24 October 2003
England's largest housing association has been placed under supervision after a long-running feud among board members.
The Housing Corporation announced on October 17 that it will be making two statutory appointments to the board of Places for People because of growing concern over the way the association is governed.
The corporation normally intervenes in the running of a registered social landlord if it is worried about governance or finance issues. While it stressed that there are no concerns about the financial or development performance of Places for People, the corporation has become exasperated at the breakdown in relations between board members.
Two members were voted off the board of the RSL, which owns about 52,000 homes, at last month's annual general meeting. Two others then resigned, claiming that chair Sebert Cox and chief executive David Cowans did not consult the board sufficiently before taking decisions.
A Housing Corporation spokeswoman said its chief executive, Norman Perry, had been working behind the scenes for three weeks to try to sort out the row. The decision to intervene showed the corporation was willing to get tough with even the largest RSL.
The names of the appointees will be announced within the next few days. 'This is not a knee-jerk reaction. It sends out a signal to the sector,' said the spokeswoman.
Places for People had already announced that it will be commissioning an independent review of its governance. In a statement, the RSL said its day-to-day work would continue as normal. 'We have been and still are in the process of modernisation and welcome the opportunity to work with the Housing Corporation over the next few months,' it added.
Last year, a total of 23 RSLs were placed under supervision. Arrangements are normally reviewed after a few months to see whether the situation has improved and the statutory appointees can be withdrawn.
The corporation also announced on October 17 that Shaftesbury Housing Association, which owns 11,000 homes, is being placed under supervision following a critical inspection report by the Audit Commission.
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