A council in Surrey has become the first to return from non-compliant grade to a C1 under the Regulator of Social Housing’s (RSH) consumer standards following a turnaround.

Guildford Borough Council was graded C3 in July 2024 after it self-referred over issues within its housing service, which included “potentially unnecessary repairs being carried out to tenants’ homes”.
But after carrying out an improvement plan in agreement with the English regulator, the council is now the first to move from a non-compliant C3 to the top C1 grading.
Julian Higson, joint strategic director of housing, communities and environment at Guildford Borough Council and Waverley Borough Council, said: “A C1 rating is a positive achievement and meeting these standards is the baseline residents rightly expect.
“We will continue to work through our housing improvement plan to improve housing services, strengthen resident engagement and ensure that safety and quality remain at the centre of our work.”
The RSH has given Connexus a non-compliant C3 grade after it identified gaps in the landlord’s understanding of the condition of its homes. It could only demonstrate limited assurance that its stock is compliant with the Decent Homes Standard.
In addition, feedback from tenants and complaint volumes mean that improvement is needed so that the landlord’s repairs service is efficient, effective and timely.
Connexus also received a governance downgrade to G2 due to needing improvements in elements of its risk management framework, as well as in the quality and reliability of information used to support decision-making.
Its V2 financial viability grade was unchanged.
Kate Smith, chief executive at Connexus, said: “Connexus is on a long improvement journey following the launch of our corporate plan last year, and we recognise that our new customer centric and data-led approach is not fully embedded and delivering outcomes for customers yet.
“The judgement references our awareness of this in a number of areas, and we are committed to working with the regulator to evidence our new approach."
Kate Dodsworth, chief of regulatory engagement at RSH, said: “Our role is to hold landlords to account and drive continuous improvement, to ensure tenants live in good-quality homes and receive effective services.
“Guildford Borough Council is a strong example of how landlords can work with us to put things right – and working to address failings identified through a responsive C3 judgement to achieving a C1 judgement following an inspection shows significant progress.
“A C1 grading means landlords are meeting the minimum standards we expect, so there is always room for improvement even in landlords with the highest grade.”
Arhag Housing Association was placed on RSH’s grading under review list in December 2025 and today’s judgement has confirmed the landlord is not delivering the required outcomes of the Governance and Financial Viability Standard.
However, the RSH noted that the association plans to become a subsidiary of Hyde Group and the resulting merger “will ultimately help delivery of good-quality homes and services to its tenants”.
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