You are viewing 1 of your 1 free articles
Scottish regulator in contact with 32 landlords over their finances
The Scottish Housing Regulator (SHR) has reported a sharp jump in the number of housing associations it is engaging with over the managing of their finances amid the tough economic climate.
The agency has revealed that it is currently in contact with 32 of the country’s registered social landlords over “finance”, compared to 19 last year.
An SHR spokesperson said: “This may be due to concerns about the financial situation of the registered social landlord, failures to meet regulatory standards, how they are handling their finances or anything else that could put tenants’ interests at risk.”
READ MORE
The SHR’s aim is to “safeguard and promote the interests of tenants and service users”, the spokesperson added. “We will engage with a landlord where there is a risk to that,” the spokesperson said.
It comes as the regulator warned that landlords are still experiencing “pressures across much of their cost base such as in maintenance, staff costs, debt costs and energy”.
The agency added: “The financial strength of RSLs is weakening in the face of such tough economic and operating conditions.”
Last month, Shaun Keenan, assistant director of financial regulation at the SHR, said that overall the sector’s financial position is “weaker than it has been for several years”. However, overall the SHR said the sector’s liquidity remains “strong” despite the tough conditions.
In its latest update, the SHR said that while inflation is now reducing, social landlords continue to face “significantly higher costs in maintaining existing homes, building new homes and in other areas of expenditure”.
As the cost of living crisis continues, the SHR said that it is also talking to landlords about how they have checked rents are affordable for tenants.
The warnings came as the SHR launched its new regulatory framework and published an engagement plan for all of Scotland’s social landlords, including councils, outlining what is expected of them.
Seven Scottish housing associations and co-operatives are currently non-compliant with the regulator’s standards.
However, the vast majority (129) are compliant, the SHR said.
No statutory powers are currently being used.
