Decision

Sanctuary Housing Association (L0247): Regulatory Judgement - 27 May 2026

Updated 27 May 2026

Applies to England

Our Judgement

	Grade/Judgement	Change	Date of assessment
Consumer	C1 Our judgement is that overall the landlord is delivering the outcomes of the consumer standards. The landlord has demonstrated that it identifies when issues occur and puts plans in place to remedy and minimise recurrence.	Upgrade	May 2026
Governance	G1 Our judgement is that the landlord meets our governance requirements.	Based on previous assessment	November 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.	Based on previous assessment	November 2025

Reason for publication

We are publishing a regulatory judgement for Sanctuary Housing Association (Sanctuary) following responsive engagement completed in May 2026.

This regulatory judgement confirms a consumer upgrade to C1, a governance grade of G1 and a financial viability grade of V2.

Prior to this regulatory judgement, the governance and financial viability grades for Sanctuary were last updated in November 2025 following a stability check to confirm grades of G1 and V2. Sanctuary previously had a consumer grade of C2 from an inspection completed in January 2025.

Summary of the decision

Following an inspection completed in January 2025 our subsequent responsive engagement with Sanctuary focused on its progress in improving its delivery of the outcomes of our consumer standards. We have concluded that Sanctuary is delivering the outcomes of the consumer standards. Sanctuary has made improvements to its repairs service and has provided evidence that it is delivering an effective, efficient and timely repairs service. Based on this assessment, we have concluded a C1 upgrade for Sanctuary.

Our judgement is that Sanctuary meets our governance requirements. Based on our previous assessment, Sanctuary’s governance grade remains G1.

Our judgement is that Sanctuary meets our viability requirements and has the financial capacity to deal with a reasonable range of adverse scenarios. Based on our previous assessment, Sanctuary’s viability grade remains V2.

How we reached our judgement

We carried out an inspection of Sanctuary, which concluded in January 2025, to assess how well Sanctuary 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 board meeting, spoke with tenants, held meetings with Sanctuary including its non-executive directors, and reviewed a wide range of documents provided by Sanctuary.

Following the inspection, we engaged with Sanctuary to understand how it was addressing the issues identified during our inspection relating to the outcomes of the Safety and Quality Standard. This responsive engagement included discussions with Sanctuary and reviewing evidence provided by Sanctuary relating to its repairs service. The evidence demonstrated improvements in the delivery of Sanctuary’s repairs service.

Our regulatory judgement is based on all the relevant information we obtained during the earlier inspection, subsequent responsive engagement and an analysis of information supplied by Sanctuary in its regulatory returns.

In confirming Sanctuary’s governance grade as part of the stability check completed in November 2025, our work was limited to verifying that the information contained in its regulatory returns did not appear inconsistent with its existing published governance grade following the inspection that concluded in January 2025.

Our judgement about how well Sanctuary is delivering the viability outcomes of our Governance and Financial Viability Standard, as part of the stability check completed in November 2025, is based on a review of a range of documents provided by Sanctuary, as well as analysis of information supplied by Sanctuary in its regulatory returns.

Summary of findings  

Consumer – C1 – May 2026

During our inspection, completed in January 2025, Sanctuary provided evidence that it understands the condition of its homes and that this informs its provision of good quality, well maintained and safe homes for tenants. This includes ensuring its homes meet the Decent Homes Standard. Sanctuary provided evidence that it has appropriate systems and processes for ensuring the health and safety of its tenants in their homes and communal areas.

However, weaknesses were identified in the provision of an effective, efficient and timely repairs and maintenance service, and improvements were needed to deliver the outcomes of the Safety and Quality Standard. This was seen through tenant satisfaction levels, performance information and complaints. In particular, there was more work for Sanctuary to do so that it could meet its own repairs timescales for non-urgent works while responding effectively to tenant vulnerabilities.

While Sanctuary had already initiated improvements, including a new IT system and operating model, it was too early to see the required outcomes being delivered for tenants. 

Through our subsequent responsive engagement, we have assurance that Sanctuary’s repairs service is now delivering the required outcomes for tenants. Sanctuary provided evidence that it has improved the performance of its repairs service and customer satisfaction in this area has increased.

We have reviewed Sanctuary’s performance information and regulatory returns and gained assurance that this information is consistent with an assessment of a consumer grade of C1.

At the time of our inspection in January 2025, Sanctuary provided assurance that it is delivering the outcomes of the Neighbourhood and Community Standard, including through its partnership working with other organisations to deter and tackle anti-social behaviour and hate incidents and promote wellbeing. We also saw evidence that it is allocating and letting its homes in a fair and transparent way and supporting its tenants to maintain their tenancy.

During our inspection Sanctuary demonstrated that it is delivering the required outcomes of the Transparency, Influence and Accountability Standard. Tenants have a wide range of opportunities to influence and scrutinise strategies, policies and services and we saw evidence that feedback from tenants has directly and positively impacted service delivery. Tenants can access services through a range of routes at times that suit them, and information held on its vulnerable customers allows services to be tailored accordingly.

We saw evidence that Sanctuary uses the information it holds about the diverse needs of its tenants to assess whether housing and landlord services deliver equitable outcomes. This is underpinned by its outcome-focused reporting framework. Sanctuary also provides tenants with accessible information about its performance and services.

Governance – G1 – November 2025

There was no evidence from the stability check completed in November 2025 to indicate that a change in governance grade was required. Prior to this stability check, we issued a regulatory judgement in January 2025 following a programmed inspection of Sanctuary. Below are findings of that judgement about Sanctuary’s delivery of our governance requirements.

Based on evidence gained from the inspection we have assurance that Sanctuary’s governance arrangements are effective in delivering its strategic objectives, social purpose and value for money. It demonstrated that its actions are consistent with its code of governance and its legal and regulatory obligations, seeking external advice as appropriate. It provided evidence that it has an effective business planning, risk management and control framework, with a good understanding of its risk profile and mitigations.

Sanctuary’s stress testing meets the requirements of the Governance and Financial Viability Standard and demonstrates that it has the financial capacity to withstand a reasonable range of adverse scenarios. Mitigating actions are credible, developed and understood and the board is fully engaged in Sanctuary’s stress testing and mitigation planning.

We saw evidence that Sanctuary has a skilled and independent group board, that actively seeks assurance in relation to group activities and financial viability and effectively scrutinises its performance. It is supported by an appropriate committee structure, providing further oversight in relation to the delivery of outcomes for tenants under our consumer standards.

Viability – V2 – November 2025

Based on evidence gained from the stability check completed in November 2025, we have assurance that Sanctuary meets the viability requirements of the Governance and Financial Viability Standard.

Sanctuary’s financial plans are consistent with, and support, its financial strategy. Sanctuary has access to sufficient liquidity, an adequately funded business plan and is forecasting to continue to meet its financial covenants.

Sanctuary continues to meet our viability requirements and has financial capability to deal with adverse scenarios. Sanctuary’s financial plan is based on the delivery of its strategy, which involves disposing of assets that are not central to its purpose.

Transformation and integration programmes are in place to generate efficiency savings following the addition of social housing providers into the group in 2023 and 2024. Sanctuary is also increasing investment into its existing homes including fire remediation.

Sanctuary continues to develop new homes, including those for outright sale which exposes it to housing market risk. Sanctuary’s stress testing demonstrates it has the financial capacity in the business plan to mitigate a reasonable range of adverse scenarios, but it will need to manage these material risks.

Background to the judgement

About the landlord

According to the 2025 statistical data return Sanctuary owns 85,765 social homes in England across 238 local authorities.

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 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

Related documents

• Decent Homes Standard