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Lease-based provider under investigation by RSH
A supported housing provider linked to private equity funds is under investigation by the Regulator of Social Housing (RSH).
My Space Housing Solutions has today been added to the regulator’s ‘gradings under review’ (GUR) list.
The RSH said it is probing “an issue which may result in a downgrade to a non-compliant grade”.
Regulatory gradings are not published for housing associations with fewer than 1,000 homes – and My Space recently passed that threshold.
Bolton-based My Space provides specialised supported housing for adults living with mental disabilities.
Its business model partly involves entering long-term lease agreements for housing stock with real estate investment trusts in exchange for inflation-linked payments.
The RSH has been highly critical of the lease-based setup and has declared 11 housing associations operating some form of the model non-compliant with its standards since February 2018.
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Early this year one such housing association, Inclusion Housing, took the unprecedented step of challenging its regulatory judgement in the High Court, but the judge ruled in favour of the RSH and upheld its conclusions.
In a press notice, the regulator said it “is currently investigating matters which may impact on My Space Housing Solutions’ compliance with the governance and financial viability standard”.
It did not divulge further details.
Once the investigation is complete, My Space will be issued with a regulatory judgement.
In the year to 30 October 2018, My Space received more than £5m in donations – larger than the size of its surplus.
The GUR list includes social housing providers under investigation by the RSH over issues that could result in them being ruled non-compliant.
ForHousing, which owns around 24,000 homes in the North West, is the only other housing association currently on the GUR list, having been under investigation since November.
A spokesperson for My Space said: “The Regulator of Social Housing has made the decision to place My Space Housing Solutions on the Gradings Under Review list.
“Whilst this is disappointing, being placed on the GUR does not automatically mean a non-compliant judgement will follow and we are working with the regulator over the next six to eight weeks to reach a satisfactory outcome.
“During this period we will not be making any further comment.”
Lease-based providers the regulator has found non-compliant
Regulatory gradings (for providers with more than 1,000 homes):
Prospect Housing (G3/V3 in May 2020)
New Roots (G3/V3 in February 2020)
Westmoreland (G4/V3 in September 2019)
Inclusion (G3/V3 in February 2019)
Sustain (UK) (G3/V2 in January 2019)
Trinity (G3/V3 in November 2018)
Regulatory notices (for providers with fewer than 1,000 homes):
Larch (November 2019)
Expectations (UK) (September 2019)
Bespoke Supportive Tenancies (May 2019)
Encircle (April 2019)
First Priority (February 2018)
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