The Regulator of Social Housing has served an enforcement notice on My Space Housing Solutions (My Space).
RSH is using its powers to require My Space to:
- commission immediate advice on its ability to trade solvently
- appoint an appropriately skilled, experienced and independent Board to ensure that it has the capacity and governance to return to compliance
- appoint a new finance director
- write to all relevant local authorities informing them that My Space has concluded that it does not provide Specialised Supported Housing for the majority of its tenants
- develop action plans to address the issues identified by the regulator – including non-compliance with the rent standard
My Space must also engage with the regulator before it makes any new material property transactions or material changes to the organisation.
These enforcement actions follow a Regulatory Judgement published on 19 December 2022, which downgraded My Space’s already non-compliant grades to the lowest grades for both governance and financial viability (V4 / G4). In this judgement, the regulator concluded that My Space has continuously failed to address its non-compliance with the Governance and Financial Viability Standard and the Rent Standard, mismanaged its affairs, and failed to protect the interests of its tenants.
Harold Brown, RSH’s Senior Assistant Director for Enforcement and Investigations, said:
My Space has continuously failed to address the governance issues we have identified, including conflicts of interest with a connected property developer. It has also failed to provide assurance on its ability to meet its financial obligations.
This is unacceptable. We are using our enforcement powers to require My Space to undertake specific actions, including the appointment of a new, independent Board. My Space and its new Board must act immediately to put things right and if necessary we will use further powers against it if it fails to do so.
Notes to editors
A registered provider is responsible for ensuring that it manages itself effectively, achieves the standards set by the regulator, and engages positively with the regulator’s regulatory framework. Where a failure against a standard or other problem has been identified, the regulator expects providers to respond in a prompt and effective manner. It may be necessary for the regulator to step in and exercise its powers under S219 of the Housing and Regeneration Act 2008 (the Act) when a provider fails to do so.
Sections 219 to 225 of the Act allow the regulator to require a registered provider to take specified action to resolve a specified failure or other problem.
Where the regulator considers such a requirement necessary it will issue an enforcement notice. The regulator has published guidance on its use of this power and that document is available here.
Registered providers of social housing with more than 1,000 units are awarded both governance (G) and financial viability (V) grades for their compliance with the Governance and Financial Viability Standard. Grades of G1 and G2 indicate compliance with the governance element of the Governance and Financial Viability Standard, while grades of G3 and G4 indicate non-compliance. Similarly, V1 and V2 grades indicate compliance with the financial element and V3 and V4 grades indicate non-compliance. My Space’s gradings are G4 and V4.
RSH promotes a viable, efficient and well-governed social housing sector able to deliver and maintain homes of appropriate quality that meet a range of needs. It does this by undertaking robust economic regulation focusing on governance, financial viability and value for money that maintains lender confidence and protects the taxpayer. It also sets consumer standards and may take action if these standards are breached and there is a significant risk of serious detriment to tenants or potential tenants.
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