Three large HAs handed C2 grade as regulator finds ‘weaknesses’

It added: “Tenant satisfaction, complaints and performance information demonstrated that the service is improving, but is not yet at target levels.”

However, the regulator said it has assurance that SNG, which was formed through a merger of Sovereign and Network Homes in 2023, had “appropriate plans in place to deliver the required improvements”.

Mark Washer, chief executive of Basingstoke-based SNG, said: “We are committed to delivering the best possible outcomes for our customers and recognise that ongoing improvements are needed across our repairs and complaints services.

“Significant investment is being made in these areas, building on our existing improvement plans, and work is already underway so that our customers continue to feel the difference we are making.”

SNG also kept its V2 rating for financial viability, but the RSH said there were “material financial exposures” it needed to manage, as it was delivering a “large” development programme.

The group is bucking the trend in the sector by pushing on with a major housebuilding programme. It plans to develop 25,000 homes over 10 years.

Regarding 24,000-home Housing 21, the RSH found “appropriate systems” to ensure the health and safety of tenants, an accurate record of the condition of homes, and an “effective and timely” repairs service.

However, the judgement said Housing 21’s board oversight of the group’s overall performance reporting “does not include a wide range of performance metrics, and this is an area for improvement”.

It also said there were “weaknesses” in how it captures and reports its local and on-site services at an organisational level.

Housing 21 retained its V1 status, as the RSH noted “strong levels of forecast headroom with no reliance on the sale of homes”.

Bruce Moore, chief executive of Housing 21, said: “We’re really pleased that our V1 and G1 status have been confirmed by the regulator. Whilst we are disappointed that we didn’t also achieve C1 status, we are committed to working with the regulator to address the improvements required in our reporting arrangements.”

At Liverpool-based Torus, which operates 40,000-homes, the regulator found assurance that it understands the condition of its homes, and “appropriate systems and processes” for ensuring the health and safety of tenants.

On its repairs and maintenance service, the RSH said there was evidence that Torus had been “driving improvements over the past two years”.

However, the regulator said its inspection found “weaknesses in how Torus evidences that the required outcomes are being delivered for tenants. In particular, there is more work to do to demonstrate that its approach and oversight are effective and that performance is underpinned by robust data.”

The judgement also noted that recent work by Torus to improve its complaint-handling service resulted in “improved performance”.

Torus kept its V1 grade, as the RSH found “appropriate assurance that Torus’ board has effective oversight of loan covenant compliance and forecasts to maintain good levels of headroom”.

Steve Coffey, chief executive of Torus, said it welcomed the regulator’s “findings and feedback” on its governance and financial management.

He added: “We highlighted to the regulator the planned improvements we identified before the inspection around data analysis and intelligence-gathering so we have a better overview of our consumer services.

“The regulator has not prescribed any actions, but instead told us to just progress these improvements over the coming months and they will happily return to review the grading in the expectation that we have moved from C2 to C1, which will match our G1 and V1 ratings.”

In another judgement today, the RSH awarded 80,000-home Bromford Flagship interim grades of G1/V1 after Flagship became a subsidiary of Bromford earlier this year.