Connexus is a community-focused rural housing group with over 10,500 homes across Shropshire and Herefordshire. Their focus is to provide high-quality affordable housing to the counties of Herefordshire and Shropshire through the development of new affordable homes, maintenance and improvement of their existing homes and the development of associated services to enhance the lives of their customers and communities.
RSH Narrative Regulatory Judgement
Provider: Connexus Homes Limited
Regulatory code: LH4353
Publication date: 15 November 2022
Governance grade: G1
Viability grade: V2
Reason for publication: Viability regrade
Regulatory route: Stability Check and Reactive Engagement
Regulatory judgement
This regulatory judgement regrades our previous published assessment of Connexus Homes Limited’s viability grade from V1 to V2 and confirms its existing G1 for governance.
The regulator has assurance that Connexus Homes Limited (Connexus) complies with the financial viability elements of the Governance and Viability Standard and that its financial plans are consistent with, and support, its financial strategy. Connexus has an adequately funded business plan, sufficient security, and is forecast to continue to meet its financial covenants.
Connexus is increasing investment in existing homes which is weakening its interest cover and reducing headroom on its covenants. Connexus also needs to obtain additional funding to deliver its plans, creating an exposure to rising interest rates. These factors, coupled with the current economic uncertainty in relation to inflation, reduce Connexus’ capacity to respond to adverse events.
The regulator’s assessment of Connexus’ compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. On the basis of the Stability Check, the regulator has concluded that there is no evidence to indicate a change to Connexus’ current governance grading.
Housing Ombudsman
Connexus Housing Limited (202001558)
REPORT COMPLAINT 202001558 Connexus Housing Limited 19 January 2021 Our approach Under our early resolution process, the Ombudsman works with the resident and landlord to explore the […]
Connexus Homes Limited (202007836)
The complaint is about the landlord’s handling of the resident’s tenancy sign-up.