In general, Registered Social Landlords’ (RSLs) robust financial performance and strong liquidity means they remain in a relatively strong position to respond to the financial challenges ahead, although those challenges are significant.
This is the key message of a new report published today by the Scottish Housing Regulator.
The report is the Regulator’s annual analysis of RSL finances to 31 March 2022. The report states that RSL turnover increased by 5.5% to £1.90 billion while operating costs increased by 9.1% to £1.55 billion, well above both inflation and average rent increases during the period.
Shaun Keenan, Assistant Director of Financial Regulation, said:
“Despite the many challenges, RSL financial performance was generally robust with turnover up, operating surplus dropping marginally and healthy interest cover. The financial performance in the year was backed up by strong liquidity with total cash and undrawn facilities totalling £1.81 billion as at 31 March 2022.
“The level of economic volatility and uncertainty facing RSLs and their tenants over the reporting period was unprecedented and since 31 March 2022 the complex and uncertain economic environment that RSLs operate in has worsened.
“It will be vital that RSLs are able to adjust their business plans and continue to manage their resources to ensure their financial well-being, while maintaining rents at a level that tenants can afford to pay.”
Notes to editors
- 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 eight Board members. More information about the Regulator can be found on its website at housingregulator.gov.scot
- SHR sets out how it regulates social landlords in its published framework – Regulation of Social Housing in Scotland.