Scottish regulator publishes engagement plans and factsheets after new regulatory framework comes into force

The SHR has also strengthened the emphasis in its regulatory framework on social landlords listening to tenants and service users and made it clearer when a social landlord is non-compliant.

The SHR assesses whether registered social landlords (RSLs) are meeting the outcomes contained within the Scottish Social Housing Charter. This is assessed by providers submitting an ‘annual return on the charter’ (ARC) to the regulator every year, outlining how they have performed in the previous year against the standards that are set out by the SHR. 

The regulator has committed to a “comprehensive review” of the ARC, which it will consult on later this year. It will work with landlords to develop proposals for this review.

In Scotland, an RSL also has to tell the regulator about any ‘notifiable events’ it receives, defined as “any material, significant or exceptional issue, event, or change within its organisation”. The provider must also report on how it intends to deal with it, or where appropriate provide a reasonably detailed explanation as to why a significant change has been implemented.

Under the new regulatory framework, the SHR has also committed to provide further information later this year on the type of notifiable events it receives and what it does with them.

Engagement plans and a summary of the regulatory risk assessment

Now, to mark the launch of the new regulatory framework, the SHR has published an engagement plan for every social landlord and a summary of the outcomes of its annual regulatory risk assessment.

The engagement plans set out the regulator’s requirements of each landlord and how it will engage with the landlord.

Each RSL’s engagement plan includes a regulatory status that states whether the landlord complies with regulatory requirements including the Regulatory Standards of Governance and Financial Management.

The regulator said that most RSLs (129) are compliant, seven are non-compliant and are working towards achieving compliance, and three have their regulatory status under review. The regulator is not using its statutory powers to intervene in any RSL, it added.

In its summary report of the outcomes of its annual regulatory risk assessment, the SHR set out the main risks affecting all social landlords.

It highlighted that “systemic failure” is now impacting the delivery of homelessness services in some areas of Scotland. The report also described “heightened risks” around developing new homes and maintaining existing ones.  

The regulator said it will engage with 25 local authorities about their homelessness service. Two of these are being impacted by “systemic failure” and eight are at “heightened risk of being impacted by systemic failure”.

The SHR plans to speak to all local authorities about their provision of temporary accommodation and how they are delivering good outcomes for people experiencing homelessness. This is the highest level of engagement by the SHR with local authorities about homelessness since it was set up in 2012. 

The report set out the challenges for social landlords in keeping rents at levels that tenants can afford while dealing with rising costs because of the impact of inflation and increased interest rates.

It said that social landlords continue to face “significant demands” to invest in their existing homes, meet the net zero and decarbonisation targets, and continue to deliver much-needed new homes.  

The report said that social landlords continue to operate in a “complex and difficult context”, and many tenants and service users are in financial hardship. The financial strength of RSLs is weakening in the face of “such tough economic and operating conditions”, the SHR said.

Michael Cameron, chief executive of the SHR, said: “Following extensive consultation, our new regulatory framework is now live and the new engagement plans that we have published today, alongside the summary report, set out the key risks that social landlords face and the regulatory engagement we will have with each landlord.

“Many tenants continue to face financial hardship. Social landlords are having to operate in a context of economic uncertainty and volatility.

“As a result, they are having to make difficult choices as they work to tackle the acute problems in homelessness, decarbonise their homes and alleviate fuel poverty while maintaining tenant and resident safety, building new homes and providing good-quality homes and services at a rent tenants can afford to pay.

“With our new regulatory framework, we will continue to work with tenants, other service users, landlords and all of our stakeholders to safeguard and promote the interests of tenants, people who are homeless and others who use the services of social landlords.”

Factsheets on raising concerns about a landlord

The SHR has also published two updated factsheets for tenants and landlords about raising “serious concerns” about a landlord.

This followed the launch of its new regulatory framework, which clarified which issues tenants can bring to the regulator and when and how this fits with other routes for tenants to complain to their landlord and the Scottish Public Services Ombudsman.

In its new regulatory framework, the SHR said it would update its factsheets to reflect the changes it has made and give some examples of the routes for tenants to raise concerns.

The SHR’s factsheet for tenants explains how they can raise a serious concern about a landlord, what they can expect from their landlord, and when and how they can report a concern to the regulator.

The regulator’s factsheet for social landlords sets out what the SHR will do if a tenant or tenant representative reports a serious concern.

Nicola Harcus, assistant director of regulation at the SHR, said: “We’ve made these factsheets available to give tenants and landlords clear, easy-to-use information about reporting a serious concern and what we will do if a tenant or tenant representative reports a serious concern to us.

“We hope that tenants and landlords find the information in them helpful.”