The Regulator of Social Housing has downgraded Sustain (UK) Ltd to V3 meaning that the landlord does not meet the financial viability requirements and there are issues of serious regulatory concern.

Sustain provides supported housing in Birmingham through short term leases. It has not demonstrated it is able to manage its financial risk and that its business planning is sufficiently robust to ensure its long-term viability.

The regulator’s previous G3 grading remains unchanged. Its governance arrangements are not effective to ensure adequate oversight of third parties it relies on to deliver services to its tenants and to ensure that it is not inappropriately advancing third party interests.

The previous judgement that Sustain is not delivering the outcomes of the Rent Standard also remains unchanged.

Jonathan Walters, Deputy Chief Executive of RSH, said:

“It is disappointing that Sustain has not made the necessary improvements in its governance since the last judgement.   

 “Failing to meet the requirements of the rent standard in this case has given rise to serious financial risks.  

“It must now take effective action to demonstrate a financial plan that is based on appropriate and reasonable assumptions that protects its homes and delivers quality services for its tenants.”

Separately, RSH has placed Phoenix Community Housing Association on its gradings under review list.

RSH is currently investigating matters which may indicate serious failings in the landlord delivering the outcomes of the Governance and Financial Viability Standard and the Consumer Standards. The outcome of the investigation will be confirmed in a regulatory judgement, once completed.