Regulator initiates rare statutory inquiry into London-based social housing landlord

RSH can hold an inquiry where it suspects that the affairs of a landlord may have been mismanaged, if it has failed to meet a regulatory standard or there is a risk that, if no action is taken by the regulator or the landlord, it will fail to meet a standard.

ASHA is a London-based landlord providing social housing in London and supported exempt accommodation in Birmingham. It is a Community Benefit Society and is designated as a not-for-profit provider.

The inquirer, who is independent from the RSH, 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.

The scope of the inquiry may be amended or extended during the course of the inquiry if necessary.

RSH Chief Executive Jonathan Walters said: “A statutory inquiry is a serious regulatory tool that we only use very rarely. 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.”

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.”

RSH will consider the findings of the inquiry and determine whether any further regulatory action is appropriate. RSH will publish the outcome of the inquiry following its conclusion.

Harry Rodd