RSH places non-compliant provider’s gradings under review

This follows the news that the BlackRock-backed firm appointed PwC as administrators for Heylo subsidiaries HH1 and HH5.

These two investment vehicles own around a third of Heylo’s 10,500 homes.

Two other subsidiaries, HH1 New Holdings and HH1 Holdings, have also entered administration, although they do not hold any assets.

A Heylo Housing spokesperson said: “We can confirm that on 12 March 2026, HH No.1 New Holdings Limited, HH No.1 Holdings Limited, HH No.1 Limited and HH No.5 Limited investment pods entered into administration, with [PwC] being appointed as administrators.

“Other entities within Heylo Housing Group remain unaffected. The team at Heylo Housing is working closely with the administrators, and our customers remain our top priority to ensure a smooth and orderly transition.

“As this is an ongoing matter, we are unable to comment further at this stage.”

On the RSH’s most recent update, a Heylo Housing spokesperson said: “We understand and acknowledge the regulator’s position. The board of Heylo Housing Registered Provider have worked constructively and extensively with the regulator since their last formal assessment of Heylo’s model as we have sought to address their concerns.

“Our customers remain our top priority, and we can assure them that their home, lease and rights remain unchanged, and we will continue to deliver all services to them. The HHRP board remains committed to addressing the failings set out in the regulator’s judgement and to protecting its homes and customers.”

Meanwhile, three directors have stepped down from the board of Heylo’s for-profit registered provider. Andrew Cowan, a consultant and former partner at law firm Devonshires, has been brought in as a new board director.

Inside Housing Living understands that the administrations came after a restructuring dispute between Heylo’s investors.

Heylo’s registered provider, HHRP, leases homes from property investment companies within the Heylo Group, which are each backed by different investors including BlackRock and other large insurance and pension companies. HHRP then onward-leases the homes to customers on a shared ownership basis.

To regain compliance with the RSH, Heylo had committed to transferring its asset-owning subsidiaries directly under HHRP, with the purpose of giving HHRP direct control.

The investors of HH1 and HH5 did not agree to the restructure, so administrators were appointed for the two investment vehicles on 12 March. These investors have not been named.