Assuring Scottish RSLs from a new collaborative perspective

Scotland’s Registered Social Landlords are navigating an increasingly challenging operating environment as regulatory expectations around business planning and financial resilience are heightened. 

The Scottish Housing Regulator’s latest annual risk assessment, published at the end of last year, has identified eight broad risk areas. There is particular emphasis on Regulatory Standard 3, which requires RSLs to demonstrate financial wellbeing whilst keeping rents affordable for tenants. It is therefore clear that financial strength cannot come at the expense of affordability for residents, creating a delicate balancing act for governing board members and senior leaders across Scotland. Constant inflation and cost of living pressures mean significant challenges for families across Scotland. Navigating a route through is not easy for landlords.  

Governance frameworks under heightened scrutiny

The regulatory focus has placed renewed emphasis on governance frameworks within RSLs. This requires organisations to demonstrate competent leadership at the executive level, robust internal supervision and oversight methods, and independent validation of strategic decision-making.

For many RSLs, this means revisiting how they assure their governing bodies that business plans are both achievable and compliant. Boards are increasingly seeking external validation that their strategic planning processes can withstand regulatory scrutiny whilst delivering meaningful outcomes for communities.

One of the challenges is that this goes beyond meeting compliance thresholds and building genuine organisational resilience. With financial margins tightening across the sector, the ability to demonstrate sound strategic planning has become a critical indicator of an RSL’s long-term viability.

How complementary perspectives strengthen assurance

What can be beneficial for RSLs, rather than relying on single-source reviews for their business planning, is integrating different areas of expertise to ensure all areas of the business are complimenting one another in the approach to ensure assurance is achieved. 

This approach typically combines strategic governance reviews with operational delivery assessment and regulatory compliance validation. By examining business plans through these distinct yet interconnected lenses, RSLs can identify potential vulnerabilities that might not be apparent from a single perspective.

This triangulated approach provides boards with greater confidence that strategic plans have been rigorously tested, whilst giving management teams the clarity needed to navigate uncertainty. It also helps organisations demonstrate to the Scottish Housing Regulator that they have comprehensive oversight in place.

ARK assistant director Kirsty Wells notes: “2026 brings Awaab’s Law, a continued focus on Scotland’s housing emergency and Holyrood elections in May. RSL leaders continue to juggle tight finances and tough decisions while meeting new compliance requirements, investing in existing homes, building new homes to meet housing need and keeping rents affordable for existing tenants. It is a maelstrom of multiple challenges and pressures.

“At ARK, we want to support these leaders to see clearly through our new service ‘3 Perspectives’. I am excited to be working with Ian and Martin to offer the sector our combined skills and expertise to assure their business planning approach. This is a unique offer and I’m looking forward to working with leadership teams in RSLs over the next few months.”

New assurance service targets three lines of defence

Our multi-perspective approach combines strategic governance, operational delivery and regulatory compliance expertise. Led by Assistant Director Kirsty Wells, alongside associate consultants Martin Wilkie-McFarlane and Ian Brennan, the ‘3 Perspectives’ service is designed to provide independent validation that business plans meet both regulatory standards and tenant needs.

The service aims to address each line of defence: assuring governing bodies of competent leadership, evidencing robust supervision mechanisms, and providing independent oversight of business planning processes. With the SHR’s focus on financial resilience unlikely to diminish, organisations are actively seeking ways to strengthen their governance frameworks ahead of regulatory engagement.

By examining business plans through these three distinct lenses, this service strengthens organisational oversight whilst providing boards with confidence that their strategic planning has been rigorously tested. This approach reflects the sector’s growing recognition that robust business planning requires strong, expert validation from multiple perspectives to ensure compliance.

Find out more about 3 Perspectives here.