Investigation will look into the governance of Ash-Shahada Housing Association Limited
The Regulator of Social Housing (RSH) has commissioned an independent statutory inquiry into Ash-Shahada Housing Association Limited (ASHA), in what is understood to have been only the second time it has ever used these powers.
The scope of the investigation into London-based ASHA, which has fewer than 1,000 social homes, includes whether its board and executive team have the necessary skills and effectiveness to manages its affairs, whether it has used any assets illegally and whether any staff members or agents have entered into any financial arrangements “for the purpose of advancing the interest of any third parties”.
This follows a regulatory notice published by RSH in July 2021 concluding that ASHA was non-compliant with the governance elements of the governance and financial viability standard. In 2025, RSH made three statutory appointments to its board to help it “resolve the governance failures”.
RSH chief executive Jonathan Walters described a statutory inquiry as a “serious regulatory tool that we only use very rarely”.
He said: “This reflects the severity of our concerns with ASHA and its longstanding failure to put things right. We will use the independent findings to inform our next steps.”
ASHA operates across the London boroughs of Lambeth and Southwark. It withdrew its operations from Birmingham earlier this year, where it provided supported exempt housing.
A spokesperson on behalf of the board of ASHA, said: “We are extremely disappointed and surprised by today’s announcement and do not recognise the picture it paints of ASHA. We have made real changes to how ASHA is run, including our decision to step away from supported exempt accommodation in Birmingham, and we have taken independent advice at every stage.
“This has included commissioning independent investigations to ensure we meet governance and regulatory requirements. At all material times we have sought independent and legal advice to support our decisions. We will cooperate fully with the inquirer and are confident the evidence will show the progress we have made and that decisions are supported by independent and legal advice received. Our priority remains the tenants who rely on us. We are now assessing our options and engaging with legal advice.”
The inquiry is the first launched since RSH became a standalone entity in 2018. In 2012, then regualtor the Homes and Communities Agency used its full statutory powers to investigate Cosmopolitan Housing Group, which was subsequently taken over by Sanctuary Group and dissolved.
Scope of the inquiry
The inquirer is independent from RSH. However, RSH specifies the matters on which the inquirer is to report. The scope of the inquiry may be amended or extended during the course of the inquiry if necessary.
The inquirer is required to examine the following matters and make findings on whether:
- There are or have been any actual, potential, or perceived conflicts of interest within ASHA’s executive team or board.
- The Board and Executive have the necessary degree of skills, independence and effectiveness to manage ASHA’s affairs.
- There is any evidence that ASHA, its officers, employees or agents have entered into any arrangements or transactions, made payments, or conferred other benefits for the purpose of advancing the interests of any third parties.
- There have been any instances of ASHA’s social housing assets being used in a way that may be inconsistent with applicable policies, procedures, regulatory requirements and any relevant law.
- Any officer, employee or agent of ASHA, has contributed to any mismanagement or failure to comply with a standard, and if so to identify such individuals.
- Any matters referred to above, or any other matters uncovered by the inquirer in the course of the inquiry, individually or collectively, constitute mismanagement a failure to meet any of the applicable standards.
