The Regulator of Social Housing said in a 7 October 2026 press release that it had downgraded the for-profit landlord Heylo Housing Registered Provider Limited to G4* and V4*, the lowest possible governance and viability grades, over issues of serious regulatory concern. The regulator said Heylo RP, which provides shared ownership accommodation it leases from companies in the Heylo group, owns none of the homes; they are held by unregistered "investment pods". Two of those pods have entered financial administration, placing decisions about nearly 3,500 of Heylo RP's social homes with administrators. The regulator said it has no formal role but is working with the administrator to support a resolution that safeguards the homes.

RSH said Heylo RP failed to ensure effective governance, risk management and financial controls, and did not provide evidence it can keep operating in the short term or manage risks from wider group members. It said the landlord failed to make changes despite previous commitments. Heylo RP was previously graded G3*/V3* after breaching governance and viability elements of the standard in December 2022, and was placed on the gradings under review list in March 2026. It has now been removed from that list but remains subject to regulatory intervention. RSH said it does not intend to immediately use further powers given the complex group arrangements, but will act if required. The judgement concerns only the registered provider, not non-registered group entities.