the group owned and managed around 19,600 units across Shropshire and Staffordshire.

Staffing and Turnover

Housing Plus reported a turnover of £101.5m for the year ended 31 March 2022 and employs the full-time equivalent of 867 staff.

Development

Housing Plus plans to develop around 930 units of affordable housing between 2022 and 2027.

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.