RSH has published an enforcement notice for Pivotal Housing Association (PHA) to make it take prompt actions to address serious failures and manage itself effectively.
PHA, a lease-based provider of specialised supported housing, has 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.
In 2021 RSH concluded PHA was not delivering the outcomes of the Governance and Financial Viability Standard, and the Rent Standard.
Since then, RSH has engaged intensively with PHA, however it has been unable or unwilling to resolve the issues and meet the regulatory standards.
RSH is 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, tenant safety and management of potential conflicts of interests.
Jonathan Walters, Deputy Chief Executive of 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.
Notes to editors
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A registered provider is responsible for ensuring that it manages itself effectively, achieves the standards set by the regulator, and engages positively with the regulator’s regulatory framework. Where a failure against a standard or other problem has been identified, the regulator expects a registered provider to respond in a prompt and effective manner. It may be necessary for the regulator to step in and exercise its powers under section 219 of the Act when a provider fails to do so.
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Sections 219 to 225 of the Act allow the regulator to require a registered provider to take specified action to resolve a specified failure or other problem by issue of an enforcement notice. The regulator has published guidance on its use of this power which can be found here.
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The Regulatory Standards that registered providers of social housing are required to meet can be found here together with our approach to regulating the standards.
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A registered provider given an enforcement notice may appeal against it to the High Court pursuant to the Housing and Regeneration Act 2008.
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RSH may withdraw the enforcement notice at any time by giving notice to PHA. Should PHA fail to comply with this enforcement notice, RSH will consider exercising other regulatory or enforcement powers.
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For general enquiries email enquiries@rsh.gov.uk. For media enquiries please see our Media Enquiries page.
