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RSH calls for submission of post-coronavirus business plans by September
The Regulator of Social Housing (RSH) has requested up-to-date business plans from housing providers by September as it seeks to build a picture of the impact of the COVID-19 crisis on the sector.
In a letter to English providers sent today, Fiona MacGregor, chief executive of the RSH, said that financial forecast returns (FFRs) and current business plans need to be submitted to the regulator by 30 September.
This will allow the regulator to assess the impact of the crisis on providers, and make any changes to their viability gradings as required.
The FFRs will also need to take into account new spending commitments on decarbonisation and fire safety, which were already expected to put pressure on existing plans.
Will Perry, director of strategy at the RSH, told Inside Housing: “We are now in a position where we would like assurance about how providers are responding. It feels like providers are in a place, as we move through the crisis, to make some kind of assessment.
“There will be a flexing of assumptions, things like development and repairs have been paused for a while, some costs have gone up and that will have an impact on what providers are managing.
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“We are particularly looking at where providers have ambitious plans or greater financial challenges. Some will be financially weaker as a result of the crisis, with arrears rates going up, prices going up, and that may feed through into viability grades.”
The RSH would normally require FFRs by June, but pushed the deadline back because of the crisis.
It typically uses the returns to run stability checks on providers’ businesses, assessing their stress-testing and capacity for financial shocks, which then informs viability gradings and other regulatory action.
The regulator said: “The business plan and FFR should be an accurate reflection of what you intend to do based on your current understanding including, for example, your projected development activity, planned investment in repairs and improvements to your existing stock.
“They should be based on robust evidence about the condition of your stock, taking into account any plans for building safety or energy efficiency work as well as the impact of COVID-19.”
It said it would “consider” requests for deadline extensions where necessary.
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In the letter, available above, the regulator also confirmed the restart of in-depth assessments, which were paused on 18 March as a result of the pandemic.
These will resume over the summer with a small number of providers, which have already been notified, and will be conducted virtually.
Providers’ accounts and financial viability statements will need to be submitted by the end of the year, although the regulator encouraged them to provide them as soon as they are ready.
The ‘NROSH+’ system for the submission of business plans, accounts and FFRs will be open from today.
