Draft:MHS Homes

MHS Homes

Broadside, the offices for MHS Homes, at Chatham Maritime in Kent, England
Formerly	Medway Housing Society
Type	Charitable housing association Private company limited by guarantee
Industry	Social housing
Founded	July 27, 1990; 36 years ago (1990-07-27)
Founder	Rochester-upon-Medway City Council (stock transfer)
Headquarters	Broadside, Leviathan Way, Chatham, Kent, ME4 4LL, England
Area served	Medway and North Kent (Maidstone, Dartford, Gravesham, Tonbridge & Malling)
Key people	Nigel Hopkins (Chair) Marie-Claire Delbrouque (Chief Executive)
Services	Social and affordable housing Shared ownership Market-rent homes Community investment
Revenue	£65.9 million (2021–22)
Operating income	£24.5 million (2021–22)
Total assets	£210.6 million (revaluation reserve, 2022)
Number of employees	≈ 270 (2022)
Parent	MHS Homes Ltd
Subsidiaries	Heart of Medway Housing Association Ltd mhs community charity Ltd mhs commercial services Ltd Chatham Maritime K1 Construction Ltd K1 Developments Ltd
Website	www.mhshomes.org.uk

MHS Homes (formerly Medway Housing Society) is a charitable housing association providing social and affordable housing in the Medway Towns and surrounding North Kent districts. Its parent company, MHS Homes Ltd, is a private company limited by guarantee (Co. 10704997) and a registered charity (No. 1177565).^[1] The group's origins trace to a large-scale stock transfer in 1990: on 29 July 1990 it acquired the entire council housing stock of Rochester-upon-Medway City Council.^[2] Unusually, this transfer was structured so that MHS Homes was not registered with the national housing regulator; as a result, the association retained greater freedoms (for example, to set its own rent levels) while using a RSH-registered subsidiary (Heart of Medway) to meet regulatory requirements.^[3][4] By 2020 the MHS Homes group managed over 9,000 properties, housed more than 20,000 customers, and employed roughly 270 staff across Medway and neighbouring local authorities (Maidstone, Dartford, Gravesham and Tonbridge & Malling).^[5][6]

In recent years the association has actively developed new housing: taking advantage of post-2007 grant schemes it rebuilt homes lost to right-to-buy, and by 2013 it had "grown the stock back to the original level" after replacing properties sold under RTB.^[7] Today MHS Homes builds about 150 new homes per year (for shared ownership, private rent and affordable/social rent) in Kent and Medway.^[8] Its strategic plans (now supported by its charitable status) emphasize grant-funded development and partnerships with local authorities to address housing needs.^[9][10]

MHS Homes began as Medway Housing Society, formed to acquire and manage local council homes. The formal transfer of housing from the (now-abolished) Rochester-upon-Medway City Council took place on 29 July 1990.^[11] In planning the transfer, the association promised all tenants a lifetime rent guarantee: existing tenants' rents would never rise by more than inflation plus 1% per annum. This pledge remains in force, and as of 2020 about 2,300 tenants still held these "protected" tenancies under the original guarantee.^[12] The 1990 stock transfer was controversial locally. An Early Day Motion in Parliament (EDM 672, 1991) criticized the financing, noting that the Council had loaned Medway Housing Society £20 million on what the motion called a "wanton and reckless" basis.^[13] The EDM cited internal council projections showing that banks who had lent £61.7 million to the transfer would reap substantial repayments, and it asked "what sort of stock might be left and in what numbers at year seven".^[14] This national scrutiny reflected local worries that early forecasts may have understated long-term costs.

The founding Chief Executive was John Sands, who had helped plan the transfer while serving in the City Council. Sands led the association for its first two decades. In 2004 Ash Hook joined MHS Homes (from Greenwich Council) and succeeded Sands as CEO in 2009.^[15] Hook led the organization through a period of expansion and development until his retirement in 2025. In March 2025 MHS announced that Marie-Claire Delbrouque (formerly Managing Director of Bromford Group) would become the new CEO in April 2025, making her the first woman to head the organisation.^[16] Under this leadership succession, MHS Homes grew significantly. By 2020 the group managed over 9,000 homes and served more than 20,000 customers across north Kent.^[17] The association also began rebuilding its stock: after 2007 it accessed new grant funding (available to unregistered associations at the time) and resumed constructing homes, restoring the housing stock lost to Right-to-Buy by 2013.^[18] In 2010 MHS created a registered subsidiary (Heart of Medway Housing Association Ltd) specifically to access grants and regulatory funding, while the parent company remained unregistered and rent-setting.^[19]

