The Tower Hamlets Community Housing has been found to have violated a variety of regulations relating to governance, finances, management, repairs, and maintenance.
Following a three-month assessment, Tower Hamlets Community Housing (THCH), a social landlord, has been downgraded by the Regulator of Social Housing (RSH).
THCH manage and maintain 3,000 homes across the Borough. 2000 of their homes are for social rent (50-60% of market rent) and 1,000 are owned by leaseholders.
In its most recent decision, the regulator said there was a lack of assurance that Tower Hamlets Community Housing had a robust business plan or the ability to have financial sustainability.
This is due to the fact the THCH board failed to show that the risks were being appropriately managed or that plans had been put in place to ensure its long-term survival.
Harold Brown, Senior Assistant Director for Investigations and Enforcement, said: “Our investigation found significant issues in the way Tower Hamlets Community Housing is run, including a failure to manage financial risks and reliance on poor-quality data, leaving it with financial weaknesses… It needs to tackle these issues promptly and return to compliance with our standards.”
The organisation has been accused of financial fragility, including its inability to pay for its day-to-day expenses and repair obligations it has to residents.
In a statement, Mark Thrasher, chair of the board for THCH, said: “We take the Regulator’s judgement seriously and are committed to addressing its concerns to improve our resilience. It’s positive that the Regulator is confident we have the capacity, capability, and resources to do just that.
“We remain focused on providing good, safe homes and services to our residents in Tower Hamlets.”
ELL contacted Tower Hamlets Council for comment but received no response.