Previous regulatory judgement: Places for People Group Limited (15 November 2022)
Updated 13 December 2023
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Places for People Group Limited
- Regulatory code: L4236
- Publication date: 15 November 2022
- 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 assessment of Places for People Group 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 reactive engagement, the regulator has assurance that Places for People Group Limited (Places for People) complies 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. Places for People has an adequately funded business plan with sufficient security in place.
Places for People has increased investment in its existing homes and expects to make further investment over the next few years while also continuing to develop new homes. Providing for this significant investment, in combination with the current economic uncertainty in relation to inflation and interest rates, reduces Places for People’s capacity to respond to adverse events.
The regulator’s assessment of Places for People’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 Places for People’s current governance grading.
Other providers included in the judgement
Chorus Homes Group Limited, Chorus Homes Limited, Cotman Housing Association Limited, Derwent Community Housing Association Limited, Derwent Housing Association Limited, Places for People Homes Limited, and Places for People Living+ Limited
About the provider
Origins
Places for People is a company limited by guarantee, and the parent of the group.
Registered Entities
Places for People has seven registered subsidiaries;
- Chorus Homes Group Limited;
- Chorus Homes Limited;
- Cotman Housing Association Limited;
- Derwent Community Housing Association Limited;
- Derwent Housing Association Limited;
- Places for People Homes Limited; and
- Places for People Living+ Limited.
The group also includes Castle Rock Edinvar Housing Association Ltd, registered with the Scottish Housing Regulator.
Unregistered Entities
Places for People has 134 unregistered subsidiaries. These are primarily held under Places for People Ventures Limited, where activities include housing development, student accommodation, property services, tenant services, and the operating and management of leisure centres and retirement properties.
The unregistered subsidiaries also include PFP Capital Limited, a real estate fund manager, and three public limited companies that focus on financing and treasury functions: Places for People Treasury PLC, Places for People Capital Markets PLC, and Places for People Finance PLC.
The group also has an interest in 38 joint ventures.
Geographic Spread and Scale
The group operates across the United Kingdom with stock in over 200 local authority areas.
It owns and manages around 73,000 homes. The majority of these are for general needs, but it also provides homes for shared ownership, supported housing, housing for older people and leasehold management.
Staffing and Turnover
The group employs the full-time equivalent of approximately 5,732 staff. Its turnover for the year ended 31 March 2022 was £849.9m.
Development
Places for People is an investment partner with the Greater London Authority and a Homes England Strategic Partner with plans for the development of 11,000 homes by 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. |
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.