Key Points
- Phoenix Community Housing Association downgraded by the Regulator of Social Housing (RSH).
- Governance grading dropped to G3; consumer grading lowered to C2.
- Previously, Phoenix held C1, G2, and V2 gradings in August 2024.
- Overdue fire safety remedial actions increased from 230 planned to be addressed by March 2025, to 862 in June 2025.
- Latest inspections show 427 overdue fire remedial actions as of September 16, 2025.
- RSH found Phoenix’s governance and payment systems insufficiently robust.
- Phoenix plans to resolve all overdue actions by May 2026.
- Financial viability grading (V2) remains unchanged, with a strong liquidity position.
- Phoenix Chair Gavin Wallen and CEO Denise Fowler acknowledge challenges but commit to improvements.
What Triggered the Downgrade of Phoenix Community Housing Association?
As reported by MyLondon, the Regulator of Social Housing (RSH) downgraded Phoenix Community Housing Association following inspections that revealed hundreds of overdue fire safety remedial actions. Phoenix manages approximately 7,700 homes predominantly in the London Borough of Lewisham. The regulatory body assigned the housing association a G3 governance grading and a C2 consumer grading in its latest inspection published on October 29, 2025.
Previously, Phoenix had a consumer grading of C1 and a governance grading of G2 as of August 2024, alongside a financial viability grade of V2. Notably, the V2 financial grading has remained stable amid other downgrades. The housing association was also placed on the “gradings under review list” by the RSH in July 2025.
How Did Fire Safety Issues Contribute to the Consumer Grading Decline?
According to the RSH report, Phoenix had not met sufficient standards in managing fire safety, specifically failing to implement remedial actions from fire risk assessments (FRAs) promptly. The regulator stated:
“While Phoenix takes reasonable steps to ensure the health and safety of its tenants and has demonstrated it understands the condition of its homes, improvements are needed to ensure remedial actions from fire risk assessments are dealt with in a timely manner.”
At the time of the inspection, Phoenix assured RSH it planned to address 230 overdue medium-risk fire safety actions by March 2025. However, contrary to this commitment, overdue actions increased dramatically to 862 by June 2025. By September 16, 2025, the total had been reduced to 427 overdue actions. The association reportedly has a plan to clear all outstanding remedial actions by May 2026.
What Governance Failures Did the Regulator Identify?
The G3 governance grading reflects significant concerns identified by inspectors regarding Phoenix’s leadership and management. The RSH highlighted delays in addressing skills gaps within the board and tardiness in making material decisions that affect board composition. Inspectors noted:
“A combination of vacant board positions, gaps in resourcing and oversight have resulted in Phoenix not providing adequate assurance of the effectiveness of its governance arrangements.”
Despite recent efforts to recruit new, qualified board members and appoint a permanent chair, the regulator emphasised the need for further assurance on governance effectiveness, particularly relating to board oversight, challenge, and scrutiny to ensure proper management of Phoenix’s affairs.
How Does Phoenix Community Housing Association Respond to the Findings?
Gavin Wallen, Chair of Phoenix Community Housing Association, and CEO Denise Fowler acknowledged the seriousness of the regulatory findings but expressed commitment to rectifying the issues. They said in a joint statement reported by MyLondon:
“With a new Chair, strengthened Board, our excellent staff team and our exceptionally high resident satisfaction and engagement, we can address the issues identified in this judgement. Our financial position also remains strong.”
They further committed to working closely with the regulator to maintain Phoenix as a resident-led Community Gateway, according to their vision of “Together, we are building a better future for our Phoenix Community.”
What Is the Status of Phoenix’s Financial Viability?
Despite the concerns over fire safety and governance, Phoenix’s financial viability grading remains at V2, indicating a stable financial outlook. Inspectors reported that Phoenix’s financial plans are consistent and align with its overall financial strategy. They described Phoenix as having “an adequately funded business plan,” with access to sufficient liquidity and security.
