Regulatory Judgement on Islington and Shoreditch Housing Association Limited L0457
August 2021
Regulatory Judgement Islington and Shoreditch Housing Association Limited L0457
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 Islington and Shoreditch Housing Association Limited L0457
Provider Details
Origins
Islington and Shoreditch Housing Association Limited (ISHA) is a registered provider and a charitable community benefit society. ISHA’s core business is the provision of general needs and shared ownership housing.
Registered Entities
ISHA is the only registered entity.
Unregistered Entities
ISHA has a single, wholly owned, unregistered subsidiary, Urban Style, which is currently dormant.
Geographic Spread and Scale
ISHA owns and manages around 2,300 homes across six local authority areas within Greater London.
Staffing and Turnover
At 31 March 2021, ISHA employed 62 full time equivalent staff members. ISHA’s unaudited turnover for the year to 31 March 2021 was £23.5m.
Development
ISHA forecasts the development of 172 units between 2022 and 2026. The units will be allocated between social or affordable rented housing and shared ownership.
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Regulatory Judgement Islington and Shoreditch Housing Association Limited L0457
Regulatory Judgement
This judgement confirms the regulator’s existing assessment of ISHA’s governance and viability (G1/V2).
Following completion of an In Depth Assessment (IDA), the regulator has assurance that ISHA 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. ISHA has an adequately funded business plan, sufficient security and is forecast to continue to meet its financial covenants.
ISHA is undertaking building safety works requiring significant expenditure. As a result, interest cover is forecast to remain weak for at least the next five years. This increased investment in its stock reduces ISHA’s financial capacity and gives rise to material risks that the provider needs to continue to manage.
The regulator’s assessment of ISHA’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 ISHA’s governance arrangements enable it to adequately control the organisation and to continue meeting its objectives.
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Regulatory Judgement Islington and Shoreditch Housing Association Limited L0457
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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