The Regulator of Social Housing (RSH) has clarified its approach to for-profit registered providers (RPs) in an update to Regulating the Standards. The RSH has confirmed that it expects all RPs to meet the same standards, regardless of whether they have a for-profit or not-for-profit business model. However it recognises that for-profit providers have different capital structures and cash flow dynamics and are often part of wider groups of connected companies rather than standalone organisations.
The RSH will publish its first Regulatory Judgements (RJs) for for-profit providers following the completion of In Depth Assessment (IDAs). Narrative regulatory judgements relating to for-profit providers will include an explanatory statement to make it clear that the RSH’s judgement concerns the RP only and does not represent an assessment of non-registered entities within the group or their ability to provide support to the RP, although the RSH does take into account risks to the registered provider from its relationships with the wider group. To provide further clarity the RSH will use an asterisk with a for-profit provider’s grade (e.g. G1*) to make it clear that the assessment refers to a provider that is designated on the register as being for-profit.