A Surrey council has become the first local authority to move from a C3 consumer grade to a C1 since the new consumer standards were introduced in April 2024, the Regulator of Social Housing (RSH) has confirmed.

Guildford Borough Council was graded C3 in July 2024 after a self-referral in December 2023. This was a result of the regulator’s responsive engagement with the council that focused on the Safety and Quality Standard and the Transparency, Influence and Accountability Standard.

But after carrying out an improvement plan in agreement with the RSH and following a planned inspection of the council, it has now demonstrated that it is delivering the outcomes across the consumer standards. It is now also making effective use of systems to identify and address potential issues and areas for further improvement at the standard required for a C1.

In other regulatory judgements published today, Connexus Homes Limited (Connexus) was given a C3 consumer rating after the RSH identified “serious failings” in delivering the outcomes of the consumer standards, with significant improvement needed.

The regulator found:

• Good progress has been made in the delivery of a stock condition survey programme; however, there are gaps in Connexus’ understanding of the condition of its homes
• Connexus has identified issues around the reliability of some of its information and this limits the assurance its board has on compliance with the Decent Homes Standard
• Performance information, feedback from tenants and complaints volumes demonstrate that improvement is needed so that Connexus’ repairs service is efficient, effective and timely
• Significant improvements are needed in its understanding of the diverse needs of tenants to ensure Connexus is able to demonstrate that its housing and landlord services deliver fair and equitable outcomes for tenants.

Joint Chief Executive Officer at Guildford Borough Council and Waverley Borough Council Pedro Wrobel said: “We welcome the findings from the regulator, which demonstrates the significant progress we’ve made in improving our housing services over the last two years.

“This is all about our residents, and our determination to ensure that we provide them with the homes and services they deserve. This C1 rating is the result of extraordinarily hard work by our landlord services team, wider staff and partners, and I pay tribute to them for their commitment, professionalism and dedication. I’m incredibly proud of them, and it’s fantastic to see their work recognised in this way demonstrating just how far we’ve come. I’m hugely grateful to the Regulator for their support and challenge ensuring we get things right.

“Over the past two years, the passion and commitment shown by every member of the team has transformed our landlord service into the strong, resident focused service we are delivering today. We know we have more to do, and we remain fully committed to ensuring our residents’ homes are safe, decent and of the standard they deserve.”

Connexus also received a governance downgrade to G2 due to needing improvements in elements of its risk management framework as well as in the quality and reliability of information used to support decision making. Connexus is continuing to strengthen these areas, including through a new data strategy. Its financial viability grade of V2 was unchanged.

Kate Smith, Chief Executive at Connexus, said: “Connexus is on a long improvement journey following the launch of our corporate plan last year, and we recognise that our new customer centric and data led approach is not fully embedded and delivering outcomes for customers yet. The judgement references our awareness of this in a number of areas, and we are committed to working with the Regulator to evidence our new approach.

Anne Turner, Chair of the Board at Connexus, said: “Throughout our engagement with the Regulator, our leadership has been transparent about the challenges we are facing, both from deep‑seated legacy issues with our data and the condition of our housing stock. Importantly, we have a clear plan in place, are delivering against it, and are already seeing encouraging progress.

“The retention of a compliant governance grade reflects confidence that the steps we are taking to modernise the organisation are the right ones, and that the Board continues to provide effective oversight as this work progresses.”

“Connexus remains committed to continuous improvement and providing the best possible service for its customers and stakeholders.”

Arhag Housing Association Limited (Arhag) was placed on the RSH’s grading under review list in December 2025 and today’s judgement confirmed it is not delivering the required outcomes of the Governance and Financial Viability Standard. Though as a small landlord with fewer than 1,000 homes, Arhag has not been given grades.

The organisation failed to manage its resources effectively and faced significant liquidity issues which put social homes at risk.

Arhag intends to become a subsidiary of Hyde Group on 1 April 2026 and has developed a plan with its merger partner that will ultimately help delivery of good quality homes and services to its tenants.

Kate Dodsworth, Chief of Regulatory Engagement at the RSH, said: “Our role is to hold landlords to account and drive continuous improvement, to ensure tenants live in good quality homes and receive effective services.

“Guildford Borough Council is a strong example of how landlords can work with us to put things right – and working to address failings identified through a responsive C3 judgement to achieving a C1 judgement following an inspection shows significant progress

“A C1 grading means landlords are meeting the minimum standards we expect, so there is always room for improvement even in landlords with the highest grade.”

Other judgements published today are:

• Arawak Walton Housing Association Limited – first consumer grade of C2; unchanged governance and viability grades of G1/V2
• Connect Housing Association Limited – first consumer grade of C1; unchanged governance rating of G1 and regraded viability rating of V2
• East Midlands Housing Group Limited – C2/G1/V2 grades unchanged
• Golding Homes Limited – first consumer grade of C1; unchanged governance and viability grades of G1/V2
• Housing Solutions – first consumer grade of C1; unchanged governance and viability grades of G1/V1
• Hyde Housing Association Limited – first consumer rating of C1; unchanged governance and viability grades of G1/V2
• Karibu Community Homes Limited – first consumer grade C2, governance downgrade to G2 and unchanged viability V2
• Leeds City Council – first consumer grade C2.
• Legal and General Affordable Homes – judgements issued to the seven for-profit registered providers that form part of the wider Legal & General Affordable Homes business (see table below)
• Unity Housing Association Limited – first consumer grade C2; governance downgrade to G2 and unchanged viability V1
• Westward Housing Group Limited – first consumer grade of C1; unchanged governance and viability grades of G1/V1
• Your Housing Group Limited – first consumer grade of C2; unchanged governance and viability G1/V2.