The Regulator of Social Housing (RSH) has announced a significant milestone with Guildford Borough Council becoming the first local authority to upgrade its consumer grading from C3 to C1 under the new consumer standards introduced in April 2024. This development highlights the council’s progress in meeting the expected standards for social housing tenants.

Guildford Borough Council’s Consumer Upgrade

Guildford Borough Council, based in Surrey, initially received a C3 consumer grade in July 2024 following a self-referral in December 2023. This grading reflected concerns primarily related to the Safety and Quality Standard and the Transparency, Influence and Accountability Standard. Since then, the council has implemented an improvement plan in partnership with the RSH and underwent a planned inspection.

Following this process, Guildford Borough Council demonstrated that it now delivers the required outcomes across the consumer standards. The council has also shown effective use of systems to identify and address potential issues, meeting the criteria for a C1 consumer grade. This upgrade signifies that the council is meeting the minimum standards expected by the regulator, though there remains scope for further improvement.

Other Regulatory Judgements

Alongside Guildford’s upgrade, the RSH published 21 regulatory judgements on 25 March 2026, including a notable downgrade for Connexus Homes Limited. Connexus received a C3 consumer rating due to serious failings in delivering consumer standard outcomes, with significant improvements required.

The regulator identified several issues at Connexus, including gaps in understanding the condition of its homes despite progress with stock condition surveys. There were concerns over the reliability of information provided to the board, limiting assurance on compliance with the Decent Homes Standard. Additionally, tenant feedback and complaints indicated that the repairs service needed to become more efficient and timely. Connexus also requires better insight into the diverse needs of tenants to ensure fair and equitable service delivery.

Connexus’s governance rating was downgraded to G2 due to weaknesses in risk management and the quality of information supporting decision-making. The organisation is working to strengthen these areas, including the implementation of a new data strategy. Its financial viability grade remained at V2.

Arhag Housing Association’s Challenges

Arhag Housing Association Limited was placed under grading review in December 2025 and has now been confirmed as not meeting the Governance and Financial Viability Standard. As a smaller landlord with fewer than 1,000 homes, Arhag was not assigned formal grades. The association faced significant liquidity issues and failed to manage its resources effectively, putting social homes at risk.

Arhag plans to become a subsidiary of Hyde Group on 1 April 2026. It has developed a merger plan intended to improve the delivery of quality homes and services to its tenants.

Summary of Other Judgements

Other landlords receiving consumer gradings for the first time or maintaining existing ratings include:

• Arawak Walton Housing Association Limited – C2 consumer grade
• Connect Housing Association Limited – C1 consumer grade with a regraded viability rating of V2
• East Midlands Housing Group Limited – C2 consumer grade
• Golding Homes Limited – C1 consumer grade
• Housing Solutions – C1 consumer grade
• Hyde Housing Association Limited – C1 consumer grade
• Karibu Community Homes Limited – C2 consumer grade with governance downgrade to G2
• Leeds City Council – C2 consumer grade
• Legal and General Affordable Homes group – C1 consumer grades for all seven for-profit registered providers
• Unity Housing Association Limited – C2 consumer grade with governance downgrade to G2
• Westward Housing Group Limited – C1 consumer grade
• Your Housing Group Limited – C2 consumer grade

Context of the New Consumer Standards

The new consumer standards were introduced by the RSH on 1 April 2024 following the Social Housing Regulation Act 2023. These standards aim to drive long-term improvements in the social housing sector by setting clear expectations for landlords regarding safety, quality, transparency, and tenant engagement. The RSH also commenced a programme of landlord inspections to ensure compliance and accountability.

These regulatory changes provide the RSH with stronger powers to hold landlords to account and promote continuous improvement. The grading system includes consumer, governance, and financial viability assessments, with local authorities receiving consumer gradings only.

What this means for landlords

Guildford Borough Council’s upgrade to a C1 consumer grade demonstrates that local authorities can successfully address identified shortcomings through cooperative engagement with the regulator and targeted improvement plans. Landlords should note that achieving a C1 grade means meeting minimum standards, but ongoing efforts are essential to maintain and enhance service quality.

The downgrades and challenges faced by some housing associations underline the importance of robust governance, reliable data, and effective risk management. Landlords must prioritise these areas to ensure compliance and protect tenants’ interests.

Kate Dodsworth, Chief of Regulatory Engagement at RSH, emphasised the regulator’s role: “Our role is to hold landlords to account and drive continuous improvement, to ensure tenants live in good quality homes and receive effective services. Guildford Borough Council is a strong example of how landlords can work with us to put things right – and working to address failings identified through a responsive C3 judgement to achieving a C1 judgement following an inspection shows significant progress. A C1 grading means landlords are meeting the minimum standards we expect, so there is always room for improvement even in landlords with the highest grade.”

Source: Based on reporting from Regulator of Social Housing

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