Housing regulator publishes the outcome of its statutory intervention at Arklet Housing Association


07 October 2021

The Scottish Housing Regulator today published its report on the outcome of its statutory intervention at Arklet Housing Association.

The report sets out why the Regulator intervened and the action it took to safeguard the interests of tenants and service users.

The Regulator began to engage with the Association in 2016 following serious allegations about governance and financial management issues.

During this engagement the Regulator identified a number of serious failures in governance.

The Regulator used its statutory powers to appoint a manager and three members to the Association’s governing body in February 2017.

The Regulator ended its intervention in November 2019 after the Association’s assets and liabilities were transferred to Hanover Housing Association. This came after 98% of the tenants who voted in a ballot supported the transfer.

As part of the transfer agreement Hanover offered Arklet’s tenants a rent cut and lower future rent increases, improvements in Arklet’s homes, and access to a better range of services such as 24 hour repairs reporting and greater opportunities for tenant engagement.

Hanover is making good progress in delivering on its promises to tenants, including implementing a rent cut and rolling out new services to tenants.

Ian Brennan, Director of Regulation at the Regulator said:
“We are grateful to the statutory appointees for their support and commitment to help Arklet address the issues that led to intervention. Arklet’s tenants are now benefitting from lower rents and access to a broader range of services. Hanover is now developing plans for much needed investment in tenants’ homes.”

Speaking about the transfer Angela Currie Chief Executive of Hanover said “We were delighted to be selected by Arklet as the preferred partner for transfer in 2018. We felt that there was a strong value alignment and a shared focus on improving the quality of life for older people. Since the official transfer in November 2019, significant benefits have been delivered to tenants, including a £12 reduction to monthly rents in 2020, Wi-Fi installations in communal lounges, and a range of engagement opportunities for residents to help shape the organisation. Additionally, cost savings of £430,000 have been achieved since the transfer through efficiencies and harmonisation, which is a remarkable achievement. ”

Read the Regulator's report on its statutory intervention at Arklet.

Notes to editors

  1. The Scottish Housing Regulator was established on 1 April 2011 under the Housing (Scotland) Act 2010. Its objective is to safeguard and promote the interests of tenants and others who use local authority and RSL housing services. The Regulator operates independently of Scottish Ministers and is accountable directly to the Scottish Parliament. It assumed its full regulatory responsibilities on 1 April 2012. The Regulator consists of the Chair and six Board members. More information about the Regulator can be found on its website at housingregulator.gov.scot
  2. SHR sets out how it regulates social landlords in its published framework – Regulation of Social Housing in Scotland.