Inside Homes – News – Large London landlord downgraded to G3 amid ‘serious’ consumer failings

RSH said the owner is “working positively with us and acknowledges the concerns identified following the inspection”.

“They have begun to deliver the necessary improvements and are making key appointments, as well as working with outside counsel, to help address the issues identified in this regulatory ruling.”

Mr Franco said NHG would “work in tandem” with the regulator, “as well as residents, colleagues and other key stakeholders, to deliver on our plan”.

NHG has undergone a number of changes in its management team this year. Last week, this made three appointments to newly created roles to help it improve its services, including a chief governance and risk officer.

Deputy Executive Director John Hughes he resigned from his role at NHG in October.

Earlier this year, the owner appointed a new CFO. Mark Smith joined in April from NHS Property Services.

Mr Franco added that NHG had made “good progress over the past 12 months” with its Better Together strategy, published in the summer of 2023.

It sets out the landlord’s three-year plan “to deliver better homes and services for residents”, including a £770m investment in existing homes over the next 10 years.

“Unfortunately, we have not made progress quickly enough to avoid these non-compliant consumer and governance assessments in this rightfully even tighter regulatory environment,” Mr. Franco said.

Ian Ellis, chairman of NHG’s board, said: “The outcome of our inspection clearly reiterates the need to rapidly improve the standard of our existing homes, deliver better outcomes for customers and continue to implement our new risk management framework.

“Returning to regulatory compliance quickly and thus improving our offer for residents is now the council’s number one priority.”

Next steps include writing to all residents to apologize that services are not “at the standard they expect or deserve”, NHG said.

The big owner has also faced financial challenges over the past 18 months. He was temporarily obliged suspend trading for five of its bonds after it filed its audited annual accounts late.

His outstanding accounts revealed a deficit of £90m for 2023-24, an increase of £8m on the £82m shortfall it reported in its unaudited accounts in June. This was due to the £110m “build-up of collateral and asset impairment” and lower sales figures, it said.

In its latest half-year results, NHG said it had made “progress” after reporting a post-tax surplus of £37.4m and a 10% rise in turnover.

The only other G15 landlord to receive a consumption rating is Southern Housing, which was gave a C2 in August and moved up to a higher grade of G1 for governance.