North London Muslim Housing Association (NLM) was unable to provide evidence that it has ensured its governance arrangements are aligned with the activities and risks of the organisation.
Weaknesses in performance reporting meant the board was unable to monitor the delivery of NLM’s strategic objectives and effective management of strategic risks.
Significant improvements are also needed to NLM’s risk, control and assurance approach.
RSH also found serious failings in its delivery of its health and safety responsibilities, with NLM initially failing to register all of its high-rise buildings with the Building Safety Regulator.
RSH has limited assurance that NLM has taken sufficient mitigating actions to manage risks while fire safety remediation work is completed, including ensuring emergency evacuation plans are in place for all relevant tenants.
While NLM is delivering the required outcomes in other areas of landlord health and safety, it has failed to meet legal obligations to conduct asbestos surveys in the communal areas of buildings.
NLM received a V2 viability grading, meaning it has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance.
NLM has also, over a prolonged period, been in breach of its own treasury strategy rules which requires a level of its debt to be at a fixed rate. This leaves it vulnerable to interest rate rises and means it is unable to maximise the resources it has for investing in its homes.
NLM is engaging constructively with RSH as it makes the necessary changes.
Kate Dodsworth, Chief of Regulatory Engagement at RSH, said:
We are continuing to engage intensively with NLM to ensure sufficient progress is made, including strengthening both their governance arrangements and the board’s oversight of risk.
Governance issues are also often the root cause of problems in delivering the outcomes of the consumer standards and any risks to tenants are properly managed and mitigated.
Our proactive inspections are continuing to bring important issues to light and this is vital for improving social housing in the long-term.
Notes to Editors
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On 1 April 2024 RSH introduced new consumer standards for social housing landlords, designed to drive long-term improvements in the sector. It also began a programme of inspections for all large social landlords (those with over 1,000 homes) over a four-year cycle. The changes are a result of the Social Housing Regulation Act 2023 and include stronger powers to hold landlords to account. More information about RSH’s approach is available in its document Reshaping Consumer Regulation.
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More information about RSH’s responsive engagement, programmed inspections and consumer gradings is also available on its website.
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RSH promotes a viable, efficient and well-governed social housing sector able to deliver more and better social homes. It does this by setting standards and carrying out robust regulation focusing on driving improvement in social landlords, including local authorities, and ensuring that housing associations are well-governed, financially viable and offer value for money. It takes appropriate action if the outcomes of the standards are not being delivered.
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