London & Quadrant Housing Trust Regulatory Judgement for Governance and Viability (4352G)
November 15 2022 - 3:00AM
UK Regulatory
TIDM44EB
RNS Number : 4352G
London & Quadrant Housing Trust
15 November 2022
London & Quadrant Housing Trust Regulatory Judgement for
Governance and Viability
Following an In-depth Assessment (IDA) of our governance and
viability, L&Q has today been graded as G1/V2 by the Regulator
of Social Housing (the Regulator).
Commenting on the judgement Waqar Ahmed, Group Director, Finance
said
"Firstly, we are very pleased that the Regulator has recognised
the strength of our governance structures and processes by
re-affirming our top-tier G1 rating.
We strive for continual improvement in this area, and in recent
months we have further strengthened our governance with the
appointment of several new board directors, whose varied experience
and expertise will be integral in delivering our ambitious
corporate objectives over the coming years.
Along with others in the sector, our viability rating has been
downgraded from V1 to V2, and this judgement was not
unexpected.
With a medium-term shift to higher interest rates, cost
pressures on supply chains and affordability pressures on sales,
the whole sector is operating in a weaker economic environment.
This has been recently noted by the Regulator.
V2 remains a compliant grade and the Regulator recognises that
we manage financial viability well, but it reflects L&Q's
decision to prioritise residents by diverting funds into homes,
services and communities at a time when the sector is facing these
unprecedented economic challenges.
As previously stated, we have decided to substantially increase
investment in residents' homes. In the financial year ending March
31 2022, we more than doubled our major repairs spend to GBP71m,
and total maintenance spend was GBP274m. Over the same period, we
also invested GBP531m in new social housing.
We are actively monitoring, managing and mitigating the wider
challenges in our operating environment and are confident that our
good governance and financial strength will enable us to continue
delivering our corporate objectives. As the Regulator notes in
their judgement, we have an adequately funded business plan, with
sufficient asset security and liquidity, and we are forecast to
continue meeting our financial covenants."
For further information, please contact:
investors@lqgroup.org.uk
James Howell, Head of External Affairs 020 8189 1596
www.lqgroup.org.uk
END
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