Regulator sets out focus of future risk assessment

The Scottish Housing Regulator published a summary of the risks it will focus on in its annual risk assessment.

Continuing its focus on the delivery of good quality homes and services for all tenants and service users, the Regulator will also ensure that all RSLs and local authorities are well governed and financially healthy.

The vital need for people who are homeless to quickly and easily access the home and services they require will see the Regulator continue its strong focus on how local authorities deliver homelessness services and also how local authorities and RSLs work together to tackle homelessness.

To ensure that the risks considered by the Regulator are relevant and that its approach is proportionate, current and emerging issues for RSLs and local authorities are reviewed each year in its annual risk assessment.

Current and emerging issues include:

  • RSL financial performance remains strong – but we are seeing tightening of sector finances which means, for many RSLs, there will be less financial capacity to deal with adverse events which may occur.
  • Future planned rent increases may create issues in terms of affordability for tenants in receipt of housing benefit as well as tenants in work whose pay may not keep pace with inflation.
  • RSLs need to demonstrate transparency on costs and value for money, taking into account discussions with tenants and other service users about the service levels they consider important.
  • While voids, bad debts and arrears remain under control, landlords will need to take account of the planned roll out of Universal Credit and the impact that this will have on tenants and other service users together with the financial impact on landlords themselves.
  • There are increasing expectations on local authorities to meet their statutory duties to people who are homeless or threatened with homelessness and on RSLs to play their role in preventing homelessness.
  • Building sustainable governance and leadership capacity is crucial in managing all of these challenges.
  • Helen Shaw, assistant director of regulation, said: “Our risk assessment is the main way we work to safeguard and promote the interests of tenants and service users.

    “The information we will consider as part of this year’s risk assessment will help us ensure that landlords are delivering good outcomes for tenants and other service users.

    “Some of the most vulnerable people in Scotland use the housing and homelessness services that social landlords provide.

    “We will continue our strong focus on how local authorities and RSLs meet their homelessness duties and how all social landlords deliver good quality homes and services at a price their tenants and service users can afford.”

    The Regulator is proposing to publish engagement plans for all social landlords in April 2019 as part of its regulatory framework consultation proposals.

    Share icon
    Share this article: