Regulator of Social Housing announcement

The Regulator of Social Housing has announced that Origin’s governance and financial viability grading has been reduced to a non-compliant grading of G3 V3 due to issues with our oversight and handling of financial challenges.

We have recognised the need to improve our financial processes and reporting and have been taking the right steps to strengthen control of our finances, especially given the impact of broader economic pressures and of rising demand and costs on our financial plan.

We have a new Finance Director, Mark Farrar,  who is helping to steer us through the challenges and we are building a stronger skill-base within the finance function in order to better support the wider business. We commissioned an independent audit of budgetary controls and reporting in July 2023 which concluded in September, and we are implementing the recommendations in full.  

A further independent review into the covenant challenge related to one particular lender is underway. We are committed to working in partnership with the Regulator, our lenders and independent expert advisors to strengthen assurance and regain a compliant rating and will incorporate the RSH findings into our action plan.

We began the process of selecting a prospective merger partner over a year ago, recognising the increasingly challenging operating environment and the need to enhance financial strength and capacity to invest in our residents’ homes, services and local communities. We selected Places for People for initial discussions in May 2023 and announced the partnership proposal in October, with a view to joining the Group in Spring 2024 .

Our focus throughout remains on meeting the needs of our residents at this difficult time.