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For-profit provider under investigation by the English regulator
The Regulator of Social Housing (RSH) has placed Heylo Housing on its gradings under review list.
The Regulator of Social Housing has placed Heylo Housing on its gradings under review list #UKhousingIn a statement release this morning, the English regulator said it is investigating a matter that may impact Heylo’s compliance with the governance element of the Governance and Financial Viability Standard.
Once the investigation is completed, the RSH will publish the outcome in a regulatory judgement.
With 7,000 properties, Heylo claims to be the UK’s largest private investor in shared ownership housing.
In response to being placed on the regulator’s gradings under review list, a Heylo spokesperson said that it is the first for-profit provider to go through an in-depth assessment.
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They said: “We found it a really constructive process and a positive opportunity to engage with the regulator about our organisation and how we can ensure it operates in the most effective and appropriate way.
“We are confident that by continuing to work with the regulator closely any remaining questions will be addressed.
“We would like to thank the regulator for their detailed work and collaboration in recognising the need to consider new and innovative models such as ours for the future and look forward to a continued positive working relationship.”
The 7,000-home landlord said its business “generates tremendous social value and looks forward to delivering more homes over the coming years”.
It comes shortly after Heylo reported in its annual accounts that market volatility could affect its ability to pay its debts.
In its report for the period up to the end of September 2021, the for-profit provider said that if its net debt remains the same, a downward movement of £1.4m, or 6.8% in the valuation of the association’s property portfolio, may lead to a breach of the asset coverage ratio covenant.
In reference to the latest accounts, a Heylo spokesperson told Inside Housing that the organisation had “run multiple sensitivity analyses” and stood by its belief that the firm has a going concern, however had decided “to explicitly acknowledge the market uncertainty” given that the period also includes the impact of the coronavirus pandemic.
Heylo has elected not to pay dividends in order to create a buffer.
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