Regulator de-registers housing association previously ruled non-compliant over conflicts of interest
A housing association sued by a London council for allegedly selling affordable properties on the open market has been de-registered by the Regulator of Social Housing (RSH) due to its lack of social housing properties.
The RSH removed Pathfinder Housing Association from its list of registered providers (RPs) of social housing on 30 October.
According to the RSH’s 2019 Statistical Data Return, Pathfinder did not have a single social housing unit under its ownership or management. The RSH does not allow organisations without stewardship over any social housing to retain RP status.
Pathfinder was deemed non-compliant with regulatory standards on governance and financial viability in September 2018, with the RSH saying the organisation could not provide evidence that its arrangements with third parties had not “inappropriately advance[d] the interests of third parties”.
In 2016, Southwark Council took court action against Pathfinder – then known as London District Housing Association – alleging in the original particulars of the claim that Pathfinder had “conspired” to use “sham transactions” to sell shared ownership homes on the open market that it had purchased through Section 106.
The cases reached confidential settlements, with Pathfinder denying all allegations and that it was part of any sham transaction or conspiracy.
Pathfinder was registered in July 2006. According to September 2018’s regulatory notice, it had previously managed around 100 social housing units in London, but only had one vacant asset plus “a small number of head leases” remaining, which were subject to a court order requiring transfer to another RP.
Pathfinder’s most recent published accounts show it had a turnover of just £500 for the year ended 30 September 2018 and made a £834 loss.
In the previous year, it reported a £251,823 loss on a turnover of £5,594.
Pathfinder has been contacted for comment.
