Heylo Housing Registered Provider Limited, a for-profit social housing landlord, has been downgraded to G4* and V4* by the Regulator of Social Housing (RSH). This marks the lowest possible governance and viability grades, following serious regulatory concerns.
The RSH concluded that Heylo RP does not meet the governance or financial viability requirements of its regulatory standards. The landlord failed to protect the homes of its shared owners, as these homes are controlled by unregistered 'investment pods' rather than owned by Heylo RP itself.
Two of these investment pods have entered financial administration, meaning decisions regarding nearly 3,500 of Heylo RP’s social homes are now with administrators. The RSH found that Heylo RP has not provided evidence it can continue to operate in the short term.
Jonathan Walters, RSH Chief Executive, stated that Heylo RP's business model prevents it from protecting its homes and tenants. He added that the failure to make necessary changes to its governance arrangements is unacceptable.