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Regulator investigates ‘sham transactions’ association following pressure from councils
The regulator has launched an investigation into a housing association previously accused of “sham transactions” by a London council.
Pathfinder Housing Association, previously called London District Housing Association (LDHA), was taken to court by Southwark Council over claims it deliberately violated its Section 106 agreements.
Southwark Council had accused LDHA of “conspiring” to use “sham transactions” to sell homes on the open market that were supposed to be sold for shared ownership, in the court case in 2016.
The case was settled on a confidential basis, and the association denied the allegations and did not accept that they were part of any sham transaction.
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Three London councils called on the regulator to reopen an investigation into the housing association, with one complaint stretching back to 2015.
Two other associations – Kinsman Housing and St Andrews Community Housing Association – have also been placed on the Regulator of Social Housing’s grading under review list.
These two associations both have links to Pathfinder. Pathfinder transferred one of its sites in London to St Andrews when plans to build seven homes for affordable rent stalled. Kinsman Housing’s director, Graham de Roy, is a former director of LDHA.
All three providers have fewer than 1,000 homes and so do not have a published regulatory judgement.
St Andrews provides housing for young people, single adults and families and is based in north London. Kinsman Housing provides housing in London, the Home Counties and the South East and plans to manage more than 1,000 homes over the next few years, its website states.
The outcome of the investigations will be published in a regulatory notice once they are completed.
The associations have been approached for comment.
