Regulator launches probe into A2 Dominion

The Regulator of Social Housing (RSH) has launched an investigation into a matter which may lead to A2 Dominion breaching a regulatory standard.

RSH has placed the 39,000-home landlord on its ‘gradings under review’ list of providers at risk of being judged non-compliant.

It is investigating whether the £465m-turnover housing association has breached RSH’s governance and financial viability standard.

RSH declined to comment on the nature of the matter being investigated.

A2 Dominion currently holds the top ‘G1’ rating for governance and a compliant ‘V2’ – the second best grade- for financial viability.

Ian Wardle, chief executive of A2 Dominion, said: “We’ve already been working closely with the Regulator and will continue to do so following their decision to review our grading. This includes some matters that we have brought to their attention.

“We know we have some areas to improve upon and this will continue to be our focus.”

In its most recently published accounts, for the 2021/22 financial year, A2 Dominion reported a 54% increase in turnover to £465.8m and a sixth-fold increase in surplus from £6.4m to £42.1m.

The revenue and surplus figures were boosted by increased income from sales. The group generated £100.6m in income from homes developed for sale, compared to £37.5m the previous year, while land sales brought in an extra £55.1m. Income from shared ownership sales increased from £3.1m to £38.4m year-on-year. It completed 971 homes in 2021/22.

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A spokesperson for RSH said: “The regulator is currently investigating a matter which may impact on A2Dominion Housing Group’s compliance with the governance and financial viability standard.

“The outcome of the investigation will be confirmed in a regulatory judgement, once completed.”

RSH also announced Rosewood Housing, a small for-profit provider, has also been placed on the gradings under review list. It has not specified the exact reason why but has again said it is investigating a matter which may affect its compliance with the governance and financial viability standard. Rosewood has been approached for comment.