RSH takes enforcement action against two HAs for failing to address issues

The regulator said it considers the issuing of an enforcement notice “appropriate and proportionate”, as each provider has been “unwilling and/or unable to” address its failures to meet the regulatory standards.

The regulator said it continues to lack assurance that each landlord complies with the standard.

The RSH said each landlord was unable to ensure effective governance that delivers for tenants, manage its affairs independently and effectively, and ensure that the arrangements it has entered into do not inappropriately advance the interests of third parties.

SACHA and Kinsman Housing each own and manage social homes under arrangements which give material controls and all beneficial interest to a third party.

The regulator said it continues to have serious concerns about weaknesses in each provider’s governance, and that each has arrangements which inappropriately advance third-party interests.

The regulator also has serious concerns about the ability of each provider to manage risks to ensure their long-term viability and ability to protect their social homes. 

Furthermore, the RSH said that Kinsman Housing has failed to assure it that it has addressed issues relating to fire safety in some of its homes, set out in a regulatory notice about breaching the Home Standard in 2019.

Regulator’s orders

The RSH is using its powers to direct both SACHA and Kinsman Housing to commission independent appraisal reports to address each of their “persistent and serious cases” of non-compliance with regulatory standards.

It said these reports should review the options and actions available. The RSH said these should include renegotiation and/or exit from the arrangements each provider has entered into over its social housing assets and voluntary deregistration as a social housing provider or winding down followed by deregistration.

The RSH said Kinsman Housing’s appraisal should also review whether the remedial and repair works carried out in its homes have “satisfactorily” addressed the regulator’s concerns. The regulator said it should also look at whether the provider is able to supply “adequate assurance” that the property is safe for tenants and residents.

The RSH said, based on the outcome of the appraisal, the boards of both SACHA and Kinsman Housing would develop an action plan and timetable to ensure compliance with the regulatory standards for the regulator’s consideration.

The RSH said the providers were required to engage with it before entering into any transactions to acquire further social housing assets, while a non-compliant notice remains in place.

The regulator expected the social landlords to co-operate fully with it.

Harold Brown, senior assistant director for enforcement and investigations at the RSH, said: “St Andrews Community Housing and Kinsman Housing have both continually failed to address the issues we identified, including their poor governance and property arrangements which have inappropriately advanced the interests of third-party investors.

“This is unacceptable. We are using our enforcement powers to require each of them to address their failures and return to compliance. They must act promptly to put things right and, if necessary, we will consider using further powers.”

Both SACHA and Kinsman Housing have been contacted for comment.