bpha statement on regulatory assessment

Following its annual regulatory review on 16 December 2020, the Regulator of Social Housing (RSH) has reaffirmed bpha’s G1 Governance rating but regraded its viability to V2.

In its judgement the RSH says; “… that bpha complies with the financial viability element of the Governance and Financial Viability Standard and that its financial plans are consistent with, and support, its financial strategy. bpha has an adequately funded business plan, sufficient security and is forecast to continue to meet its financial covenants”.

During a year which has seen significant disruption and economic uncertainty, we remain committed to the delivery of our corporate strategy, providing affordable, safe and well serviced homes for our customers.

Julian Pearce, Chief Financial Officer said: “We are reassured the regulator has confirmed that we continue to meet their financial viability requirements and that we have the financial capacity to deliver our strategy of investing in new and existing homes, as well the reaffirmation of the highest Governance rating.”

The regrade reflects our conscious and measured decision to continue investing in ensuring that our customers live safely in their homes and receive the high standards of customer service that they have come to expect. We understand the regulator’s V2 assessment but are confident that our continued investment in our existing properties and new homes is the right thing to do whilst managing risk exposure.

We have a very robust approach to risk management and our Board and Executive team have completed detailed work around financial risks and the mitigating actions we would take in a range of scenarios.

After raising funding in February 2020, we have a high liquidity position and all of our current commitments are fully funded.

You can read the regulatory judgement online here.

The full financial report for 6 months to 30 September 2020 is available at: investors.bpha.org.uk/annual-interim-reports/