You are viewing 1 of your 1 free articles
Regulator investigates housing association with former First Priority leases
The social housing regulator is investigating a housing association which took on some of First Priority’s homes after that association nearly became insolvent.
Bespoke Supportive Tenancies (BeST) has been added to the Regulator of Social Housing’s ‘grading under review’ list, as part of the regulator’s ongoing investigation into small associations that lease homes from investment funds.
In July last year, the association took on the 35-year leases for 24 homes that were previously being managed by First Priority.
The leases were transferred by Supported Living Infrastructure Limited (SLIL), a fund that buys such properties and leases them to housing associations for index-linked payments, because First Priority almost became insolvent.
READ MORE
This, Inside Housing revealed last year, was as a result of the association taking on leases where the payments due to investors were higher than the rent being received for the homes. There is no suggestion that this was the case for the SLIL leases.
Since the First Priority crisis, the Regulator of Social Housing has focused its attention on housing associations with similar business models, of which BeST is one.
Like the other five associations to be investigated by the regulator so far, BeST provides housing to people with various support needs, including learning disabilities, physical disabilities and mental health needs.
The regulator said it is investigating to see if BeST is in breach of its governance or financial viability standards.
So far, of the five other associations to be part of this investigation, three have been found non-compliant: First Priority, Trinity and Westmoreland. Investigations into the other two – Inclusion and Encircle – are ongoing.
As usual for this stage, the regulator has not revealed any details of its investigation into BeST, but in an announcement to the stock market, the real estate investment trust (REIT) Civitas revealed that it leases homes to BeST.
It added: “As at 25 January 2019, BeST remains fully up to date with all lease payments due to Civitas and this is expected to continue to be [sic] in the future.”
Another REIT, Triple Point, has also previously announced to the stock market that it has leased homes to BeST.
A statement on BeST’s website stated: “The board of trustees and executive management team have welcomed engagement with the regulator and are committed to working alongside [it] to ensure we are meeting the regulatory standards.”
Inside Housing has contacted SLIL for comment.