MHS Homes Ltd (the parent company) was formally reconstituted in 2017 (superseding the original society) as a company limited by guarantee (Co. 10704997) and as a registered charity (No. 1177565).^[20] MHS Homes Ltd also serves as corporate trustee of the Lord Kitchener Memorial Homes Trust (an almshouse charity founded 1962, Charity No. 209751).^[21] All group companies share a registered address at Broadside, Leviathan Way, Chatham, Kent, ME4 4LL.^[22] Unlike most housing associations, MHS Homes Ltd deliberately chose not to register with the Regulator of Social Housing. As its accounts note, the charity was "formed on 29 July 1990... acquiring... the entire housing stock" of the former City Council, and it was "the only [stock transfer] not registered with the regulator".^[23] In interviews MHS executives explained that registration was avoided to preserve flexibility ("registration tended to stifle what [associations] could do"), since building new homes was not initially planned.^[24] In practice, the MHS group maintains RSH oversight by issuing new housing through its registered subsidiary, Heart of Medway. Heart of Medway Housing Association Ltd (set up 2010 under the Co-operative and Community Benefit Societies Act 2014, registration no. 31076R) is a registered social landlord and charity that currently manages about 1,200 homes for general needs and supported housing.^[25] This dual-structure lets MHS Homes benefit from unregistered freedoms (such as setting its own rents) while meeting standards and accessing funding via Heart of Medway.^[26][27]

The MHS Homes group comprises multiple subsidiary companies with distinct roles:^[28][29]

• Heart of Medway Housing Association Ltd -- established 2010 (Industrial and Provident Society 31076R). A registered provider under RSH and a registered charity. It manages ~1,200 homes for the group.^[30]

• mhs community charity Ltd -- formed 1999 (Co. 3714658, Charity No. 1080067). A non-trading charitable company to support community and charitable activities.^[31]

mhs commercial services Ltd -- formed 1992 (Co. 2751669). A trading company (limited by shares) providing repairs, maintenance and commercial services to the group.^[32]

• Chatham Maritime K1 Construction Ltd and K1 Developments Ltd -- two development companies established 1996 (Co. 03254689 and 03254705). They handle specific regeneration and construction projects (e.g. on the Chatham Maritime site).^[33]

• Lord Kitchener Memorial Homes Trust -- an almshouse charity (est. 1962, Charity No. 209751) owning six sheltered almshouses in Gillingham. MHS Homes Ltd is the corporate trustee of this trust.^[34]

All these subsidiaries operate under the single board of MHS Homes Ltd, which is ultimately responsible for governance. The shared address for the whole group is Broadside, Leviathan Way, Chatham, Kent ME4 4LL.^[35]

In 2025 the Regulator of Social Housing carried out a full inspection of Heart of Medway Housing Association (the RSH-registered subsidiary). The regulator's July 2025 judgement awarded the highest grades in all categories: Governance G1, Viability V1, and Consumer C1.^[36] These grades indicate that Heart of Medway (and by extension the group) meets the regulator's standards for governance, financial viability, and consumer service.

The MHS Homes group is overseen by a Board of Trustees/Directors of MHS Homes Ltd. Nigel Hopkins is the current Chair of the board (appointed to that role in 2022).^[37] He succeeded Richard Cooper, who had been a trustee since May 2016 and served as Chair from July 2018 until 2022.^[38][39] In the executive team, John Sands was the founding Chief Executive. Ash Hook became CEO in 2009 (after joining in 2004) and served for over 15 years until 2025.^[40] In early 2025 it was announced that Marie-Claire Delbrouque (formerly MD of Bromford Group) will take over as CEO from April 2025.^[41] Delbrouque will be the first female leader of MHS Homes.

