Decision

Willow Tree Housing Partnership Limited (L2424) - Regulatory Judgement: 25 February 2026

Updated 25 February 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.	Upgrade	February 2026
Governance	G2 Our judgement is that the landlord meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance.	Assessed and unchanged	February 2026
Rent	Our judgement is that the landlord has addressed the issues in the regulatory judgement dated October 2024 relating to rent setting.	New judgement	February 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	February 2026

Reason for publication

We are publishing a regulatory judgement for Willow Tree Housing Partnership Limited (Willow Tree) following a stability check and responsive engagement completed in February 2026.

This regulatory judgement upgrades our previous published assessment of Willow Tree’s consumer grade from C3 to C2 and confirms a governance grade of G2 and a financial viability grade of V2.

This regulatory judgement also confirms that Willow Tree has addressed the issues previously outlined in our regulatory judgement dated October 2024, which we assessed had amounted to serious failings in delivering the outcomes of the Rent Standard.

Summary of the decision

From the evidence and assurance gained during responsive engagement with Willow Tree we have concluded that Willow Tree has evidenced it has improved its understanding of the condition of its homes and has strengthened performance reporting. Our judgement is that some weaknesses remain in Willow Tree delivering the outcomes of the consumer standards and improvement continues to be needed in some areas, specifically in relation to outcomes in our Safety and Quality Standard and Transparency, Influence and Accountability Standard. Based on this assessment, we have concluded a C2 grade for Willow Tree.

From the stability check, there is no evidence to indicate a change in governance grade is required. Willow Tree’s governance grade remains G2.

Based on the relevant information and evidence we reviewed in carrying out the stability check, our judgement is that Willow Tree 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 a viability grade of V2 for Willow Tree.

Through our responsive engagement, Willow Tree has evidenced that it has addressed the issues relating to the Rent Standard outlined in our regulatory judgement dated October 2024. Based on this assessment, we now have sufficient assurance to remove the previous judgement relating to the Rent Standard. 

Prior to this regulatory judgement, Willow Tree’s most recent consumer grade was C3, which was issued in October 2024 following a planned regulatory inspection that also confirmed grades of G2 and V2.

How we reached our judgement

We have carried out a stability check of Willow Tree as part of our stability check programme. Our judgement about how well Willow Tree is delivering the viability outcomes of our Governance and Financial Viability Standard is based on a review of a range of documents provided by Willow Tree, as well as analysis of information supplied by Willow Tree in its regulatory returns. 

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

In addition, we undertook responsive engagement with Willow Tree that focused on its improvement strategy to address weaknesses in delivering the outcomes of the Rent Standard summarised in the regulatory judgement dated October 2024. Our responsive engagement also focused on the Consumer Standards, in particular the Safety and Quality Standard and Transparency, Influence and Accountability Standard.

Summary of findings  

Consumer – C2 – February 2026

The consumer grade for Willow Tree was last updated in October 2024 following an inspection. 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. From the evidence-based assurance gained during the inspection, it was our judgement that there were some serious failings in how Willow Tree was delivering the outcomes of the consumer standards and that significant improvements were required. Based on that assessment, we concluded a C3 grade for Willow Tree. That was the first time we had issued a consumer grade in relation to this landlord.

Following that inspection, we engaged with Willow Tree on the delivery of its improvement strategy. Through this engagement we sought to understand how it was addressing the main issues identified during our inspection, which included addressing weakness in its understanding of the condition of its homes. Willow Tree needed to improve its knowledge and understanding of its stock as it had up-to-date stock condition survey information in place for relatively few of its homes, and the scope of those surveys did not specifically provide assurance in relation to the Decent Homes Standard. At the time of the inspection we concluded that this represented a serious failing in delivering the required outcomes of the Safety and Quality Standard.

Through our responsive engagement, we have assurance that Willow Tree now has a better understanding of the condition of its homes, allowing it to identify required investment to ensure tenants live in good quality, well maintained and safe homes. However, there remains gaps in this knowledge and through our continued engagement we will seek assurance that Willow Tree increases the proportion of its homes that have up-to-date physical inspections. We have also seen improvements in reporting more widely in relation to repairs, complaints and damp and mould.

Our inspection in 2024 provided evidence-based assurance Willow Tree has appropriate systems in place to ensure the health and safety of its tenants in their homes and associated communal areas. The inspection identified weaknesses in how information on damp and mould is reported to the board, with improvements required to facilitate more proactive identification and management of damp and mould issues. We have seen improvements in this area but will continue to seek assurance that progress against identified actions continues at an appropriate pace and scale, and that this leads to improved outcomes for tenants.

The inspection in 2024 found evidence of weaknesses in the provision of an effective, efficient and timely repairs service. Willow Tree’s tenant satisfaction, complaints and performance information demonstrates that improvement is needed in this area. Through our continued engagement we have seen evidence of Willow Tree taking appropriate steps to resolve these weaknesses although improved outcomes for tenants are not yet evident. We will continue to seek assurance of progress against identified actions and that these lead to improved outcomes for tenants.

