Decision

Previous regulatory judgement: Origin Housing Limited (14 December 2022)

Updated 14 December 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Origin Housing Limited
• Regulatory code: L0871
• Publication date: 14 December 2022
• Governance grade: G1
• Viability grade: V2
• Reason for publication: Changed basis for viability grade
• Regulatory route: Stability Check

Regulatory judgement

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

The regulator has assurance that Origin Housing Limited (Origin) complies with the financial viability elements of the Governance and Viability Standard. Its financial plans are consistent with, and support, its financial strategy. Origin has an adequately funded business plan, sufficient security in place, and is forecast to continue to meet its financial covenants.

Origin continues to face risks that it needs to manage to ensure ongoing compliance. It has reduced its exposure to the housing market but its reliance on sales receipts to support the business remains a key risk. It has also identified additional asset management costs relating to fire-safety work that, together with higher inflation and interest rate pressures in the current economic environment, impact on its capacity to manage adverse events.

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

Other providers included in the judgement

Origin Housing 2 Limited

About the provider

Origins

Origin is a charitable registered provider of social housing incorporated under the Co-operative and Community Benefit Societies Act 2014. Its principal activities are the development and management of housing and the provision of care and support services.

Registered Entities

Origin is the parent and main stockholding registered entity within the group. There is a further registered entity, Origin Housing 2 Limited, which is also a social housing provider.

Unregistered Entities

There are four unregistered entities within the group. Origin Finance Limited and Origin Finance 2 plc are financing vehicles. Origin Housing Developments Limited and Origin Properties Limited undertake property development. The latter also provides management services for investment property lettings.

Geographic Spread and Scale

Origin manages around 6,500 homes and operates in 22 local authority areas across London and Hertfordshire.

Staffing and Turnover

For the year ended 31 March 2022 Origin reported turnover of £76m and had 275 full-time equivalent employees.

Development

Origin aims to deliver 1,190 new homes by 2028, mainly comprising a mix of social and affordable rent and low cost home ownership units, plus some for open market sale.

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.