HCA downgrades two landlords

Curo Group, which owns 12,600 homes in Bath and Bristol, has had its governance rating downgraded to ‘G2’, meaning it complies with standards but needs to improve.

The Joseph Rowntree Housing Trust (JRHT) has had its financial viability rating downgraded to ‘V2’, which means it complies but needs to manage risks to ensure continued compliance.

Regulator the HCA raised concerns that Curo Group may not be “able to sufficiently evidence that it can manage its own affairs with an appropriate degree of effectiveness”. Curo Group has now come up with an action plan including reducing the size of its board and streamlining committees. A spokesperson said the group aims to get its ‘G1’ rating back later in the year.

In its judgement on JRHT, the HCA said the association is reliant on increasing levels of asset disposals in order to ensure headroom on lending agreements. It said: “Underlying the forecasts are significant efficiency savings and increasing rental income from new development.

“Failure to realise these savings or the benefits of growth would exacerbate the existing pressures on the business.”

A JRHT spokesperson said: “We are in the process of reviewing all our options to ensure we are running the organisation as efficiently and effectively as possible.”

In other judgements today, the HCA upgraded the governance rating of Equity Housing Group and Suffolk Housing Society to the maximum ‘G1’ rating and the viability rating of Hightown Housing Association to the top ‘V1’ rating. Ocean Housing Group retained its ‘G1’ and ‘V2’ ratings, while Peabody retained the maximum ratings for both governance and viability.