Warning re-issued over housing association's financial health
The Tenant Services Authority has re-issued its warning about a social housing provider’s financial health.
The regulator’s judgment described the One Housing Group as having exposures which make it vulnerable to deterioration, according to a regulatory judgement released this week.
The 12,866-home group does however meet all the TSA’s governance and financial standards. ‘Our assessment of the provider’s viability rating remains unchanged since the previous publication.
The judgement reveals that the group predicts its operating margins to increase from 20 to 30 per cent over th next five years thanks to income from property and the cost-cutting collapse of its group structure.
The TSA warns however that its Supporting People income will be hit by severe cuts in funding. ‘The risk of [Supporting People] contracts being withdrawn or fees reduced is managed by linking staff costs to contracts but there is still a risk that cuts in funding will be severe, reducing small margins still further.’
The report also reveals that the group has acquired the care and support company, Umbrella for no cost. ‘This addition will add approximately £5m annually to the group’s turnover,’ it adds.