Why we are engaging with Milnbank Housing Association Ltd (Milnbank)
We are engaging with Milnbank about its financial management and stock quality.
In October 2024, we received information that Milnbank had failed to notify us of stonework falls in accordance with our Notifiable Events statutory guidance. We engaged with Milnbank and it confirmed that there had been some stonework falls dating back to 2023. Milnbank has now submitted retrospective notifiable events about this.
Milnbank has carried out a programme of interim repairs to manage any immediate risks to tenant and resident safety and is progressing plans to permanently address the issue. This will require significant remedial work and investment.
We will engage with Milnbank to seek assurance about the delivery of its stonework programme and that it is managing any financial risks.
Milnbank is engaging openly and constructively with us.
What Milnbank must do
Milnbank must:
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send us by 30 April 2026:
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its approved business plan and updated risk register;
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30 year financial projections comprising a statement of comprehensive income, a statement of financial position and a statement of cash flows complete with assumptions and explanatory narrative;
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a comparison of projected financial loan covenants against current covenant requirements;
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financial sensitivity analysis which considers the key risks, the mitigation strategies for these risks and a comparison of the resultant covenant calculations with the actual covenant requirements;
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report to the Board in respect of the approved 30 year projections, sensitivity analysis and covenant compliance; and
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evidence of how it demonstrates affordability for its tenants.
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send us quarterly updates on progress with permanently addressing the safety of its stonework.
What we will do
We will:
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review the business plan and financial information and engage as necessary;
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meet with Milnbank’s senior staff to discuss the business plan, financial information and any risks to the organisation;
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review the updates on progress with permanently addressing the safety of its stonework and engage as necessary; and
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update our published engagement plan in the light of any material change to our planned engagement with Milnbank.
Regulatory Returns
Milnbank must provide us with the following annual regulatory returns and alerts us to notifiable events as appropriate:
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Annual Assurance Statement;
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audited financial statements and external auditor’s management letter;
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loan portfolio return;
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five year financial projections; and
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Annual Return on the Charter.
It should also notify us of any material changes to its Annual Assurance Statement, and any tenant and resident safety matter which has been reported to or is being investigated by the Health and Safety Executive or reports from regulatory or statutory authorities or insurance providers, relating to safety concerns.