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Regulator takes enforcement action against lease-based provider
The Regulator of Social Housing (RSH) has published an enforcement notice for a lease-based provider to make it take “prompt actions to address serious failures and manage itself effectively”.
The Regulator of Social Housing has published an enforcement notice for a lease-based provider to make it take “prompt actions to address serious failures and manage itself effectively” #UKhousing It comes after Pivotal Housing Association (PHA), a provider of specialised supported housing, “failed to ensure” it has access to sufficient liquidity and can manage significant risks to its viability “both in the short and longer term”.
This could put the social homes it owns and manages, and the quality of services it delivers, at risk, the regulator said.
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The RSH can issue an enforcement notice when a provider has not taken appropriate action after it fails the regulatory standards.
In 2021, it concluded after an investigation that PHA was not delivering the outcomes of the Governance and Financial Viability Standard, and the Rent Standard.
The regulator said it had engaged “intensively” with PHA since then, but the provider has been “unable or unwilling to resolve the issues and meet the regulatory standards”.
It is now using its powers to make PHA commission an independent review and develop a clear action plan for agreement with the regulator.
PHA must review risks and liabilities to determine whether it can remain solvent, ensure tenant safety and manage potential conflicts of interests.
The RSH may withdraw the enforcement notice at any time by giving notice to PHA.
Should PHA fail to comply with this enforcement notice, the RSH will consider exercising other regulatory or enforcement powers.
Jonathan Walters, deputy chief executive of the RSH, said: “We are prepared to use powers where landlords are unable or unwilling to address issues to protect social homes and tenants’ interests.
“PHA is exposed to significant financial risks due to the type of lease structures it has entered into. It must address its access to liquidity urgently and agree a plan with us to ensure it can be properly managed and viable for the longer term.
“We expect PHA to co-operate fully with our direction.”
PHA has been contacted for comment.
The enforcement action comes after the regulator warned last week that specialised supported housing was not being delivered by lease-based providers in a way that consistently meets its standards.
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