The Regulator began to engage with the Association in 2016 following serious allegations about governance and financial management issues.

During this engagement, the Regulator identified a number of serious failures in governance.

The Regulator used its statutory powers to appoint a manager and three members to the Association’s governing body in February 2017.

The Regulator ended its intervention in November 2019 after the Association’s assets and liabilities were transferred to Hanover Housing Association. This came after 98% of the tenants who voted in a ballot supported the transfer.

As part of the transfer agreement, Hanover offered Arklet’s tenants a rent cut and lower future rent increases, improvements in Arklet’s homes, and access to a better range of services such as 24-hour repairs reporting and greater opportunities for tenant engagement.

The Regulator said Hanover is making good progress in delivering on its promises to tenants, including implementing a rent cut and rolling out new services to tenants.

Ian Brennan, director of regulation at the Regulator, said: “We are grateful to the statutory appointees for their support and commitment to help Arklet address the issues that led to intervention. Arklet’s tenants are now benefitting from lower rents and access to a broader range of services. Hanover is now developing plans for much needed investment in tenants’ homes.”

Speaking about the transfer, Angela Currie, chief executive of Hanover, said: “We were delighted to be selected by Arklet as the preferred partner for transfer in 2018. We felt that there was a strong value alignment and a shared focus on improving the quality of life for older people.

“Since the official transfer in November 2019, significant benefits have been delivered to tenants, including a £12 reduction to monthly rents in 2020, Wi-Fi installations in communal lounges, and a range of engagement opportunities for residents to help shape the organisation. Additionally, cost savings of £430,000 have been achieved since the transfer through efficiencies and harmonisation, which is a remarkable achievement.”