RSH says social homes could be lost if sale of Rosewood is not completed
Rosewood Housing, a for-profit registered provider owned by Inland Homes, has breached the Regulator of Social Housing’s governance and viability standard.
Inland Homes subsidiary non-compliant with RSH regulatory standards, and regulator warns social homes could be lost if Rosewood sale is not completed
RSH today published a regulatory notice stating that Rosewood Housing no longer complies.
This is due to the fact that its parent company, Inland Homes, is currently in administration and unable to provide the necessary support to the registered provider. Inand Homes announced that it was going to appoint administrators in September this year, after forecasting that it would make a £91million loss for the year.
The regulatory notice states that Rosewood Housing has not managed its resources effectively to ensure its viability can be maintained and does not have effective governance arrangements in place.
After its parent company Inland Homes released a profit warning in September 2022, Rosewood self-referred to the regulator.
The RSH said they identified that while the for-profit housing provider is continuing to trade, it is reliant on Inland Homes for financial support while the sale of Rosewood is concluded.
The RSH stated that registered providers are expected to have governance arrangements in place, particularly when they have unregistered parents, to ensure that the activities of the parent company do not impede the registered provider’s ability to comply with regulatory standards.
It warned that the sale of Rosewood needs to go through to prevent social homes currently owned by the provider from being lost. The provider manages 22 social homes, including nine affordable rent properties and 22 shared ownership. It had been planning to build a further 40 social homes.
RSH said Rosewood has taken steps to address the identified issues and is in discussions with Inland Homes to protect its viability.
Harold Brown, senior assistant director for investigations and enforcement, said: “As a result of unregistered elements in the group becoming insolvent, Rosewood’s social housing is potentially at risk of being lost to the sector. This is a serious failing and urgent action is required to ensure the continued operation of Rosewood, and that tenants’ homes are protected. We will consider using further powers if required.”
Rosewood intends to file its 2022 audited accounts by January 2024.
The administrators of Inland Homes, FRP Advisory, have declined to comment.