Regulator orders exempt housing landlord Concept to plan for wind-down

The social housing regulator has taken enforcement action against Concept Housing Association, one of the biggest providers of supported exempt accommodation in Birmingham, ordering it to plan for its own wind-down if its finances get worse.

The Regulator of Social Housing said it did not have confidence in Concept's long-term viability or its ability to protect tenants' homes, after "a significant financial deterioration in recent months". Its financial statements are more than a year overdue.

What the regulator found

The regulator found failures in governance, weak business planning, inadequate risk management and improper arrangements with outside organisations. It said it had pushed Concept to deal with the problems "but it has repeatedly failed to do so".

It is requiring Concept to:

• commission an insolvency expert to draw up a plan to wind down the company, including how tenants would be protected if its finances deteriorate further
• have the skills of its board and executives independently reviewed, and act quickly on the gaps
• provide evidence and independent assurance that it is meeting health and safety obligations for all its homes
• produce a credible improvement plan with a clear route to compliance

Jonathan Walters, the regulator's chief executive, said: "Concept has failed to address our concerns and hasn't put things right despite our intensive engagement. We will not accept this. So today we are using our powers to make Concept address its widespread failings."

A councillor at the top

Birmingham Live has revealed that Councillor Morriam Jan, a Liberal Democrat member of the city council, is Concept's interim chief executive. It is not clear when she took up the post, and the role has not been clearly listed in her declarations of interest. The council says it is investigating. She had not responded to requests for comment.

Companies House records show many changes to Concept's board since July, with eight directors appointed and eight leaving.

About Concept

Concept is a community interest company with 6,425 homes in Birmingham, Bradford, Telford and London, all leased from property owners. Its most recent accounts showed a turnover of £39.3m.

It works in the exempt sector, which provides shared housing with support for people such as the homeless, people recovering from addiction, those fleeing domestic abuse, refugees and young care leavers. Landlords receive higher housing benefit payments in return for providing support.

Birmingham is the national hotspot for the sector, with more than 13,000 family homes converted into exempt properties, most housing four to six people who did not know each other before. Campaigners say rogue providers have exploited weak regulation and enforcement.

The regulator also recently downgraded another landlord, GreenSquareAccord, over serious weaknesses in its financial governance and internal controls.

Tenants of Concept who are worried about their housing can contact the council's housing options service for advice.