Decision

Plus Dane Housing Limited (L4556) - Regulatory Judgement: 18 December 2024

Updated 18 December 2024

Applies to England

Our Judgement

	Grade/Judgement	Change	Date of assessment
Consumer	C2 Our judgement is that there are some weaknesses in the landlord delivering the outcomes of the consumer standards and improvement is needed.	First grading	December 2024
Governance	G2 Our judgement is that the landlord meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance.	Downgrade	December 2024
Viability	V2 Our judgement is that the landlord meets our viability requirements. It has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance.	Assessed and unchanged	December 2024

Reason for publication

We are publishing a regulatory judgement for Plus Dane Housing Limited (Plus Dane) following an inspection completed in December 2024.

This regulatory judgement confirms a consumer grading of C2, a governance downgrade to G2 and a financial viability grading of V2.

Prior to this regulatory judgement, the governance and financial viability gradings for Plus Dane were last updated in December 2022 following a stability check and reactive engagement to confirm grades of G1 and V2. This is the first time we have issued a consumer grade in relation to this landlord.

Summary of the decision

From the evidence and assurance gained during the inspection, it is our judgement that there are some weaknesses in Plus Dane’s delivery of the outcomes of the consumer standards and improvement is needed, specifically in relation to the outcomes of the Safety and Quality Standard. Based on this assessment, we have concluded a C2 grade for Plus Dane.

Our judgement is that Plus Dane meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance. The approach to business planning, stress testing and mitigations needs strengthening and continuing improvement in the effectiveness of risk management and internal controls. Based on this assessment we have concluded a G2 grade for Plus Dane.

Our judgement is that Plus Dane meets our financial viability requirements and has the financial capacity to deal with a reasonable range of adverse scenarios.

However, it has a number of financial risks that need to be managed, including developing homes for low cost home ownership sale and making significant investment in its existing homes and services to tenants. Based on this assessment, we have concluded a V2 grade for Plus Dane.

How we reached our judgement

We carried out an inspection of Plus Dane to assess how well it is delivering the outcomes of the consumer standards and meeting our governance and financial viability requirements, as part of our planned regulatory inspection programme. Through the inspection, we considered all four of the consumer standards: Neighbourhood and Community Standard, Safety and Quality Standard, Tenancy Standard, and the Transparency, Influence and Accountability Standard.

During the inspection we observed a board meeting and a tenant scrutiny panel, spoke to tenants, held meetings with Plus Dane including with its non-executive directors, and reviewed a wide range of documents provided by Plus Dane.

Our regulatory judgement is based on all the relevant information we obtained during the inspection as well as analysis of information supplied by Plus Dane in its regulatory returns and other regulatory engagement activity.

Summary of findings 

Consumer – C2 – December 2024 

Plus Dane provided evidence-based assurance that it has appropriate systems for ensuring the health and safety of its tenants in their homes and associated communal areas. Plus Dane demonstrated that it has a clear understanding of its compliance with landlord health and safety requirements, and performance information demonstrated a good level of reported compliance with legal obligations.

The Safety and Quality Standard also requires landlords to have an accurate and up to date understanding of the condition of its homes at an individual property level based on a physical assessment of all homes and ensure that homes meet the requirements of the Decent Homes Standard (DHS). Through our inspection we identified that Plus Dane has a programme in place to gain an accurate and up to date record of the condition of its homes at an individual property level through physical surveys. However, it still has more to deliver in order to ensure that there is sufficient understanding of its homes at an individual property level and to make sure it is using this to inform investment plans.

Following an external review in September 2023, which identified significant improvement needed in Plus Dane’s identification and remediation of damp and mould cases, new processes and additional resources are in place. The changes made include ensuring there is prioritisation where there are household members with vulnerabilities and a comprehensive programme of training. There is a need for Plus Dane to ensure there is sufficient reporting and assurance on damp and mould performance so that the board can have effective oversight and provide appropriate challenge.

There are identified weaknesses in the provision of an effective, efficient and timely repairs and maintenance service. Plus Dane undertook a review of its repairs service in order to address a significant backlog of overdue repairs and poor customer satisfaction. A detailed repairs improvement plan is underway and there is evidence of outcomes improving, however progress is slower than initially anticipated. Plus Dane is not meeting its own targets for completing repairs and it is continuing to invest in its processes and systems to achieve the improvement committed to.

In relation to the Neighbourhood and Community Standard, we gained assurance that Plus Dane works in partnership with relevant organisations to deter and tackle anti-social behaviour and hate incidents in the neighbourhoods where it provides social housing. During the inspection the team witnessed Plus Dane responding positively to meet the needs of its tenants and to help ensure cohesion within the community.

Plus Dane has demonstrated that, in relation to the Tenancy Standard, it seeks to offer a range of tenures that are appropriate for the homes it lets, taking into account the purpose of the accommodation, the needs of individual households, the sustainability of the community and the efficient use of social housing.

In relation to the Transparency, Influence and Accountability Standard, we gained assurance that Plus Dane takes tenants’ views into account in decision-making about how services are delivered and communicates how tenants’ views have been considered. Plus Dane has a variety of opportunities for its tenants to engage with it and influence decisions that have an impact on them. Plus Dane seeks to use the information it holds about its tenants to tailor services to meet individual needs to deliver fair and equitable outcomes for tenants in relation to the housing and landlord services it provides. This will be strengthened further once remaining gaps in the information it holds about its tenants are addressed.

Plus Dane’s complaints handling service is in a period of transition. Prior to the inspection a review had taken place which identified a wide range of improvements and led to the establishment of a board-led complaints taskforce. Changes have been made to improve complaints handling performance and Plus Dane has put arrangements in place so that it learns from complaints to help drive service improvement and positive outcomes for tenants.   

