Governance and viability downgrades for non-compliant landlord
Heylo Housing Registered Provider Limited has been downgraded to G4*/V4* by RSH
A for-profit social housing landlord has been downgraded to G4* and V4* by the Regulator of Social Housing due to issues of serious regulatory concern.
Heylo Housing Registered Provider Limited has failed to protect the homes of its shared owners. It owns none of the homes, which are instead controlled by unregistered ‘investment pods’.
This has left Heylo RP dependent on its wider group to manage financial problems impacting its homes.
Added to this, it has failed to put things right despite its previous commitment to RSH.
RSH concluded that Heylo RP does not meet the governance or financial viability requirements of its regulatory standards. It now has the lowest possible governance and viability grades.
Two of the pods have gone into financial administration, meaning decisions about nearly 3,500 of Heylo RP’s social homes now rest with administrators.
RSH does not have a formal role but is working with the administrator to support a resolution that safeguards the future of the homes.
RSH found Heylo RP has failed to ensure effective governance, risk management and financial controls, exposing its shared ownership homes to significant risks and leading to serious concerns about its viability and ability to operate independently.
Heylo RP has not provided evidence that it can continue to operate in the short term. It has also failed to demonstrate that it can manage and mitigate critical risks that might be caused by wider group members.
RSH Chief Executive Jonathan Walters said: “Heylo RP’s current business model means it can’t protect its homes and tenants. We have worked intensively with Heylo RP to get it to sort out its governance arrangements, so it can safeguard the shared ownership homes from decisions taken elsewhere in the group. Its failure to make these changes is unacceptable.
“Being a registered provider is a serious undertaking that brings significant but essential obligations. Heylo RP chose not to go through our registration process and we subsequently found serious issues. Its failure to act has placed public funds, investor funds and the reputation of the sector at risk.
“We will continue to engage intensively with Heylo RP and expect swift action to address our concerns, meet the standards and protect tenants’ homes.”
The level of regulatory concern associated with a G4* and V4* grading would ordinarily result in the immediate use of regulatory and/or enforcement powers where a landlord has adequate control over its social housing homes, governance and commercial arrangements.
But as the position for Heylo RP is materially more complex due to group arrangements, the structure through which the social housing homes are held and Heylo RP’s limited ability to exercise control over the events that have led to the identified risks, RSH does not intend to immediately exercise further powers but will take action if required.
Heylo RP previously had non-compliant gradings of G3* and V3* after previously breaching the governance and viability elements of the Governance and Financial Viability Standard in December 2022.
Heylo RP was attempting to take steps to address the concerns identified, however, the risks crystallised and it was placed on the gradings under review list in March 2026.
Following today’s judgement, Heylo RP has been removed from the GUR, but will remain subject to regulatory intervention due to the severity of the issues.
Today’s regulatory judgement is available on RSH’s website.
ENDS
Notes to editors
- Heylo RP is a private limited company and registered for-profit provider. It provides shared ownership accommodation which it leases from companies within the Heylo group. The social housing homes are owned by associated companies within the group, referred to as investment pods. Heylo RP was established through the acquisition and subsequent renaming of an existing for-profit registered provider, so it did not undergo RSH’s registration process as a new provider.
- Heylo RP does not operate as a standalone entity in the group structure and is dependent on the ongoing support of related parties to fulfil its functions and meet its objectives. The regulatory judgement published by RSH concerns the registered provider only and does not represent an assessment of the non-registered entities within the Heylo group.
- The use of an asterisk next to a grade indicates that the assessment refers to a provider that is designated as being for-profit.
- RSH places landlords on its GUR when it is investigating them due to suspected serious failings. This is likely to be where our engagement is ongoing and we think it is appropriate to alert stakeholders to the fact that we have serious concerns about that landlord’s delivery of the standards outcomes, which we are investigating. More information about the gradings under review list and RSH’s approach is available on RSH’s How we approach regulatory judgements and gradings page.
- The regulatory standards page provides information about the economic and consumer standards that registered providers must meet.
- RSH promotes a viable, efficient and well-governed social housing sector able to deliver more and better social homes. It does this by setting standards and carrying out robust regulation focusing on driving improvement in social landlords, including local authorities, and ensuring that housing associations are well-governed, financially viable and offer value for money. It takes appropriate action if the outcomes of the standards are not being delivered.
- For media enquiries email vicky.moore@rsh.gov.uk or christian.cosby@rsh.gov.uk. For general enquiries email enquiries@rsh.gov.uk.