Decision

Sovereign Network Group (4837) - Regulatory Judgement: 28 January 2026

Updated 28 January 2026

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.	Based on previous assessment	May 2025
Governance	G1 Our judgement is that the landlord meets our governance requirements.	Assessed and unchanged	January 2026
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	January 2026

Reason for publication

We are publishing a regulatory judgement for Sovereign Network Group (SNG) following a stability check completed in January 2026.

This regulatory judgement confirms a governance grade of G1 and a financial viability grade of V2. SNG has a consumer grade of C2 from a planned inspection completed in May 2025.

Summary of the decision

Based on the relevant information and evidence we reviewed in carrying out the stability check, our judgement is that SNG meets our viability requirements and has the financial capacity to deal with a reasonable range of adverse scenarios. However, it needs to manage material risks to ensure continued compliance. We have therefore concluded the landlord’s grade is unchanged and issue a V2 grade for SNG.

From the stability check, there is no evidence to indicate a change in governance grade is required. SNG’s governance grade remains G1.

This regulatory judgement is based on a stability check which did not include a reassessment of SNG’s delivery of the outcomes of our consumer standards.

Prior to this regulatory judgement, the landlord’s most recent consumer, governance and financial viability grades were C2, G1 and V2, which were issued in May 2025 following an inspection.

During the inspection, we considered all four of the consumer standards: the Neighbourhood and Community Standard, the Safety and Quality Standard, the Tenancy Standard, and the Transparency, Influence and Accountability Standard.  

During the inspection we observed a board meeting and customer influence panel, spoke with tenants, held meetings with SNG and its non-executive directors, and reviewed a wide range of documents provided by SNG.

How we reached our judgement 

We carried out a stability check of SNG as part of our annual stability check programme.

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

In confirming SNG’s governance grade as part of the stability check, our work was limited to verifying that the information contained in SNG’s regulatory returns did not appear inconsistent with its existing published governance grade.

Our stability checks do not assess a landlord’s delivery of the outcomes of our consumer standards.

Summary of findings

Consumer - C2 - May 2025

Below are the findings of our most recent regulatory judgement about SNG’s delivery of the outcomes of our consumer standards, which assessed SNG’s consumer grade as C2. The regulatory judgement was issued in May 2025 following a programmed inspection.

SNG has provided evidence-based assurance that it has appropriate systems in place to ensure the health and safety of tenants in their homes and communal areas.

There is evidence that SNG has accurate records of the condition of its homes based on an accelerated stock condition programme of physical surveys following the merger and has a process in place for keeping this information up to date. SNG has demonstrated that it uses this information on the quality and safety of its homes to inform decisions on future investment to maintain and improve conditions.

We found evidence of weaknesses in the provision of an effective, efficient and timely repairs service. Tenant satisfaction, complaints and performance information demonstrated that the service is improving, but is not yet at target levels and continued, consistent improvement is required for us to see sufficient evidence of improved outcomes for tenants. We have assurance that SNG has appropriate plans in place to deliver the required improvements. Through our ongoing engagement we will continue to seek assurance from SNG that sufficient progress is being made to ensure that outcomes for tenants are improved.

We have assurance that SNG is putting measures in place to ensure complaints are addressed fairly, effectively and promptly, and that it is taking action to address increased levels of complaints. We have evidence that SNG undertakes work to understand why complaints are made and to use any learning to improve the experience for tenants raising complaints. However, SNG has not yet been able to meet complaints handling timescales, due in part to the weaknesses in its repairs service. We will continue to seek assurance from SNG on its progress against its improvement plans and that it is delivering the improvements required for tenants.

In relation to the Neighbourhood and Community Standard, SNG demonstrated it works with local partners to deter and tackle anti-social behaviour and hate incidents in the communities it has homes. Where performance does not meet expectations SNG seeks to learn from this and make improvements in services to tenants.

