Regulation and value for money
We’re regulated by the Regulator of Social Housing (RSH) and follow the principles set out in their Regulatory Framework and Regulating the Standards documents.
On 29 June 2022 the RSH confirmed that we comply with its Governance and Financial Viability Standard, but re-graded us from G1 to G2 in light of areas where we are improving in relation to our management of data and risk.
At the same time, the Regulator confirmed our existing V1 grade for viability. A rating of G2 is compliant and means that we meet the Regulator’s governance requirements, but we need to improve some aspects of our governance arrangements to support continued compliance. Read our full response to the governance downgrade.
On Tuesday 15 November 2022, the Regulator of Social Housing downgraded the viability ratings of several large housing associations, including Sovereign.
A rating of V2 is compliant and the Regulator’s statement says that Sovereign’s “financial plans are consistent with, and support, its financial strategy” and that Sovereign “has an adequately funded business plan, sufficient security, and is forecast to continue to meet its financial covenants.” Read the full judgement .
The current grades and straplines are:
- G2 The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance.
- V2 The provider meets our viability requirements. It has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance.
Value for money
We're committed to providing a value for money service, delivering our vision and maximizing the social impact of our resources and investment. It’s important because we want to make sure we can invest in more homes, invest in our existing homes and create quality services for residents, customers and other stakeholders.
We're continuing to challenge ourselves to save money where we can, but also taking the long-term view to invest in being more effective and efficient in the future.
Download Our Approach to Value for Money [pdf, 1.89MB] to find out more.