Regulatory Judgement on 4878

Including the following registered entities:

• Charlton Triangle Homes Limited L4212 • Peabody Developments Limited L3885 • Peabody South East Limited 4869 • Town and Country Housing L4251

May 2021

Regulatory Judgement Peabody Trust 4878

Publication Details

Reason for publication

Changed basis for Viability grade

Regulatory process

In Depth Assessment

Please see the definitions in Annex 1 for more detail

Governance

G1 (Compliant)

The provider meets our governance requirements.

Viability

V2 (Compliant)

The provider meets our viability requirements. It has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance.

Key to grades

G1 / V1 Compliant G2 / V2 Compliant G3 / V3 Non-compliant and intensive regulatory engagement. G4 / V4 Non-compliant, serious failures leading to either intensive regulatory engagement or the use of enforcement powers.

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Regulatory Judgement Peabody Trust 4878

Provider Details

Origins

Peabody Trust (Peabody) is a charitable community benefit society. It is the asset owning parent of a group that comprises 39 legal entities including the parent. The group’s principal activities relate to the development and management of social housing, including care and support services and community operations.

Registered Entities

Peabody is the registered parent and majority stock holding entity within the group. It has four registered provider subsidiaries:

• Charlton Triangle Homes Limited is a registered provider, registered charity and company limited by guarantee. It owns and manages around 1,200 homes in the Royal Borough of Greenwich.

• Peabody Developments Limited is a registered provider and non- charitable community benefit society which engages in mixed purpose development and sale. It aims to maximise its surplus to donate to Peabody.

• Peabody South East Limited is a registered provider and exempt charitable community benefit society, established to hold properties outside of . It owns and manages about 1,860 homes.

• Town and Country Housing is a registered provider and exempt charitable community benefit society which joined the group in 2019. It owns and manages about 9,000 homes.

Unregistered Entities

There are 27 active unregistered entities in the group including seven management companies. The principal unregistered entities are:

• Peabody Construction Limited, a commercial development entity.

• Peabody (Services) Limited, a commercial, residential-led property developer and provider of construction services to the group.

• Peabody Land Limited, Peabody Waterfront Limited, Tilfen Land Limited and Waterfront LLP which are all engaged with regeneration activities in Thamesmead.

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Regulatory Judgement Peabody Trust 4878

• Peabody Capital plc, Peabody Capital No. 2 plc and TCHG Capital plc which are treasury vehicles.

• The Donation Fund and the Peabody Community Foundation which are registered charities.

• Peabody Group Maintenance Limited which is the group’s repairs and maintenance subsidiary.

Geographic Spread and Scale

Peabody has 66,000 homes in London and the South East. Most of its stock is in the boroughs of , , Greenwich and Hackney. Outside of London, Peabody has a significant number of homes in Essex.

Staffing and Turnover

As at 31 March 2020, Peabody employed 2,869 full time equivalent staff and had a turnover of £662 million.

Development

Peabody aims to develop 9,000 units in the period from 2020 to 2025. The units will be allocated between social or affordable rent, shared ownership and market sale.

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Regulatory Judgement Peabody Trust 4878

Regulatory Judgement

This judgement confirms the regulator’s existing assessment of Peabody’s governance and viability (G1/V2).

Following completion of an In Depth Assessment (IDA), the regulator has assurance that Peabody complies with the financial viability elements of the Governance and Financial Viability Standard and that its financial plans are consistent with, and support, its financial strategy. Peabody has an adequately funded business plan, sufficient security and is forecast to continue to meet its financial covenants.

Peabody’s financial plan contains high levels of stock investment expenditure, including significant fire and building safety works, putting pressure on its interest cover ratios. Alongside this, it is delivering a large and diverse development and regeneration programme. These exposures give rise to material risks that Peabody needs to continue to manage, and which reduce its capacity to respond to adverse events.

The regulator’s assessment of Peabody’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. Based on the evidence gained from the IDA, the regulator has assurance that Peabody’s governance arrangements enable it to adequately control the organisation and to continue meeting its objectives.

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Regulatory Judgement Peabody Trust 4878

Annex 1: Definitions of Regulatory Processes

In Depth Assessment (IDA)

An IDA is a bespoke assessment of a provider’s viability and governance, including its approach to value for money. It involves on-site work and considers in detail a provider’s ability to meet its financial obligations and the effectiveness of its governance structures and processes.

Stability Checks

Based primarily on information supplied through regulatory returns, a Stability Check is an annual review of a provider’s financial position and its latest business plan. The review is focused on determining if there is evidence to indicate a provider’s current judgements merit reconsideration.

Reactive Engagement

Reactive engagement is unplanned work which is triggered by new information or a developing situation which may have implications for a provider’s current regulatory judgement.

Stability Checks and Reactive Engagement

In some cases, we will publish narrative regulatory judgements which combine evidence gained from both Stability Checks and Reactive Engagement.

Further Information

For further details about these processes, please see ‘Regulating the Standards’ on https://www.gov.uk/rsh.

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