Through our engagement we saw evidence that SNG treats tenants with fairness and respect, with arrangements to deliver fair access to and equitable outcomes of its services. SNG has comprehensive information about its tenants, including protected characteristics, and is now seeking to gain further insight from this information to improve its services and address regional differences.

SNG provides a range of opportunities for tenants to influence and scrutinise its strategies, policies and services. SNG takes tenants’ views into account in decision-making and provides information about landlord services, performance, and how complaints are addressed. The approach to tenant scrutiny has been refreshed following the merger and a newly formed panel is in place, supported by other engagement mechanisms. This is in its early stages, and therefore we were unable to evidence the effectiveness of the new customer influence and scrutiny arrangements.

Our inspection found evidence that SNG’s approach to lettings and allocations is transparent, and that measures are in place to ensure terms of tenancy are appropriate and meet the needs of tenants. There are a range of measures in place to support tenancy sustainment including successfully helping tenants to access financial support.   

We continue to actively engage with SNG to monitor its progress in improving its delivery of the outcomes of our consumer standards.

Governance - G1 - January 2026

From the stability check, there is no evidence to indicate that a change in governance grade is required.

Prior to this regulatory judgement, we issued a regulatory judgement in May 2025 following a programmed inspection with SNG. Below are the findings in that judgement about SNG’s delivery of our governance requirements.

Based on evidence gained through the inspection, there is assurance that SNG’s governance arrangements enable it to effectively manage its risks and adequately control the organisation, allowing it to deliver its objectives. SNG’s board demonstrated that it provides challenge on performance against the organisation’s strategic objectives and consideration of risk appetite in strategic decision making.

SNG has provided evidence that it has an effective business planning, risk management and control framework, with a good understanding of its risk profile, stress testing and mitigations. We have assurance that key risks are being managed effectively, including in relation to stock investment, development, and building safety and compliance. SNG is working to ensure it can consistently report appropriate levels of assurance for the merged organisation. We saw evidence that SNG uses stress testing to identify emerging risks and inform decision-making as part of the wider risk management framework.

SNG has provided appropriate assurance that its board proactively reviews its approach to delivering against its purpose and regularly considers alternative options to ensure it is achieving value for money in making best use of resources.

SNG was able to provide evidence that it has established and maintains clear roles, responsibilities and accountabilities within its leadership and governance structure. We saw evidence that reporting to board provides sufficient detail to ensure effective oversight across the group. Continuing governance improvement is evidenced through in-depth periodic external governance reviews and risk deep-dives. 

Board members’ skills, experience and knowledge are aligned with the activities of the organisation, and there is a structured approach to developing and appraising skills to support succession planning. We saw evidence of this through board observation, meetings with non-executive directors and the executive team.

Viability - V2 - January 2026

Based on evidence gained from the stability check, we have assurance that SNG meets the viability requirements of the Governance and Financial Viability Standard.

SNG’s financial plans are consistent with and support its financial strategy. SNG 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 adverse scenarios.

However, there are material financial exposures that must be managed for SNG to remain compliant with lenders’ covenants and its own internal targets. SNG continues to increase investment in its existing homes, including building safety works, as well as delivering a large development programme that is partly delivered through joint ventures and includes a significant sales programme. In addition, the strategic decision to dispose of relatively high levels of non-core and poorly performing stock continues to be reflected in the plan. SNG therefore has exposures to the housing market and is reliant upon surpluses generated from its sales to achieve covenant compliance. SNG also has a material transformation and integration programme to deliver.

We have assurance that SNG has reporting and oversight mechanisms in place to manage the risks and track the performance of its development programme and property sales. However, when set in the context of economic pressures, the above factors impact on SNG’s capacity to respond to adverse events. The severity and timing of material risks faced by SNG mean that we will continue to closely monitor its financial performance and its capacity to manage adverse scenarios on an ongoing basis.

Background to the judgement

About the landlord

According to the 2025 statistical data return SNG owns 77,929 homes in London, Hertford and across the south and the south west of England.

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