The group's 2021/22 consolidated accounts show total income of £65.851 million and total expenditure of £49.295 million,^[42] leaving a surplus (net movement in funds) of about £24.5 million.^[43] Income is roughly split between social housing (rents and service charges) and commercial activities (development, regeneration, etc). The surplus largely reflects property revaluations and investment returns. As of 31 March 2022, the group's revaluation reserve (unrealized gains on housing properties) was £210.632 million, slightly down from £212.528 million a year earlier.^[44] Like many housing associations, MHS Homes finances its development through a mix of grants, operating cashflow and debt. In 2022 it secured significant new borrowings. Pension Insurance Corporation announced in October 2022 a £40 million private placement (long-term loan) to MHS Homes, specifically earmarked to fund over 600 new homes and energy efficiency improvements to existing homes.^[45] Separately, MHS Homes restructured its bank facilities: financial advisers reported that MHS arranged about £90 million of private placements and restructured over £140 million of bank loans, while also raising a new £40 million liquidity line.^[46] These transactions helped lock in funding for development. At 31 March 2022 the group's balance sheet also showed inter-company loans within the group: for example, MHS Homes Ltd had loaned £4.535 million to Heart of Medway and £11.966 million to its K1 Developments subsidiary (both loans interest-bearing and repayable by 2040).^[47] (These intra-group loans help allocate cash and debt to where it is needed across the group.)

MHS Homes provides housing mainly in the Medway unitary authority (the Medway Towns), and in adjacent Kent districts (including Maidstone, Dartford, Gravesham and Tonbridge & Malling).^[48] The corporate headquarters is at Broadside, Leviathan Way, Chatham ME4 4LL.^[49] The group routinely reviews its housing stock for investment and disposal decisions. For example, an asset management review in 2015–16 scored each property on long-term maintenance cost and other factors. Properties scoring very low (flagged "red") were investigated; as a result 12 houses were identified for disposal while the remainder were retained for refurbishment or redevelopment.^[50] As a social landlord, MHS Homes is subject to the Housing Ombudsman's jurisdiction for tenant complaints. Recent Ombudsman decisions highlight recurring service issues. For example, in mid-2025 the Ombudsman upheld a complaint by a vulnerable tenant over a long-running leak in her adapted wet-room. The investigation found that repairs had been "ongoing from April 2023" and that the source of the leak (in the toilet) was only identified in June 2024 after weeks of flooding.^[51] The Ombudsman noted that the tenant had been unable to use her shower for over a year and classified the failures as severe maladministration.^[52] In December 2023, the Ombudsman found maladministration in MHS's handling of a chronic mouse infestation in a tenant's home.^[53] That case had lasted "at least 3 years" of ongoing rodent problems; the Ombudsman ruled MHS's response insufficient and ordered a full pest-control survey and proofing of all entry points.^[54] MHS Homes has also faced criticism over its handling of anti-social behaviour (ASB). In January 2024, the Ombudsman investigated a tenant's complaint that MHS had mishandled neighbours' ASB reports. The Ombudsman found that while MHS had a reasonable process for ASB warnings, the landlord had failed to follow its published complaints policy on timeliness: it did not acknowledge or reply to the tenant's complaint within the required timescales. The determination explicitly recorded "maladministration" and noted that MHS "failed to acknowledge" the complaint and respond on time.^[55]

MHS Homes publishes an Allocations and Lettings Policy (in line with its local authority nomination agreements). A notable provision is the use of Local Lettings Plans (LLPs) for estates with special needs. The policy states that MHS "will, as required, develop Local Lettings Plans for existing neighbourhoods" which temporarily override normal allocations to address local problems. These LLPs target specific issues such as anti-social behaviour, high tenancy turnover or high void rates, and may prioritize certain applicant groups for housing in those areas.^[56] In this way MHS can tailor its allocations to sustain struggling communities or estates. == Development and strategic initiatives == From 2007 onward, MHS Homes has pursued an active development programme. Changes in national funding policy at that time (grant support extended to private builders and unregistered associations) allowed MHS to resume building homes while remaining unregistered.^[57] By 2013 the association had rebuilt its stock to replace all homes lost under Right-to-Buy.^[58] In recent years the group continues to deliver roughly 150 new homes per year across Kent (a mix of shared ownership, affordable rent and market rent).^[59] Its charitable status (achieved in 2018) now enables it to apply for public grant funding and to act as a Housing Revenue Account-alternative provider in partnership with local authorities.^[60][61] The association cites a long-term commitment to neighbourhood regeneration. For example, it is redeveloping Rochester's Corporation Street (involving replacement of older homes with new assisted-living apartments) and other sites across Medway. A current flagship development is in Lenham (Maidstone), where MHS acquired a site to deliver over 120 new homes (mix of tenures).^[62] MHS also offers supported housing (foyers and sheltered schemes) and shared ownership to meet a range of housing needs. The strategic plans emphasize grant-eligible activities and close collaboration with councils: as the CEO noted, MHS "works closely with local authorities in the area" to tackle the housing shortage.^[63]