Registered social landlords’ (RSLs) finances are generally stable, but they continue to face ongoing financial pressures. This is the main finding of a report published today by the Scottish Housing Regulator.
The Regulator’s report is a summary of RSLs’ financial plans for the next five years through to 2030.
The report highlights that, at an aggregate level, RSLs are forecasting continued, steady generation of both operating and net surpluses. The aggregated projections show turnover increasing by 3.9% per year – down from last year’s forecast of 4.7%—while operating costs are expected to rise by 3.1%, matching the previous year’s rate.
Shaun Keenan, Assistant Director of Financial Regulation, said:
“RSLs continue to operate in a challenging economic climate. While aggregate finances are stable, headroom remains tight with further pressure ahead.
“Most RSLs are managing these challenges through prudent management and efficiencies, but their ability to absorb extra costs—such as those for fire safety works and decarbonisation—remains limited.
“Strong governance is essential to maintain financial resilience and deliver better tenant outcomes. Governing Bodies also need accurate, comprehensive data to guide decisions and prioritise spending.”
Notes to editors
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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 seven Board members. More information about the Regulator can be found on its website at www.housingregulator.gov.scot
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SHR’s approach to how it regulates social landlords is set out in its current Regulatory framework – Regulation of Social Housing in Scotland.