Regulator downgrades major housing association amid governance concerns

The Regulator of Social Housing (RSH) has downgraded the regulatory grading for A2Dominion Housing Group, which has 39,000 homes in London and Southern England.

In a regulatory judgement published this week (3 January 2024), the RSH concluded that A2Dominion had not met the required governance outcomes of the Governance and Financial Viability Standard.

As a result, it has been downgraded to G3 status. A2Dominion’s current viability grade (V2) is unchanged. The landlord’s previous grading was G1/V2, before it was placed under review in September 2023. 

The Regulator said it lacked assurance that A2Dominion has a robust risk management, internal control and assurance framework that enables it to manage and mitigate risks. "The provider has failed to manage key risks effectively which has led to some poor outcomes for tenants.”

It also lacked assurance that A2Dominion’s data and systems were adequate. “These issues have led to the provider producing poor-quality data and hindering the board’s oversight of the organisation,” the Regulator said.

The RSH acknowledged that A2Dominion’s CEO and Chair had been positively engaging with RSH, with the social landlord working to address the governance issues identified by the regulator's investigation and return to a position of meeting the required governance outcomes.

Harold Brown, Senior Assistant Director for Investigations and Enforcement at RSH, said: “We found significant issues with A2Dominion’s data and its business planning, risk and control framework, leading to a failure by the provider to manage key risks effectively. A2Dominion are working with us to address these issues and we will continue to monitor the provider as it works to return to compliance.”

Responding to the regulatory judgement, A2Dominion said it would continue to engage closely with the regulator in order to return to a fully compliant governance grading. "Together, we are putting a plan in place.”

It stressed that the new grading does not affect any of its services to customers nor the communities it serves. The organisation will continue to deliver its day-to-day operations as normal.

Ian Wardle, Chief Executive Officer of A2Dominion, said: “We know that outcomes for some customers have been poor and last year I issued an apology to all customers who may have been adversely affected.  

“While we have made some improvements, work is still underway to fully resolve issues with repairs, service charges, complaints, damp and mould, latent defects and the roles and responsibilities with managing agents. 

“We also know that our services aren’t as responsive as they could be.  In some of these areas, we aren’t always delivering the high standards we set ourselves and customers expect.”

Wardle continued: “While we are disappointed to be downgraded it is also a huge opportunity to reset and get things right. 

“A2Dominion is a special organisation with a new strategy and renewed focus as a charitable housing association to ensure that by 2030 all our residents live in a home that they love and that we are trusted to provide safe, high-quality homes and services.  

“We remain committed to building as many new affordable homes as we able to afford to do so. We are all determined to get things right.”