Landlord’s governance grade remains non-compliant nearly two years on from original judgement
The Regulator of Social Housing (RSH) has stressed it could take further regulatory action as it continues to monitor progress at non-compliant landlord Notting Hill Genesis (NHG).
The RSH today updated the 66,000-home landlord’s regulatory judgement following a stability check, re-confirming its non-compliant G3 grade for governance and C3 consumer grade along with its compliant V2 rating for viability.
An RSH spokesperson said: “RSH continues to engage intensively with NHG as it delivers the required improvements and is monitoring their progress closely.
“RSH is considering alternative resolution options should they be needed and could take regulatory action if required.”
NHG was downgraded to a non-compliant ‘G3’ governance grade by the RSH in November 2024. RSH at the time found serious concerns with NHG’s business planning and risk and control frameworks that have led to ‘poor outcomes’ for tenants. It found failures against the new consumer standards including a substantial backlog of overdue fire remediation actions a lack of data on whether legal requirements had been met in a large number of third party managed buildings; a repairs backlog and a lack of accurate data.
An RSH spokesperson declined to comment on which of its powers it could use. The regulator has a range of options open to it including enforcing commitments in a binding requirement, removing or appointing officers, ordering structural changes, complusory de-registration, or ordering a wind-down.
Jonathan Walters, chief executive of RSH, said: “Our work always involves planning for a range of options with providers who are not meeting our standards, with the potential to use powers if providers are unwilling or unable to respond appropriately.”
However NHG has been working on an improvement plan since 2024 and there have already been numerous changes at the top of the organisation. Patrick Franco, chief executive, departed the landlord in September, with former Network boss Helen Evans drafted in as interim. Earlier this year CFO Mark Smith stood down and NHG drafted in Ken Youngman, formerly of Family Mosaic as interim. It also last year appointed former Peabody boss Brendan Sarsfield as chair and hired Curo boss Victor da Cunha as chief customer officer.
NHG which filed its accounts late for two years running, earlier this month recorded a pre-tax deficit of £284.6m, more than double the £130m reported for the prior year. It incurred a series of one-off costs including asset revaluations and building safety provisions.
An NHS spokesperson said: “We are making changes to strengthen how we manage the organisation, improve services for residents and put NHG on a stronger and more sustainable footing. There is more to do, and we will continue to work openly with the regulator as we deliver on our plans to stabilise and simplify the organisation.”
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