Regulator announces probe into Blackrock-backed ‘for-profit’ provider’

A ‘for-profit’ provider is being investigated by the Regulator of Social Housing (RSH) over potential governance standard failures.

Heylo Housing, which owns around 7,000 properties, has been placed on the RSH ‘gradings under review’ list.

A notice from RSH said: “The regulator is currently investigating a matter which may impact on the provider’s compliance with the governance element of the governance and financial viability standard.

“Once completed, the outcome of the investigation will be confirmed in a regulatory judgement.”

RSH does not comment on the reasons it places a provider on the list until its investigation is complete.

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Heylo Housing purchases portfolios of stock through section 106 planning agreements and offers the properties through its part-rent part-buy Home Reach scheme.

Last year global investment giant Blackrock acted as the majority debt provider on Heylo’s £362m acquisition of 3,000 shared ownership homes.

Housebuilder Vistry Group last year agreed a deal to commit 1,000 homes to Heylo’s Home Reach programme.

A Heylo spokesperson said: “Heylo is the first-for-profit RP to go through an In-Depth Assessment (IDA). We found it a really constructive process and a positive opportunity to engage with the regulator about our organisation and how we can ensure it operates in the most effective and appropriate way.

“We are confident that by continuing to work with the regulator closely any remaining questions will be addressed.”