Your Housing Group is one of UK housing's largest providers across the North West, Yorkshire & north Midlands. Your Housing Group are working (according to them) efficiently and effectively to build as many quality houses as possible to play our part in solving the national housing crisis. With over 29,000 homes, the business has a large and diverse portfolio of homes. These range from general properties for social and affordable rent, through to retirement living developments and innovative private rental offers. Widely regarded for its expertise in regeneration, Your Housing Group prides itself on providing homes which help people to live independently and on enabling people to get on and off the property ladder at different stages of their lives. With a pioneering, creative workforce, Your Housing Group is a business that successfully combines a commercial head with a social heart.
RSH Narrative Regulatory Judgement
Provider: Your Housing Group Limited
Regulatory code: L4203
Publication date: 29 June 2022
Governance grade: G2
Viability grade: V2
Reason for publication: Changed basis for viability and governance grades
Regulatory route: In Depth Assessment
This regulatory judgement confirms the regulator’s existing G2/V2 assessment of Your Housing Group Limited’s (YHGL) governance and viability.
YHGL was downgraded to G2 in February 2020 due to a lack of clarity about its strategy, material shifts in plans and because a number of abortive projects and schemes had limited the board’s ability to measure performance over time in delivering its strategic priorities. Underperformance against delivery of YHGL’s objectives had not been robustly considered and there was evidence of under-investment in its existing homes. YHGL’s board had not demonstrated that it had ensured effective use of resources in line with its objectives and charitable status.
In a further judgement published in December 2020, we regraded YHGL’s viability from V1 to V2. Following an external review, YHGL had substantially increased its forecast asset management spending, resulting in increased debt, a weaker financial profile and reduced operating margins. In addition, a failure to achieve significant planned cost savings would increase YHGL’s need for additional funding and further reduce operating margins.
Based on evidence gained from an In Depth Assessment, the regulator has assurance that YHGL continues to comply with the Governance and Financial Viability Standard. Since the downgrade to G2, YHGL’s leadership has been strengthened including through an increase in social housing sector specific skills and experience on its board.
YHGL has a new corporate strategy and has evidenced that resources are being used more effectively to achieve intended outcomes. Legacy projects have been reviewed and a more robust process is in place to ensure decision making reflects YHGL’s strategic priorities. YHGL has improved its approach to asset management to support the development and delivery of investment plans for its homes. These plans, and the underlying stock data, have been externally validated and there is increased capacity, including new executive leadership, to support ongoing delivery.
However, YHGL has further work to do to strengthen its risk management and the adequacy of its internal controls, particularly within the finance function. Recent internal audits have highlighted control weaknesses. Notably, a review of rent and service charge setting identified wide ranging errors, which YHGL self-referred to the regulator. Following investigation, we have concluded that YHGL has not complied with the Rent Standard 2020 or the legislative requirements of the Welfare Reform and Work Act 2016. We have set out our findings in a separate Regulatory Notice.
YHGL needs to ensure that it has a stable finance function with sufficient management oversight in order to maintain a strong control framework. Executive leadership in the finance function has been strengthened but a transformation plan, alongside data and process improvements to deliver efficiency savings, is still to be delivered.
YHGL has an adequately funded business plan with sufficient security in place. The plan is built on reasonable assumptions and has been subjected to an appropriate range of stress tests and mitigations have been identified.
However, YHGL’s planned level of asset management spending, including building safety works, required renegotiation of lender covenants in 2019, to create headroom on interest cover. The financial profile continues to be weak over the short to medium term and significant efficiency savings are required to achieve forecast financial performance and maintain covenant headroom. YHGL also has some reliance on forecast sales surpluses in 2023.
Other providers included in the judgement
Your Housing Limited, Frontis Homes Limited, Ascent Housing LLP
About the provider
Origins
YHGL is a charitable community benefit society, a registered provider and the non-asset holding parent of the Group.
Registered Entities
There are three registered providers. Your Housing Limited is the principal operating subsidiary and is a charitable community benefit society formed in July 2017, following group consolidation. Frontis Homes Limited is a non-charitable community benefit society. Ascent Housing LLP, a for profit registered provider, holds no stock and has applied to de-register.
Unregistered Entities
There are two active non-registered subsidiaries within the group:
Nuvu Development Limited is a property development company.
Nuvu Living LLP, a property partnership, is 99.99% owned by YHG and 0.01% by Nuvu Development Limited.
Geographic Spread and Scale
The group is based in Warrington and operates across the North West, Yorkshire and the Midlands. YHG owns and manages around 26,700 homes. The majority of its homes are for general needs, but it also provides supported housing, retirement living, key worker and shared ownership housing.
Staffing and Turnover
The group employs the full-time equivalent of 1,045 staff. Its turnover for the year ended 31 March 2021 was £153.8m.
Development
YHG’s 2022/23 business plan includes development of 2,265 units over the next five years. This includes commitments made through its strategic partnership with Homes England.
Housing Ombudsman
Your Housing Group Limited (202016452)
The complaint is about: The landlord’s response to the resident’s reports of antisocial behaviour consisting of neighbours leaving rubbish and personal items in communal areas. The landlord’s complaint handling.