Decision

London & Quadrant Housing Trust (L4517) - Regulatory Judgement: 27 August 2025

Updated 27 August 2025

Applies to England

Our Judgement

	Grade/Judgement	Change	Date of assessment
Consumer	C2 Our judgement is that there are some weaknesses in the landlord delivering the outcomes of the consumer standards and improvement is needed.	First grading	August 2025
Governance	G2 Our judgement is that the landlord meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance.	Downgrade	August 2025
Viability	V2 Our judgement is that the landlord 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.	Assessed and unchanged	August 2025

Reason for publication

We are publishing a regulatory judgement for London & Quadrant Housing Trust (L&Q) following an inspection completed in August 2025.

This regulatory judgement confirms a consumer grading of C2, a governance downgrade to G2 and a financial viability grading of V2.

Prior to this regulatory judgement, the governance and financial viability grades for L&Q were last updated in December 2023 following a stability check to confirm a G1 grade for governance and a V2 grade for financial viability. This is the first time we have issued a consumer grade in relation to this landlord.

Summary of the decision

From the evidence and assurance gained during the inspection it is our judgement that there are some weaknesses in how L&Q is delivering the outcomes of the consumer standards and improvement is needed, specifically in relation to the outcomes in our Safety and Quality Standard and Neighbourhood and Community Standard. Based on this assessment, we have concluded a C2 grade for L&Q.

Our judgement is that L&Q meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance. L&Q needs to strengthen its performance reporting to ensure appropriate board oversight and assurance, particularly in relation to delivering its plans for improving outcomes for tenants. Improvement is also needed in L&Q’s approach to assessing the effectiveness of its governance arrangements, so that it can ensure these continue to support the delivery of the organisation’s aims and objectives. Based on this assessment we have concluded a G2 downgrade for L&Q.

Our judgement is that L&Q meets our financial viability requirements. It has the financial capacity to manage a reasonable range of adverse scenarios and has access to sufficient liquidity. However, L&Q has a number of financial risks that it needs to manage, including a large-scale disposal programme. Based on this assessment, we have concluded a V2 grade for L&Q.

How we reached our judgement

We carried out an inspection of L&Q to assess how well it is delivering the outcomes of the consumer standards and meeting our governance and financial viability requirements, as part of our planned regulatory inspection programme. During the inspection, we considered all four of the consumer standards: Neighbourhood and Community Standard, Safety and Quality Standard, Tenancy Standard, and the Transparency, Influence and Accountability Standard.

During the inspection, we observed a group board meeting and a Resident Services Board meeting, spoke with tenants, held meetings with L&Q, including its non-executive directors, and reviewed a wide range of documents provided by L&Q. Our regulatory judgement is based on a review of all the relevant information we obtained during the inspection, as well as analysis of information supplied by L&Q in its regulatory returns and other regulatory engagement activity.

Summary of findings 

Consumer – C2 – August 2025

There is evidence that L&Q keeps an accurate record of the condition of its homes at an individual property level through physical surveys which includes assessing compliance with the Decent Homes Standard (DHS). Some improvement is needed in how L&Q keeps its stock condition records up to date between physical surveys by using information from a range of relevant sources such as repairs and complaints to maintain a rounded view of condition.

L&Q provided evidence-based assurance that it has appropriate systems in place to ensure the health and safety of its tenants in their homes and associated communal areas. L&Q provided assurance that it has a good understanding of its compliance with landlord health and safety requirements, and that it is delivering the actions arising from legally required health and safety assessments. L&Q also demonstrated that it has appropriate and effective systems in place to ensure the health and safety of its tenants in buildings that are managed by third parties. We received assurance that L&Q is effectively managing a significant and complex building safety programme. It has assessed all its higher risk buildings in accordance with its planned schedule and a remediation programme is underway. L&Q provided evidence that it has implemented appropriate mitigations in the interim and that these are routinely reviewed.

There is evidence that L&Q is managing the risks to its tenants from damp, mould and condensation. Some improvements are needed in how L&Q demonstrates that it is prioritising cases according to risk and how it considers the diverse needs of tenants when undertaking remediation work.

L&Q assists its tenants seeking housing adaptations to access appropriate services, but it has identified that improvements are required to ensure that services and communication are consistent across its portfolio.

During the inspection, we found evidence of some weaknesses in the provision of the repairs and maintenance service to L&Q’s tenants, particularly for non-emergency repairs. L&Q evidenced recent improvements in the service, but for its non-emergency repairs it continues to manage a small backlog and has not been meeting its own targets for a prolonged period. L&Q also has further work to do so that it can understand whether its repairs service is equitable across its core geographical areas and take appropriate action as a result.

L&Q works in partnership with appropriate partners to deter and tackle anti-social behaviour (ASB) and hate incidents in the neighbourhoods where it provides homes. It recognises that it is an area that requires improvement, particularly in relation to timeliness and regional differences in service levels between its core regions. This is reflected in a low level of tenant satisfaction. L&Q provided evidence that the steps it has taken to address this disparity are having a positive impact, but these improvements need to be sustained.

Our inspection found evidence that L&Q’s approach to lettings and allocations is transparent and meets the requirements of the Tenancy Standard. L&Q has a range of methods to promote tenancy sustainability, including supporting tenants seeking mutual exchange and providing access to financial support.

In relation to the Transparency, Influence and Accountability Standard we gained assurance that L&Q has made improvements in treating its tenants with fairness and respect following the Housing Ombudsman Service’s Special Report on L&Q in 2023. L&Q is continuing to develop its understanding of the diverse needs of its tenants and increase the level of data held. We saw examples of how service delivery is being tailored to take account of individual circumstances. L&Q provided some evidence of where it considers the performance of its services against the characteristics of its tenants, to identify if there are examples where services are not being delivered equitably.

