The Scottish Housing Regulator (SHR) has identified six areas of significant risk in its annual assessment of the sector, also noting that six providers are currently non-compliant with its standards.
The significant risk areas have been highlighted as: rent affordability, tenant and resident safety, fire and heat detector compliance, governance, data accuracy and unsuitable accommodation order data.
The SHR’s risk assessment showed that 136 registered social landlords (RSLs) are compliant, with four currently under review. Meanwhile, six do not meet regulatory standards and are working towards compliance.
The regulator said in the midst of rising inflation and a cost of living crisis, it would focus on rent affordability for tenants.
In the assessment, the SHR said: “We will continue to seek appropriate assurances from all social landlords we engage with on how they have assured themselves that any rent changes keep rents at levels that tenants can afford.”
Around fire and heat detector compliance, SHR said it will collect data when landlords submit their Annual Return on the Charter (ARC) by the end of May 2022, with results published as part of the National Report on the Charter in August 2022.
In assessing governance, the regulator said it had looked at additional evidence as part of this assessment, which included reviewing the governing body minutes of all RSLs for three recent meetings.
The SHR said it found that some RSLs faced a number of challenges including:
The regulator also said it is “critical that landlords have good quality data on their performance, their compliance obligations and on the condition of their homes”.
The SHR found that some landlords had not accurately reported their compliance with the Scottish Housing Quality Standard in their Annual Return on the Charter.
The regulator also said it would be “seeking assurance” about how local authorities comply with the Unsuitable Accommodation Order, introduced in 2014 to prevent pregnant women and children being placed in unsuitable accommodation.
It added that it would encourage RSLs “to help address the number of people living in temporary accommodation and the likely need for accommodation for refugees from Ukraine”.
Helen Shaw, director of regulation at the SHR, said: “This year’s risk assessment has again taken place at a time when landlords are continuing to deal with the impact of the pandemic and the wider economic volatility and uncertainty. Many tenants and their families are facing real financial hardship.
“We know that landlords will have some difficult choices to make in response to all of these challenges but at the heart of this will be a need to ensure that rents continue to be affordable for tenants.
“We have also looked at tenant and resident safety and the importance of asset management. Landlords need to have good information on the quality of their homes, so that they are able to prepare and plan how best to manage all of the challenges they face.”
Ms Shaw was announced in the post of director in January, having previously been an assistant regulator with the SHR. She replaced Ian Brennan, who announced in November 2021 he would be departing the organisation after three years in the role.
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