Decision

Worthing Homes Limited (LH4208) - Regulatory Judgement: 15 April 2026

Updated 15 April 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.	First grading	April 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.	Downgrade	April 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	April 2026

Reason for publication

We are publishing a regulatory judgement for Worthing Homes Limited (Worthing Homes) following an inspection completed in April 2026.

The regulatory judgement confirms a consumer grade of C2, a governance downgrade to G2, and a financial viability grade of V2.

Prior to this regulatory judgement, the governance and financial viability grades for Worthing Homes were last updated in November 2024 following a stability check to confirm grades of G1 and V2. This is the first time we have issued a consumer grade in relation to this landlord.

Summary of the decision

From the evidence and assurance gained during the inspection, it is our judgement that there are some weaknesses in Worthing Homes’ delivery of the outcomes of the consumer standards and improvement is needed, specifically in relation to the outcomes of the Safety and Quality Standard and the Transparency, Influence and Accountability Standard. Based on this assessment, we have concluded a C2 grade for Worthing Homes.

Our judgement is that Worthing Homes meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance. Specifically, we observed weaknesses in oversight of data quality, procurement and contract management and the need to strengthen board effectiveness in managing risks. Based on this assessment we have concluded a G2 downgrade for Worthing Homes.

Our judgement is that Worthing Homes meets our financial viability requirements and has the financial capacity to deal with a reasonable range of adverse scenarios. It does need to manage material risks to ensure continued compliance including the risk of increased repairs costs, along with a sales programme making up an increased proportion of its overall surplus. Worthing Homes has provided appropriate assurance that it has access to sufficient liquidity and adequate funding in place. Based on this assessment, we have concluded a V2 grade for Worthing Homes.

How we reached our judgement

We carried out an inspection of Worthing Homes to assess how well it 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: 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 a tenant scrutiny panel, spoke with tenants, held meetings with Worthing Homes including with its non-executive directors, and reviewed a wide range of documents provided by Worthing Homes.

Our regulatory judgement is based on all the relevant information we obtained during the inspection, as well as analysis of information supplied by Worthing Homes through its regulatory returns and other regulatory engagement activity.

Summary of findings

Consumer – C2 – April 2026

During our inspection, we found that Worthing Homes is meeting its landlord health and safety obligations in most areas, however we saw evidence of areas where improvements are required to ensure Worthing Homes continues to manage all associated risks, including the quality of its information. Our inspection highlighted that Worthing Homes has homes in areas with a high radon concentration, but that full safety checks had not been undertaken. There is assurance that Worthing Homes has begun taking appropriate steps to understand and address any associated risks. Worthing Homes is taking action to improve the quality of its information on the safety of its homes through the implementation of a new system. However, the accuracy and completeness of this information has been a reoccurring theme in recent internal audit reports.

Through our inspection Worthing Homes demonstrated it has a programme in place to gain an accurate and up to date record of the condition of its homes with a high proportion physically inspected, along with good levels of both internal and external validation. However, the inspection found evidence of some gaps regarding the reliability of its information on its homes. We also found evidence that its information on the performance of the responsive repairs service needs improvement. Worthing Homes has taken actions, including appointing a new contractor, which are expected to enhance repair outcomes for tenants and ensure its service is efficient, effective, and timely. This work is still in relatively early stages and will need continued oversight to ensure expected outcomes are delivered.

In relation to the Transparency, Influence and Accountability Standard, we found evidence that Worthing Homes is taking action to ensure that its tenants are treated with fairness and respect. Tenants’ views are taken into account in decisions about how services are delivered, and there is clear communication on how tenants’ views have been considered. Worthing Homes has a variety of opportunities for its tenants to engage with it, and influence decisions that have an impact on them, with good quality scrutiny activity that has clearly influenced service improvements. Worthing Homes’ current lack of information on tenant vulnerability and diverse needs limits its ability to assess whether it is delivering fair and equitable outcome for tenants.

In relation to complaints, we found evidence that Worthing Homes is taking action to ensure complaints are addressed fairly, effectively and promptly, and that this includes work to address historically high levels of complaints by identifying underlying causes and themes, to improve service delivery. Initial progress has been positive, but we have not yet seen evidence that the improvements to processes and resourcing are delivering sustained improved outcomes for tenants.

In relation to the Neighbourhood and Community Standard, we found evidence that Worthing Homes works in partnership with other agencies to deter and tackle anti-social behaviour and hate incidents in the neighbourhoods where it provides social housing. Worthing Homes is experiencing relatively high levels of anti-social behaviour alongside an increase in related complaints. Plans are in place to address these issues, however, as they have not yet been implemented, there is currently no evidence that they will lead to improvements for tenants.

Worthing Homes has shown that it is fair and transparent in its approach to allocating and letting homes, including how it takes the needs of tenants and prospective tenants into account. It demonstrated that it ensures that the tenancies and terms of occupation granted are appropriate, meeting all relevant requirements of the Tenancy Standard.

We will continue our engagement with Worthing Homes while it delivers its intended improvements to the delivery of the outcomes of our consumer standards.

Governance – G2 – April 2026

Based on the evidence gained from the inspection, we gained assurance that Worthing Homes’ governance arrangements are meeting the requirements of the Governance and Financial Viability Standard. However, we concluded that it needs to improve aspects of its governance arrangements to support continued compliance with the standard.

Our inspection found that Worthing Homes has an adequate understanding of its operating environment and overall achievement of its strategic aims, with a strong tenant focused approach.

The board has the skills needed to support strategic oversight and we have assurance that decision making is largely evidence based, and considers risk levels, financial implications, value for money and tenant outcomes. We saw evidence following a recent periodic governance effectiveness review in 2025 of progress towards the implementation of its recommendations. There is appropriate visibility and oversight of financial performance with clear reporting in place including on financial golden rules and identified mitigations.

Worthing Homes’ approach to its stress testing allows the board to understand and manage risks to its viability and is integrated with wider business planning and linked with its risk framework.

Worthing Homes’ risk management and control framework is aligned to its strategic risks though some improvement is required to its approach to internal controls assurance. The reliability, accuracy and completeness of the information held by Worthing Homes needs strengthening, evidenced through recent reviews of procurement and contract management of its repairs service with ineffective oversight and management of performance and cost control highlighted by recent repairs overspends. Work is already underway to strengthen important areas, including the quality of information and contract management. A data strategy is in place and action plans resulting from external reviews of several areas are also being progressed.

During our inspection, Worthing Homes’ board demonstrated that there is regular and appropriate consideration of alternative options to deliver value for money and make best use of resources. We found evidence that it reconsiders its strategy in the context of a changing operating environment and has reporting in place to monitor delivery of its purpose and objectives

We will continue our engagement with Worthing Homes while it makes its intended improvements to aspects of its governance arrangements.

Viability – V2 – April 2026

Based on evidence gained through the inspection, we have concluded that Worthing Homes’ financial plans are consistent with and support its financial strategy. Worthing Homes 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, the financial profile has further weakened from 2024 as a result of increasing management and repairs costs. In addition, the contribution from first tranche sales income and fixed asset disposals also makes up an increasing proportion of Worthing Homes’ overall surplus. We have assurance that Worthing Homes 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 Worthing Homes’ capacity to respond to adverse events.

Background to the judgement

About the landlord

According to the 2025 statistical data return Worthing Homes owns and manages around 4,250 social housing homes in the South East of England, mostly in Worthing and the surrounding areas. Worthing Homes provides predominately housing for general needs but also holds shared ownership properties along with a relatively small proportion of housing for older people Worthing Homes has 136 full-time equivalent staff employed with a turnover of £31.6m at 31 March 2025.

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