Birmingham social housing provider placed under review

Reliance Social Housing Community Interest Company is Birmingham's largest "exempt" social housing provider

A firm which provides support and accommodation is being looked into by the regulator.

Birmingham's Reliance Social Housing Community Interest Company was placed on the Regulator of Social Housing's under review list on Monday.

The regulator said it is looking at matters related to Reliance's governance and financial management standards.

Reliance said it was disappointed but was working with the regulator.

The city council said it cannot comment on an ongoing inquiry.

Being placed under review does not mean Reliance has done anything wrong instead it "alerts stakeholders to the possibility that the provider may be moving towards non-compliance".

Reliance, it said, is being assessed over matters which may impact its "compliance with the Governance and Financial Viability Standard".

Amer Ijaz, chief executive, said: "We are disappointed at the regulator's decision at this stage but will continue to work with them to ensure they are fully aware of the high standards we hold ourselves to.

"However, it is important to understand that the regulator has informed us that being placed on the grading under review list does not automatically mean that a downgrade to a non compliant grading will follow."

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Another Birmingham accommodation provider, Concept Housing Association CIC, was found non-compliant by the regulator last month after it failed to ensure it had effective governance arrangements, with high numbers of properties failing property inspections and issues found with some of its support provision through third party providers.

Concept said it was "disappointed" to receive the notice but would be working with the regulator to "achieve compliance" over the coming months.

Exempt accommodation allows private landlords to apply as a registered provider, exempting them from local licensing regulations, giving local authorities, such as Birmingham City Council few powers and regulation.

The accommodation is paid for by housing benefits and is not capped. The money is paid direct to the landlord and used to provide support and accommodation to the client.

In Birmingham there are currently 176 registered providers of exempt accommodation.

The city's opposition Conservative group said it has been calling on the local authority and government to look more closely at exempt accommodation.

Conservative group leader Robert Alden said it welcomed the investigation.