Regulator investigates third private equity-linked housing association

Inclusion Housing, which follows a similar business model, was placed on the grading under review list in May, but the regulator has yet to issue a judgement.

Investigating both of these associations is part of the regulator’s response to First Priority. It wrote to around 30 associations – including Trinity and Inclusion – in May, seeking assurances over their business models.

It is not clear from the regulator’s notice why Trinity has been placed on the list.

In a statement, the Regulator of Social Housing said: “The regulator is currently investigating a matter regarding the providers’ compliance with the governance and financial viability standard. The outcome of the investigation will be confirmed in a regulatory notice, once completed.”

Trinity’s accounts state: “The association’s business is the leasing of properties with multiple individual housing units from a number of different landlords, the sourcing and letting of housing properties to tenants, and the appointment of managing agents and care providers to deliver specific groups of services to tenants.”

It has grown rapidly in the past couple of years, going from 319 homes managed for others in June 2016 to 795 a year later, according to its accounts for 2017. At that time, it owned 155 supported homes.

Now, its website states that it “provides in excess of 800 tenancies across 10 different council areas”.

The organisation has done deals with a number of REITs and private equity funders, including Civitas Social Housing.

Inside Housing has not been able to confirm the names of any of Trinity’s other creditors, but the association is understood to have deals with other large REITs and private equity investors.

Civitas is one of the only funders of this kind to regularly publicise its deals and reveal its counterparties.

Two organisations understood to have done deals with Trinity have been contacted for comment.

Rents paid to Civitas from Trinity are understood to provide 6.9% of Civitas’ income, down from 9% at the end of last financial year. They are understood to be fully paid and up to date.