We gained assurance that L&Q addresses complaints fairly, effectively and promptly. L&Q is taking steps to improve its complaints analysis so it can continue to use the information to help drive service improvement and outcomes for tenants.

L&Q takes tenants’ views into account in its decision making about how services are delivered, and provides a wide range of meaningful opportunities for tenants to influence and scrutinise the landlord at strategic and operational levels. Some elements of L&Q’s resident engagement activity, such as resident assemblies, are still evolving and will need to be embedded to ensure they lead to improved outcomes which can be evidenced. The service and performance information made available to tenants is accessible, transparent and supports effective scrutiny.

Governance – G2 – August 2025

Based on evidence gained from the inspection, we have assurance that L&Q meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance with the Governance and Financial Viability Standard.

We saw evidence that L&Q’s governance arrangements are effective in delivering its strategic objectives, social purpose and value for money. L&Q demonstrated strategic decision-making in line with its risk appetite and legal and regulatory obligations, seeking external advice as appropriate. L&Q provided assurance that it considers alternative options to deliver value for money and make best use of its resources.

We saw evidence of appropriate reporting on the overall delivery of L&Q’s strategy, but some improvement is needed in the quality of assurance provided to L&Q’s board that objectives have been delivered.

L&Q evidenced that there is an appropriate risk management and controls assurance framework in place, which is aligned to its strategic risks. However, we concluded that the depth and quality of board reporting on how L&Q delivers on the stock quality outcome of the Safety and Quality Standard was not fully aligned with its agreed risk appetite, and it also impacted our assurance on the effectiveness of board oversight and challenge in this area. More focused and objective reporting would support the board’s strategic risk management as well as ensure more effective scrutiny. We also concluded routine board reporting on customer facing performance areas such as repairs, damp and mould and decent homes required some improvement. We recognise that L&Q has already started to make necessary improvements to its reporting framework and our regulatory engagement with L&Q will continue while these are embedded.

L&Q has an appropriately skilled and experienced board and a structured, thorough process for developing and appraising board skills and supporting succession planning activity. However, we did not see evidence of appropriate arrangements in place for the board to assess its effectiveness and to ensure continuous improvement in L&Q’s governance. Improvement is needed so that L&Q’s board gains assurance on the annual effectiveness of governance arrangements including board and committee roles and responsibilities. L&Q commissioned an external governance effectiveness review in 2023, but it had a narrow focus and did not lead to a formal improvement plan tracked by board.

L&Q provided appropriate assurance that the quality of its financial reporting is effective and enables board to oversee its key financial risks. L&Q provided evidence of board oversight of stress testing and mitigation strategies and that these are used to inform decisions, supporting the wider control framework.

L&Q is delivering a significant change programme, focused on increasing investment in existing tenants’ homes and services, and has already identified and made changes needed to support this. We will engage with L&Q as it continues to deliver the governance improvement needed.

Viability – V2 – August 2025

Based on the evidence gained through the inspection, we have concluded that there is appropriate assurance that L&Q’s financial plans are consistent with and support its financial strategy. L&Q has appropriately evidenced that it has an adequately funded business plan and is forecast to continue to meet its financial covenants.

There are material risks within L&Q’s financial plan that it will need to manage. As it pursues a strategy of rationalisation and de-risking its business, L&Q is aiming to generate substantial surpluses from the sale of homes and non-core business activities. L&Q is also increasing investment in its existing homes, including a programme of spending on building safety and DHS related works.

We have assurance that L&Q has effective reporting and oversight in place in respect of these matters. However, the severity of material risks faced by L&Q mean that we will continue to actively monitor its financial performance and its capacity to manage adverse scenarios on an ongoing basis.

Background to the judgement

About the landlord

L&Q operates across the north west and south east of England, including London, and owns around 88,000 social housing homes.

L&Q generated turnover of £1.12bn in the year ended 31 March 2024 and employed the full-time equivalent of 3,747 staff. The group parent, L&Q Housing Trust, has nine wholly owned subsidiaries.

Over the course of the next five years, L&Q expects to have delivered around 6,000 homes.

Our role and regulatory approach

We regulate for a viable, efficient, and well governed social housing sector able to deliver quality homes and services for current and future tenants.

We regulate at the landlord level to drive improvement in how landlords operate. By landlord we mean a registered provider of social housing. These can either be local authorities, or private registered providers (other organisations registered with us such as non-profit housing associations, co-operatives, or profit-making organisations).

We set standards which state outcomes that landlords must deliver. The outcomes of our standards include both the required outcomes and specific expectations we set. Where we find there are significant failures in landlords which we consider to be material to the landlord’s delivery of those outcomes, we hold them to account. Ultimately this provides protection for tenants’ homes and services and achieves better outcomes for current and future tenants. It also contributes to a sustainable sector which can attract strong investment.

We have a different role for regulating local authorities than for other landlords. This is because we have a narrower role for local authorities and the Governance and Financial Viability Standard, and Value for Money Standard do not apply. Further detail on which standards apply to different landlords can be found on our standards page.

We assess the performance of landlords through inspections and by reviewing data that landlords are required to submit to us. In Depth Assessments (IDAs) were one of our previous assessment processes, which are now replaced by our new inspections programme from 1 April 2024. We also respond where there is an issue or a potential issue that may be material to a landlord’s delivery of the outcomes of our standards. We publish regulatory judgements that describe our view of landlords’ performance with our standards. We also publish grades for landlords with more than 1,000 social housing homes.

The Housing Ombudsman deals with individual complaints. When individual complaints are referred to us, we investigate if we consider that the issue may be material to a landlord’s delivery of the outcomes of our standards.

For more information about our approach to regulation, please see Regulating the standards.

Further information

• Regulating the standards

• Regulatory standards for landlords