Decision

Current regulatory judgement: Lincolnshire Housing Partnership Limited (13 December 2023)

Updated 13 December 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Lincolnshire Housing Partnership Limited
• Regulatory code: 4877
• Publication date: 13 December 2023
• Governance grade: G1
• Viability grade: V2
• Reason for publication: Changed basis for viability grade
• Regulatory route: Stability Check

Regulatory judgement

This regulatory judgement confirms the regulator’s existing assessment of Lincolnshire Housing Partnership Limited’s governance and financial viability grades (G1/V2).

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

LHP is increasing investment in its existing homes while also undertaking a development and sales programme, meaning its forecast financial performance is weaker than in previous years. These factors, set in the context of economic pressures including inflation and interest rates, impact on LHP’s capacity to respond to adverse events.

The regulator’s assessment of LHP’s 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 LHP’s current governance grading.

Other providers included in the judgement

None

About the provider

Origins

LHP was formed following the merger of Shoreline Housing Partnership Limited and Boston Mayflower Limited in April 2018. LHP is a charitable community benefit society, a registered provider and parent of the group. Its core business is the development and management of general needs rented housing.

Registered Entities

LHP is the only registered entity in the group.

Unregistered Entities

Boston Mayflower Finance PLC, a public limited company which is a non-trading Special Purpose vehicle for issuing notes and bonds.

Humber Homes Limited, a company limited by shares set up to deliver the completed regeneration scheme.

Speedwell Homes Limited, a wholly owned subsidiary of LHP.

Geographic Spread and Scale

LHP owns and manages around 12,500 homes, the majority are concentrated in and around Grimsby and Boston.

Staffing and Turnover

LHP employs 389 full-time equivalent staff. Its turnover for the year ended 31 March 2023 was £57.7m.

Development

LHP plans to develop around 225 homes between 2023 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.

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.