Eyeing a change
Introducing a regulator in Scotland is a positive move but landlords must be aware of some risks, says James McMorrow
A revised Housing (Scotland) Bill was enacted in January. It introduced a new regulator to improve the value that social housing delivers for tenants and to safeguard the supply of housing for future generations of tenants.
The Scottish Housing Regulator has the power to:
- specify the legislative and regulatory criteria for the registration of social housing providers;
- undertake inquiries;
- require improvements in the performance of social housing providers;
- safeguard social housing providers’ assets where the social landlord becomes, or is at risk of becoming, insolvent;
- impose controls over a social housing provider’s ability to dispose of its land and other assets; and
- assess social housing providers’ performance against the new Scottish Social Housing Charter.
Although the bill is a positive development, the shift from an inspection regime to an output-focused one, centred on a social housing provider’s performance, carries risks. Those with less robust governance frameworks may not be able to deliver to the required key performance indicators. These risks may be managed by ensuring that landlords comply with their regulatory expectations and can meet their own strategic objectives. The move also creates a need for more robust internal governance arrangements.
It will also be important for social housing providers to ensure that they engage in the charter consultation process to ensure that their views, and those of tenants, are factored into Scottish ministers’ decisions.
James McMorrow is a partner at Harper Macleod
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