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Lease-based association placed under investigation by regulator
The Regulator of Social Housing (RSH) has placed a lease-based provider based in the North East on its ‘gradings under review’ list.
The RSH confirmed last Friday that it had put Auckland Home Solutions on its review list, meaning it is being investigated over matters that may impact its regulatory compliance. As Auckland Home Solutions has fewer than 1,000 homes, it does not currently have a regulatory grading.
Based in Durham, Auckland Home Solutions is a lease-based provider of supported housing that is part of The Social Housing Family, a community interest company established by real estate investment trust (REIT) Civitas Social Housing.
In 2019, Auckland Home Solutions became the first member of The Social Housing Family Trust, which was set up by Civitas to advise the housing associations it leases homes to.
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Civitas describes the The Social Housing Family as a not-for-profit community interest company established to assist member firms to enhance corporate governance standards and to benefit from sharing of best practice expertise.
Civitas’ business model involves buying homes that it then leases to housing associations, which make monthly, inflation-linked payments to the REIT.
The REIT said in an announcement to the stock market on Friday that Auckland represents 23.9% of Civitas’ rent roll, and that all lease payments due to Civitas are fully up to date and this is expected to continue to be the case in the future.
It added: “The RSH announced in May 2018 a general review of housing associations engaged in the provision of property services for vulnerable people. Auckland’s review is part of this regulatory process.”
So far this year the RSH has placed seven housing associations on its gradings under review list, including exempt accommodation providers 3CHA, Ash-Shahada Housing Association and Concept Housing Association, as well as lease-based provider Hilldale Housing Association.
Social landlords are removed from the list once the outcome of the regulator’s investigation is confirmed via a regulatory judgement.
Auckland Home Solutions has been approached for comment.
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