Decision

Previous regulatory judgement: One Manchester Limited (22 February 2023)

Updated 29 November 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: One Manchester Limited
• Regulatory code: 4808
• Publication date: 22 February 2023
• 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 One Manchester Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.

Based on evidence gained from a Stability Check and through Reactive Engagement, the regulator has assurance that One Manchester Limited (One Manchester) continues to comply with the financial viability elements of the Governance and Financial Viability Standard. One Manchester 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.

One Manchester is significantly increasing its investment in its existing homes. This increase, coupled with economic uncertainty in relation to inflation, interest rates and rent increases, means that One Manchester has weakened interest cover ratios and reduced capacity to respond to adverse events.

The regulator’s assessment of One Manchester’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. Since the last In Depth Assessment, One Manchester has identified and addressed a number of governance issues. Based on the evidence from our Reactive Engagement and the Stability Check, the regulator has assurance that One Manchester’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

One Manchester is a charitable society registered under the Co-operative and Community Benefit Societies Act 2014. One Manchester is the parent of a group that comprises three unregistered legal entities. The group’s main activities relate to the management of social housing, including a small amount of housing for older people, as well as the development of new homes.

Registered Entities

One Manchester is the only registered entity in the group.

Unregistered Entities

• One Manchester Treasury Limited, a Funding vehicle;

• One Manchester Property Limited, a Property Development vehicle; and

• One Manchester Developments Limited, a Property Development vehicle.

Geographic Spread and Scale

One Manchester operates solely in Manchester, owning approximately 11,900 units in the area.

Staffing and Turnover

One Manchester employs 448 full-time equivalent employees and recorded a turnover of £63.4m in 2021/22.

Development

One Manchester is seeking to develop a further 1,500 units in the area over the first ten years of its business plan.

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.