Shepherds Bush Housing Group is made up of Shepherds Bush Housing Association and BE WEST - their shared ownership and private sales brand. Shepherds Bush Housing Association is an award wining community focused housing association based in west London. Established by Reverend Asbridge in 1966, their vision today is as steadfast as it was then for everybody in west London to have a safe and affordable place to call home. Shepherds Bush Housing Group priority is to provide housing for those most in need, they work with some of the most vulnerable people in our society. Shepherds Bush Housing Group have more than 5000 homes, throughout nine boroughs in west London, and provide a range of community services including debt and budget management, sheltered housing and supported accommodation. Shepherds Bush Housing Group work at local and national level to support, develop and influence housing policy and shape issues that matter to their residents. Shepherds Bush Housing Group are a lead voice in PlaceShapers , a national network of social housing providers, tacking issues such as community place making in under valued areas and diversity in the housing sector.
RSH Narrative Regulatory Judgement
Provider: Shepherds Bush Housing Association Limited
Regulatory code: LH0050
Publication date: 22 June 2022
Governance grade: G3
Viability grade: V2
Reason for publication: Governance downgrade
Regulatory route: In Depth Assessment and Reactive Engagement
This regulatory judgement downgrades our previous assessment of Shepherds Bush Housing Association Limited’s (Shepherds Bush) governance from G2 to G3 and reconfirms its V2 viability grade. This means that there are issues of serious regulatory concern but that the provider is working with us to address them.
Following Reactive Engagement, the regulator has concluded that it lacks assurance that the board of Shepherds Bush has been managing its affairs with an appropriate degree of skill, diligence, prudence and foresight. The regulator has insufficient assurance that Shepherds Bush’s governance, risk management and internal control frameworks have been effective or that its business planning framework allows it to monitor and accurately report on all its loan covenants.
Weaknesses in the financial governance arrangements and inaccuracies in board reporting, coupled with a lack of effective board oversight and scrutiny, meant it failed to identify the potential crystallisation of a serious risk in sufficient time for the board to effectively manage it. As a result, Shepherds Bush came within weeks of a potential loan covenant breach which required it to seek an emergency waiver from a third party. Although covenant compliance was achieved at year end, the potential ceding of control by the board is a serious failure of governance. In addition, the event highlights weaknesses in Shepherds Bush’s approach to risk management and that its reporting and monitoring systems are not sufficiently robust.
Through the In Depth Assessment of Shepherds Bush, the regulator identified concerns about fire safety reporting and its compliance with the Decent Homes Standard (DHS). Although we have not found a breach of the consumer standards on this occasion, during our engagement with Shepherds Bush it was difficult to obtain a consistent data set. Data quality is an ongoing issue with Shepherds Bush and the most recent board minutes show the board continuing to question the quality and reliability of the data it is receiving.
The principles of co-regulation and transparency are fundamental pillars of the regulatory framework. There have been a number of incidences where Shepherds Bush’s communication and provision of information fell below the required standard. This includes a lack of notification to the regulator of the concerns about the fire safety and DHS compliance, and the lack of timeliness in reporting the potential covenant breach.
In response to being placed on the regulator’s Gradings Under Review list, Shepherds Bush accelerated several actions to improve its governance and put in place a Governance Assurance Plan that includes an overarching governance review, improvements to the financial governance and controls and several data reviews.
The regulator’s assessment of Shepherds Bush’s compliance with the financial viability elements of the Governance and Financial Viability Standard is unchanged. Based on evidence gained from its latest financial forecasts, the regulator has assurance that Shepherds Bush complies with the financial viability element of the Governance and Financial Viability Standard and that its financial plans are consistent with, and support, its financial strategy.
Delivery of Shepherds Bush’s financial plans remains challenging, particularly in the early years where there is limited headroom. It remains exposed to an adverse change in the housing market due to its sales programme and the ongoing requirement to deliver its efficiency savings programme. Effectively managing the risk of these financial exposures relies on Shepherds Bush’s accurate and timely financial reporting, monitoring and data integrity. However, the organisation has an approved business plan based on reasonable assumptions, including significantly increased building safety expenditure, that is covenant compliant in all years and can withstand a reasonable range of stresses.
Housing Ombudsman
Shepherds Bush Housing Association Limited (201815545)
REPORT COMPLAINT 201815545 Shepherds Bush Housing Association Limited 29 January 2021 Our approach The Housing Ombudsman’s approach to investigating and determining complaints is to decide what is fair in all the […]
Shepherds Bush Housing Association Limited (202009257)
The complaint is about the landlord’s response to the resident’s request for it to carry out a roof repair.
Shepherds Bush Housing Association Limited (201914164)
The complaint is about: The landlord’s response to the resident’s report of scaffolding remaining in place for an extended period. The landlord’s response to the resident’s report of a leak. The landlord’s handling of the associated complaint.
Shepherds Bush Housing Association Limited (202014550)
The complaint refers to: The landlord’s response to the resident’s reports of damp in the property. The landlord’s handling of the associated complaint.
Shepherds Bush Housing Association Limited (202005721)
REPORT COMPLAINT 202005721 Shepherds Bush Housing Association Limited 29 September 2021 Our approach The Housing Ombudsman’s approach to investigating and determining complaints is to decide what is fair in all the circumstances of the case. […]
Shepherds Bush Housing Association Limited (202004086)
This complaint is about the landlord’s response to various repairs at the property.
Shepherds Bush Housing Association Limited (202111617)
The complaint is about the landlord's handling of the resident's: reports of a mice infestation in her property communication with the resident and her representative; and reports of various repairs in the property, including repairs and mould in the bathroom and problems with the windows and front door.
Shepherds Bush Housing Association Limited (202100875)
The complaint concerns: The landlord’s handling of the resident’s transfer application and request for priority banding on medical grounds. The landlord’s handling of an internal transfer. The landlord’s response to concerns about fire safety at the property. The landlord’s response to the resident’s reports of antisocial behaviour. The landlord’s complaint handling.
Shepherds Bush Housing Association Limited (202006610)
The complaint is about the landlord’s response to the resident’s request to run a business from her property.
Shepherds Bush Housing Association Limited (202118932)
The complaint is about the landlord’s decisions regarding replacing the windows in the resident’s home.
Shepherds Bush Housing Association Limited (202103675)
The complaint concerns the landlord’s handling of repairs.
Shepherds Bush Housing Association Limited (202110713)
The complaint is about the landlord’s handling of the resident’s reports of the kitchen being in disrepair.
Shepherds Bush Housing Association Limited (202002157)
This complaint is about the landlord’s decision to apply for an Alternative Payment Agreement (APA) and its response to the resident’s offer of a payment plan to clear her arrears.
Shepherds Bush Housing Association Limited (202105908)
The complaint concerns: How the landlord responded to the resident’s reports of noise nuisance and antisocial behaviour (ASB). The associated formal complaint into these matters.
Shepherds Bush Housing Association Limited (202107472)
The complaint is about the landlord’s: Decision not to add the resident’s two children as members of the household on the tenancy. Response to a report of mice in the property.