Flagship Housing Group has had its governance rating downgraded by the Regulator of Social Housing (RSH).

The group, which owns 32,000 homes and is based in Norfolk, has been told it must make improvements to its governance to ensure it can manage risk “in line with its appetite”.

Flagship was downgraded from the top governance score of ‘G1’ to ‘G2’, which means it still complies with the standard but must improve to ensure it remains so.

In a regulator judgement published today, RSH said: “We have concluded that Flagship needs to improve the effectiveness of its risk management and internal controls assurance framework and aspects of its financial governance arrangements.