Governance – G2 – December 2024

Based on the evidence gained from the inspection, there is assurance that Plus Dane’s governance arrangements are meeting the requirements of the Governance and Financial Viability Standard. However, we have concluded that it needs to improve aspects of its governance arrangements to support continued compliance with the standard.

Following external reviews and internal audits in 2023, Plus Dane identified weaknesses in the operation of its internal controls and concluded there was a need to improve its risk management and assurance framework. A number of action plans were developed and it has been delivering a range of changes to its structures, policies, processes and systems. As well as a focus on asset management services and complaints, Plus Dane has put in place a data governance programme to address issues with inconsistency in the quality and adequacy of the data it holds.

Plus Dane is continuing to make improvements to strengthen the board’s oversight of key risks across the organisation and there is evidence this is facilitating challenge to drive performance improvements. Plus Dane has undergone significant changes within its leadership team, which has the potential to impact on its capacity while it continues to recruit.

Whilst Plus Dane has made progress in delivering its plans through a period of significant organisational change, its board will need to gain assurance that this has resulted in the significant improvements needed. A revised risk and assurance framework facilitates clearer sight of lines of controls against strategic risks and there is an improved understanding of the adequacy of key controls. Further work, though, is required to ensure the board has sufficient assurance on the effectiveness and consistent operation of controls so that the risk of not delivering outcomes for tenants is managed.

During the inspection we identified that Plus Dane needs to improve its approach to business planning and stress testing to ensure that all risks to the plan have been robustly tested and understood by the Board, and that the Board’s response is supported by appropriate mitigation plans. Plus Dane is having to manage the impact of increased costs in most areas of its operations and it has included significant cost savings in its base financial plan alongside identifying potential savings as a key mitigating action. At present there is insufficient evidence of the board’s understanding of the deliverability of any savings and the impact if they are not achieved. Plus Dane plans to carry out further work on this as part of its wider value for money review which will inform the next iteration of stress testing.

Plus Dane’s board has demonstrated that there is regular and appropriate consideration of alternative options to deliver value for money and make best use of resources. During the inspection Plus Dane demonstrated that it reconsiders its strategy in the context of a changing operating environment and has reporting in place to monitor delivery of its purpose and objectives.

Plus Dane provided evidence that the relationship between its board and committees has been reviewed to give clarity on where responsibilities and accountabilities for key areas of risk and compliance sit within its leadership and governance structure.

Plus Dane has a structured approach to developing and appraising skills, experience and knowledge of board members to support succession planning. A number of governance reviews have been undertaken and the actions implemented.

There will be a need however for an in depth comprehensive external governance review to be carried out in due course so that the board is able to gain assurance on the effectiveness of its governance and alignment to the activities and associated risks of the organisation.

Viability – V2 – December 2024

Based on the evidence gained through the inspection, we have concluded that there is appropriate assurance that Plus Dane’s financial plans are consistent with, and support, its financial strategy. Plus Dane has an adequately funded business plan, with access to sufficient liquidity and security.

Plus Dane’s business plan has risks including significant investment in its homes and services to tenants, assumed increased sales of homes developed for sale for Low Cost Home Ownership over the next two years, financing costs and delivering future efficiency savings.

This will mean that Plus Dane has the capacity to respond to a reasonable range of adverse scenarios but it will need to manage these material risks.

Background to the judgement

About the landlord

Plus Dane is a charitable community benefit society. It was formed in 2008 following the merger of CDS Housing, established in 1976, and Dane Housing.

Plus Dane owns and manages around 13,250 homes across Merseyside and Cheshire. The group’s core focus is the delivery of social housing mainly for general needs together with some shared ownership, supported and sheltered housing, leasehold homes and extra care.

Based on the audited accounts for 2023/24, Plus Dane employed 541 full-time equivalent staff and generated a group turnover of £87.4m. The group’s development strategy sets a target to deliver 730 new homes by 2028 and invest £62m in existing homes by 2027.

Our role and regulatory approach

We regulate for a viable, efficient, and well governed social housing sector able to deliver quality homes and services for current and future tenants.

We regulate at the landlord level to drive improvement in how landlords operate. By landlord we mean a registered provider of social housing. These can either be local authorities, or private registered providers (other organisations registered with us such as non-profit housing associations, co-operatives, or profit-making organisations).

We set standards which state outcomes that landlords must deliver. The outcomes of our standards include both the required outcomes and specific expectations we set. Where we find there are significant failures in landlords which we consider to be material to the landlord’s delivery of those outcomes, we hold them to account. Ultimately this provides protection for tenants’ homes and services and achieves better outcomes for current and future tenants. It also contributes to a sustainable sector which can attract strong investment.

We have a different role for regulating local authorities than for other landlords. This is because we have a narrower role for local authorities and the Governance and Financial Viability Standard, and Value for Money Standard do not apply. Further detail on which standards apply to different landlords can be found on our standards page.

We assess the performance of landlords through inspections and by reviewing data that landlords are required to submit to us. In Depth Assessments (IDAs) were one of our previous assessment processes, which are now replaced by our new inspections programme from 1 April 2024. We also respond where there is an issue or a potential issue that may be material to a landlord’s delivery of the outcomes of our standards. We publish regulatory judgements that describe our view of landlords’ performance with our standards. We also publish grades for landlords with more than 1,000 social housing homes.

The Housing Ombudsman deals with individual complaints. When individual complaints are referred to us, we investigate if we consider that the issue may be material to a landlord’s delivery of the outcomes of our standards.

For more information about our approach to regulation, please see Regulating the standards.

Further information

• Regulating the standards

• Regulatory standards for landlords