RSH Initiates Independent Investigation into Social Housing Landlord Practices

The Regulator for Social Housing (RSH) possesses the authority to initiate an inquiry if there are concerns regarding the possible mismanagement of a landlord’s affairs, failure to meet regulatory standards, or the risk of non-compliance if no action is taken by either the regulator or the landlord.

Statement from RSH Chief Executive

In light of the situation, RSH Chief Executive Jonathan Walters remarked, “A statutory inquiry is a serious regulatory tool that we only use very rarely. This reflects the severity of our concerns with ASHA and its longstanding failure to put things right. We will use the independent findings to inform our next steps.”

ASHA, a London-based landlord, is engaged in providing social housing in London and supported exempt accommodation in Birmingham. It operates as a Community Benefit Society and is recognised as a not-for-profit provider.

RSH has formally notified ASHA and other relevant stakeholders regarding the initiation of the inquiry.

Inquiry Scope and Objectives

The inquiry will be conducted by an independent party, although RSH will outline the specific matters on which the inquiry is to focus. The inquirer is tasked with investigating the following areas:

• Determining whether there are any actual, potential, or perceived conflicts of interest within ASHA’s executive team or board.
• Assessing whether the Board and Executive possess the requisite skills, independence, and effectiveness to manage ASHA’s affairs appropriately.
• Investigating any evidence that ASHA, its officers, employees, or agents have engaged in arrangements or transactions that benefit third parties.
• Evaluating whether ASHA’s social housing assets have been used in a manner inconsistent with applicable policies, procedures, regulatory requirements, and relevant legislation.
• Identifying any officers, employees, or agents of ASHA that may have contributed to mismanagement or failure to comply with established standards.
• Considering whether any of the issues mentioned above, or any additional concerns uncovered during the inquiry, constitute mismanagement or a failure to meet applicable standards.

The inquiry’s scope may be subject to modification or extension as deemed necessary during its progression.

Potential Regulatory Actions

RSH retains specific enforcement powers that can only be exercised once an inquiry has commenced, provided certain conditions are met. Upon reviewing the inquiry’s findings, RSH will ascertain whether further regulatory action is warranted. The results of the inquiry will be made public following its completion.

It is essential for a registered provider to manage its operations effectively, achieve the standards set by the regulator, and maintain a constructive relationship with the regulatory framework. Should any deficiencies be identified in meeting these standards, the regulator expects a swift and effective response from the provider. In instances where a provider fails to address such issues, the regulator may intervene and exercise its powers under the Housing and Regeneration Act 2008, as amended. Guidance on the application of these regulatory and enforcement powers has been published.

Background and Regulatory Compliance

Section 206(1) of the Act outlines the grounds under which the regulator may conduct an inquiry. Additional guidance on the utilisation of inquiries is available on the RSH website.

In July 2021, RSH issued a regulatory notice indicating that Ash-Shahada Housing Association Limited was non-compliant with the governance aspects of the Governance and Financial Viability Standard. The notice highlighted failures in establishing effective governance arrangements, demonstrating a robust risk and control framework, and managing affairs with the necessary skill and diligence.

ASHA currently manages fewer than 1,000 units of social housing, categorising it as a small provider. RSH does not assign grades to small providers and only publishes or updates regulatory judgments (previously referred to as ‘regulatory notices’) when significant weaknesses or failures in achieving standards are identified.

In 2025, RSH previously made statutory appointments to ASHA’s board.

For any media inquiries, please refer to the Media Enquiries page. For general inquiries, you may contact enquiries@rsh.gov.uk.