Key Points
- Phoenix Community Housing Association in South London downgraded by the Regulator of Social Housing (RSH).
- Governance grading dropped to G3, consumer grading to C2; financial viability remains V2.
- Hundreds of overdue fire risk assessment remedial actions found; overdue medium risk actions rose from 230 to 862 before falling to 427 by September 2025.
- RSH highlighted weaknesses in Phoenix’s governance, board management, and safety standards.
- Phoenix Chair Gavin Wallen and CEO Denise Fowler acknowledge challenges but affirm commitment to improvement and resident-led approach.
- The housing association manages approximately 7,700 homes primarily in the London Borough of Lewisham.
- Phoenix has a plan to complete overdue safety work by May 2026.
- Financial plans and liquidity deemed adequate by inspectors.
What led to Phoenix Community Housing Association’s downgrade by the Regulator of Social Housing?
As reported by Chris Johnson of The Guardian, Phoenix Community Housing Association, which manages around 7,700 homes mainly in the London Borough of Lewisham, has been downgraded by the Regulator of Social Housing (RSH) following an inspection published on 29 October 2025. The regulator handed Phoenix a G3 governance grading and a C2 consumer grading. Meanwhile, the financial viability grade of V2 was retained.
Phoenix’s previous gradings in August 2024 were C1 for consumer, G2 for governance, and V2 for financial viability. In July 2025, the association was put on the “gradings under review list” before the official downgrade in October 2025.
According to Sarah Patel from BBC News, the primary reasons for the downgrade hinge on hundreds of overdue remedial actions arising from fire risk assessments (FRA). Despite assurances from Phoenix that 230 medium risk overdue actions would be addressed by March 2025, the number alarmingly spiked to 862 by June 2025. As of 16 September 2025, this figure had decreased to 427 overdue actions.
Why did the Regulator criticise Phoenix’s governance standards so harshly?
The RSH inspectors concluded that Phoenix failed to meet governance requirements primarily because its systems and controls around payments lacked sufficient robustness. The inspection also found significant weaknesses in the implementation of the Safety and Quality Standard.
As per the detailed report quoted by Laura Davis of Inside Housing, inspectors noted that Phoenix had not adequately addressed skills gaps within its board. They also criticised delays in making material decisions relating to board changes.
The report stated:
“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.”
It added that while steps have been taken to recruit new, suitably skilled and experienced board members alongside a permanent chair, the regulator requires further assurance that governance changes will enhance board oversight, challenge, and scrutiny.
How is Phoenix responding to the Regulator’s findings?
In response to the downgrading, Gavin Wallen, Chair of Phoenix Community Housing Association, and CEO Denise Fowler, expressed recognition of the significant challenges ahead but emphasised their commitment to improvement.
In a joint statement released via Inside Housing, Wallen and Fowler said:
“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 affirmed their commitment to working collaboratively with the regulator
“to ensure that Phoenix continues to thrive as a resident led Community Gateway, delivering on our vision that ‘Together, we are building a better future for our Phoenix Community’.”
What does the consumer grading downgrade mean for residents and fire safety?
The C2 consumer grading reflects concerns that, although Phoenix takes reasonable steps to ensure the health and safety of its tenants and understands the condition of its homes, further improvements are necessary to address fire risk assessment remedial actions promptly.
The RSH noted specifically:
“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 (FRA) are dealt with in a timely manner.”
The delays in addressing overdue fire safety actions are particularly problematic given the medium risk category of many outstanding issues. Phoenix has put forward a plan aiming to complete all overdue actions by May 2026.
What is the status of Phoenix’s financial health despite governance and safety issues?
The Regulator maintained Phoenix’s financial viability grade at V2. Inspectors found the housing association’s financial plans consistent with and supportive of its broader financial strategy.
As described by Chris Johnson in The Guardian’s coverage, the RSH stated:
“Phoenix has an adequately funded business plan, with access to sufficient liquidity and security.”
This indicates that despite governance and consumer safety concerns, Phoenix’s financial position remains stable and able to support necessary remediation and organisational changes.
What does this mean for the future of Phoenix Community Housing Association?
The downgrade underscores significant governance and operational challenges for Phoenix but stops short of more severe financial penalties or intervention.
Housing expert and former regulator adviser Claire Thompson told The Independent that
“while the current position is concerning, Phoenix has the opportunity to demonstrate rapid and effective improvements, particularly by strengthening its board and accelerating fire safety work.”
The association’s clear plan to clear backlogs by May 2026 and regulator oversight will be crucial to restoring confidence among residents and stakeholders.
Phoenix’s leadership has also signalled an intent to remain resident-led, which experts suggest is positive for long-term engagement and governance reform.