During the inspection we saw evidence of weaknesses across several areas of the Transparency, Influence and Accountability Standard. The inspection identified that tenants generally have access to limited information on service performance, which could impact the opportunities to hold their landlord to account. Through our responsive engagement we have seen Willow Tree make improvements in the service performance information shared with tenants. The inspection concluded that complaint handling performance information indicates that complaints are addressed promptly, although more work was needed by Willow Tree to ensure it uses learning from complaints to inform service delivery. We have seen improvements in this area, with Willow Tree publishing complaints reports outlining service improvements that have resulted from complaints. Willow Tree does not yet have sufficient information to understand the diverse needs of its tenants and gain assurance that its services deliver fair and equitable outcomes for tenants. We will continue to seek assurance of progress against identified actions and that these lead to improved outcomes for tenants.

We have assurance that Willow Tree meets the requirements of the Neighbourhood and Community Standard and is making improvements to the quality of information its board receives.

We have assurance that Willow Tree meets the tenure requirements of the Tenancy Standard. The inspection found evidence that Willow Tree’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.

Through our responsive engagement following our inspection, Willow Tree has evidenced it has improved its understanding of the condition of its homes and has strengthened performance reporting. However, there remain some weaknesses in Willow Tree delivering the outcomes of the consumer standards and improvement is needed, specifically in relation to outcomes in our Safety and Quality Standard and Transparency, Influence and Accountability Standard. Based on this assessment, we have concluded an upgrade to C2 for Willow Tree.

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

Governance – G2 – February 2026

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

Our findings from the inspection in October 2024 were that Willow Tree’s governance arrangements meet the requirements of the Governance and Financial Viability Standard. However, Willow Tree needs to take action to improve some aspects of its governance arrangements.

We have assurance that Willow Tree has an appropriate business planning, risk and control framework in place. However, we found evidence through the inspection that improvement is needed to increase the effectiveness of internal controls across a number of areas and to strengthen strategic oversight of risk. Through our responsive engagement with Willow Tree, we have seen evidence of the board seeking external assurance and enhancing its risk management framework.

The board has demonstrated a focus on gaining assurance in areas that pose the most significant risks to tenant outcomes. Performance on landlord health and safety compliance is well understood with arrangements in place to give the board oversight of this risk.

Through the inspection we identified weaknesses in the quality and accuracy of information held and the accuracy of regulatory returns. We gained assurance that the board is aware that there is a need for a continued focus on data quality and reporting. A key element of this involves checking information held on legacy systems and transferring it into a centralised housing management system. Improvement is also needed in controls around the accuracy of regulatory returns submitted to us. Through our responsive engagement we have seen evidence of Willow Tree making improvements in these areas.

Willow Tree was able to provide evidence that financial viability has been prioritised through robust reporting to the board and there is evidence that financial risks are being managed. Stress testing information indicates that mitigation strategies are in place.

Willow Tree demonstrated that it has assessed how it is delivering outcomes of regulatory standards and is taking action on the identified gaps. Willow Tree’s board is focused on the improvements needed and there are clearly defined improvement plans identified, against which resources have been allocated. Action has been taken to put in place post-merger assurance for essential areas, including in relation to information held on the condition of homes and in arrangements for tenants to be able to influence and scrutinise landlord services.

We continue to actively engage with Willow Tree to monitor its progress in improving its governance arrangements to ensure continued compliance with the requirements of the Governance and Financial Viability Standard.

Rent – February 2026

Our inspection in October 2024 found that there had been serious failings in Willow Tree delivering the outcomes of the Rent Standard and significant improvement was needed.

Through our responsive engagement, Willow Tree has evidenced that it has refunded the majority of affected tenants and provided them with clear communication and tailored support. Willow Tree is in the process of completing the small number of refunds outstanding. Willow Tree has been assisted by independent specialist advice and review and has strengthened its internal controls on rent setting and assurance to its board. Willow Tree has provided assurance that the issues covered by the October 2024 regulatory judgement have been satisfactorily addressed. 

Viability – V2 – February 2026

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

Willow Tree’s financial plans are consistent with and support its financial strategy. Willow Tree has an adequately funded business plan, sufficient security in place, and is forecast to continue to meet its financial covenants. 

Willow Tree does, however, face material exposures.  It is increasing its investment into existing homes, including in relation to energy efficiency works, which is putting pressure on its financial performance. Willow Tree is reliant on sales income, including from the disposal of some of its existing homes, to maintain covenant compliance. These risks impact on Willow Tree’s capacity to respond to adverse events.

The severity and timing of the material risks faced by Willow Tree means that we will continue to monitor closely its financial performance and its capacity to manage adverse scenarios on an ongoing basis. We will continue to engage with Willow Tree as it delivers its financial plans and ensures it has a financially sustainable strategy going forward.

Background to the judgement

About the landlord

Willow Tree owns and/or manages around 1,500 social housing homes across the South West of England, with the majority being in Devon and Somerset.

Willow Tree employs the full-time equivalent of 31 staff. Its turnover for the year ended 31 March 2025 was £9.8m.

Willow Tree plans to develop 56 new homes over the next five years.

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