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ENFORCEMENT NOTICE

Section 219 HOUSING AND REGENERATION ACT 2008 (鈥渢he Act鈥�)

Introduction

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鈥檚 regulatory framework. Where a failure against a standard or other problem has been identified, the regulator expects a registered provider to respond in a prompt and effective manner. It may be necessary for the regulator to step in and exercise its powers under section 219 of 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 by issue of an enforcement notice. The regulator has published guidance on its use of this power which can be found here.

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.

The Regulatory Standards that registered providers of social housing are required to meet can be found here together with our approach to regulating the standards.

Grounds for issuing this enforcement notice

On 28 March 2023, the regulator published a Regulatory Notice^{[footnote 1]} concluding Easy Housing Association (EHA) was not meeting the Governance and Financial Viability Standard. The regulator has engaged intensively with EHA and has assessed actions taken by EHA to address the issues raised in the regulatory notice.

The regulator has concluded that EHA has failed to deliver the outcomes of the Governance and Financial Viability Standard, in that it is unable to:

• Ensure effective governance arrangements that deliver its aims and objectives and intended outcomes for tenants and potential tenants in an effective, transparent and accountable manner

• Manage its resources effectively to ensure its viability is maintained while ensuring that its social housing assets are not put at undue risk;

• Manage its affairs with an appropriate degree of skill, independence, diligence, effectiveness, prudence and foresight;

• Ensure that it has an appropriate, robust and prudent business, planning, risk and control framework which ensures:

(a) there is access to sufficient liquidity at all times

(b) financial forecasts are based on appropriate and reasonable assumptions;

(c) effective systems are in place to monitor and accurately report delivery of the registered provider鈥檚 plans; and听

(d) the financial and other implications of risks to the delivery of plans are considered听

• assess, manage and where appropriate address risks to ensure the long-term viability of the registered provider, including ensuring that social housing assets are protected by:听

(a) maintaining a thorough, accurate and up to date record of its assets and liabilities and particularly those liabilities that may have recourse to social housing assets; and听

(b) carrying out detailed and robust stress testing against identified risks and combinations of risks across a range of scenarios and putting appropriate mitigation strategies in place as a result听

(c) before taking on new liabilities, ensuring that it understands and manages the likely impact on current and future business and regulatory compliance

• ensure that the arrangements it has entered into do not inappropriately advance the interests of third parties or are arrangements which the regulator could reasonably assume were for such purposes.听

• Ensure accurate and timely communication with the regulator

• Ensure timely communication to the regulator on material issues that relate to non-compliance or potential non-compliance with the standards

Further, the regulator has concluded EHA has failed to provide adequate assurance that it is delivering the outcomes of the Rent Standard and/ or meets exceptions from the Rent Standard for homes it classifies as Specialised Supported Housing (SSH).听

The regulator is serving EHA with an enforcement notice by virtue of its powers under sections 219 to 225 of the Act.听 Specifically, the grounds for issuing an enforcement notice are under section 220(1) of the Act,

• Case 1 鈥� that EHA has failed to meet the requirements of the standards under section 194 of the Act.听

• Case 5 鈥� that the interests of EHA social housing tenants require protection

Specified actions

The regulator directs that EHA takes the following actions:

1.To a scope agreed with the regulator, EHA must commission an independent appraisal (the Appraisal), to be carried out by a party with relevant skills and expertise to address how it will deliver the outcomes of the standards which includes (but is not limited to) a review of:

(a) Board skills, effectiveness and leadership capacity;

(b) Adequacy of board reporting and record keeping;

(c) Management skills, effectiveness and gaps in capacity for the management of EHA鈥檚 social housing affairs

(d) Accuracy of EHA鈥檚 asset and liability register and classification of stock with a clear breakdown of its social and non-social housing properties and the methodology used in determining each stock type.

(e) Financial risks and obligations which impact EHA鈥檚 long-term viability, as well as management of risks to its short to medium term liquidity

(f) Business planning, risk and control framework including:

• financial forecasts based on appropriate and reasonable assumptions, within a 30-year business plan; and
• Stress testing and mitigation strategies
• Effective systems are in place to monitor and accurately report delivery of the registered provider鈥檚 plans

(g) Management of actual and/or potential conflicts of interest;

(h) Whether EHA has entered into arrangements which inappropriately advance third party interests;

(i) Meeting landlord health and safety obligations and its capacity to meet those obligations on an ongoing basis

(j) Meeting the requirements of the Rent Standard and/or exceptions claimed from the Rent Standard for SSH

2.Based on the outcome of the Appraisal EHA must submit an action plan and timetable for agreement with the regulator to address how it will deliver the outcomes of the regulatory standards and/ or a plan for managed wind down and voluntary de-registration.

3.EHA must provide the following to the regulator:

(a) the draft written scope of the commission of the Appraisal and list of proposed parties to carry out the Appraisal no later than 8 September 2025;

(b) the completed Appraisal report no later than 42 days from the date the regulator approves the scope of the Appraisal in writing;

(c) the board approved action plan based on recommendations arising from the Appraisal with timescales for implementation and regular reporting on delivery to the regulator, together with minutes of board discussions relating to the Appraisal outcome, no later than 28 days from the completion of the Appraisal; and

(d) written confirmation of reclassification of stock where applicable and the review of alternative options to be completed no later than 28 days from the completion of the Appraisal.

(e) EHA is required to engage as soon as reasonably practicable with the regulator before entering any agreement to own or manage any additional properties while the enforcement notice remains in place.

The Regulator of Social Housing expectations

The regulator expects EHA to co-operate fully, and to co-ordinate its communications strategy on all matters relating to enforcement actions with the regulator, and to give the regulator the opportunity to comment on the content and timing of any news releases or other public statements.

Further Information

• 听In coming to the decision set out in this enforcement notice, the regulator has had regard to Statutory guidance under s215 of the HRA 2008 鈥榳ith particular reference to 鈥楪uidance note 5鈥�.

• 听Please note that a registered provider who is given an enforcement notice may appeal against it to the High Court pursuant to the Housing and Regeneration Act 2008.

• 听The regulator may withdraw the enforcement notice at any time by giving notice to the registered provider.

• 听厂丑辞耻濒诲 EHA fail to comply with this enforcement notice, the regulator may consider exercising other regulatory or enforcement powers.

• 听The regulator may choose to publicise the serving of this enforcement notice.

• 听Any information or correspondence pertaining to this enforcement notice should be sent to the regulator, addressed to:

Fiona MacGregor

Chief Executive

Regulator of Social Housing

Level 2,

7-8 Wellington Place Leeds

LS1 4AP

Please note the regulator does not accept service of legal proceedings by email. Any service of legal proceedings are required by post to the above address.

Signed on behalf of the regulator

Fiona MacGregor

Chief Executive

Dated 10 July 2025