Decision

Current regulatory judgement: Irwell Valley Housing Association Limited (25 October 2023)

Updated 25 October 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Irwell Valley Housing Association Limited

• Regulatory code: L0061

• Publication date: 25 October 2023

• Governance grade: G1

• Viability grade: V2

• Reason for publication: Changed basis for viability grade

• Regulatory route: In Depth Assessment

Regulatory judgement

This regulatory judgement confirms the regulator’s existing assessment of Irwell Valley Housing Association Limited’s governance and financial viability grades (G1/V2) following completion of an In Depth Assessment (IDA).

The regulator has assurance that Irwell Valley Housing Association Limited (Irwell Valley) continues to comply 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. Irwell Valley has an adequately funded business plan, sufficient security in place and is forecast to continue to meet its financial covenants under a reasonable range of scenarios.

Irwell Valley is investing in its existing homes including building safety and energy efficiency work, while also continuing to develop new homes. These factors weaken its financial performance, and when set in the context of economic pressures including inflation and interest rates, impact on Irwell Valley’s capacity to respond to adverse events.

The regulator’s assessment of Irwell Valley’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 Irwell Valley’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

Irwell Valley is a charitable community benefit society which manages and develops social housing.

Registered Entities

Irwell Valley is the only registered entity.

Unregistered Entities

Irwell Valley Developments Limited is the sole unregistered entity in the group. It is a wholly owned company limited by shares which provides development services to the parent.

Geographic Spread and Scale

Irwell Valley owns and manages around 7,800 homes across 10 local authority areas in Greater Manchester.

Staffing and Turnover

Irwell Valley reported turnover of £39.3m for the year ended 31 March 2023 and employs the full-time equivalent of 256 staff.

Development

Irwell Valley intends to develop 734 new affordable homes by 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.

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.