Notifiable Events - Annual Report 2024/25

What this report is about

This is our second annual report on notifiable events (NEs). We published our first report on Notifiable Events  in response to feedback received from landlords as part of our review of our Regulatory Framework in 2024.

In this second report we set out what NEs are, why Registered Social Landlords (RSLs) must let us know about them and what we do when we receive them.  We detail the NEs we received in 2024/25 and include case studies to illustrate how we addressed them and the lessons learned. By sharing insights into the issues that RSLs report to us, we aim to support wider sector learning and contribute to improved practice across the sector.

What notifiable events are and our guidance on them

RSLs must tell us about certain events which may put at risk:

• the interests or safety of tenants, people who are homeless and other service users;
• the financial health of RSLs, public investment in RSLs, or the confidence of private lenders; or
• the good governance and reputation of an individual RSL or all RSLs.

Our guidance on notifiable events provides further information on this.

It is important to stress that an RSL notifying us about various events does not necessarily mean that the RSL has performance issues.  By submitting NEs, RSLs demonstrate effective governance and highlight what is important for us to know. Advising us of NEs means that RSLs are meeting the notification requirements set out in  chapter 3 of the Regulatory Framework and in the Housing (Scotland) Act 2010.  It also gives us the opportunity to analyse trends and highlight potential risks across social housing which, in turn, informs our discussions with stakeholders such as government and public/private funders. This can help to support social landlords and policy makers.  We also consider NEs in our annual risk assessment.  The way in which a governing body handles certain NEs can give us assurance about the wider governance of the RSL.

Analysis of notifiable events received during 2024/25

• 110 RSLs submitted a total of 393 NEs, almost the same levels as 2023/24.
• 78% of those 110 RSLs submitted between one and four NEs, with one submitting 22 NEs (all of which were connected to that RSL’s  large scale disposal strategy). 
• 26 RSLs did not submit any NEs. 

It is important that each RSL has a good understanding of the statutory guidance which we have published on NEs, especially if the RSL is experiencing material, significant or exceptional issues, or events. In this way, RSLs are able to demonstrate they are complying with regulatory requirements, and we are able to engage with them to support their response to the issues or events if necessary. We may engage with an RSL that has not submitted any NEs for some time to get assurance that it understands the requirements around NEs. 

The following table shows the breakdown of NEs by the categories chosen by RSLs when they told us about them. We have included the previous year’s data as a comparison;

The types of issues that were notified to us in 2024/25 include:

• Governance and organisational issues

• • Staff and organisation structure related matters, such as senior staff changes, employment tribunals and settlement agreements which accounted for over half of the issues notified to us under this category.  This followed a similar pattern in 2023/24.
  • Governing bodies related matters, such as the resignation of a governing body member for non-personal reasons.
  • A small number of NEs related to group structures, subsidiaries and connected organisations. 
• Disposal of land and assets
  • Sale or excambion of land or assets over £120,000 continued to be the most frequent NEs reported to us under this category.
  • Lease of residential property to an RSL, group subsidiary or any other body for market or mid-market rent or other non-social housing purposes notifications accounted for the second most frequent NE reported to us under this category.  This followed the same pattern in 2023/24.
• Performance and service delivery issues
  • Over 60% of NEs fell into the “other” area of this category, reflecting the very broad and diverse range of issues that may affect RSLs. Examples included  contractors and delivery partners going into administration, cyber security incidents, adverse reports by news agencies and withdrawal of factoring services.
  • Engagement with statutory agencies / regulators / inspectorates and major failure of key service delivery arrangements also accounted for a number of the NEs reported in this category.
• Health and Safety
  • Health and Safety NEs are not reported under formal subgroups, however a review of submitted NEs in this category shows that falling architectural elements, missing safety checks and fires were the most frequently reported NEs, accounting for close to half of submitted NEs in this category.
  • Staff/Contractor injuries, RAAC, cladding, missed asbestos surveys and other miscellaneous issues made up the remainder of the NEs reported in this category.
• Financial and funding issues
  • 50% of NEs in this category were reported as Lender / Funding / Auditor issue, with a further 27% falling into the 'other category.
• Constitutional and organisational changes
  • 75% of NEs in this category were initially sub-categorised by landlords simply as 'constitutional and organisational changes'. However, a review revealed that 50% related specifically to amendments to  constitutions or rules, whilst the remaining 25% related to staff changes and restructures.
• Systemically important
  • 100% of NES in this category were related to changes to senior staff.

How quickly we dealt with the notifiable events

In 2024/25 we closed 99% of the NEs we received within eight working days and 41% of these were actioned the same or next working day. This compares to 96% in eight working days and 44% the same or next working day during 2023/24.

RSLs receive an automated acknowledgement when they successfully lodge an NE on our landlord portal, which is the secure, password-protected website where social landlords communicate with us.  We then aim to contact the RSL within eight working days to either close the NE (because the NE came with all the information needed to consider it fully) or to request further clarification or additional information.  We close NEs when we are assured that no further action is needed to resolve the matter.  While most cases are closed quickly, others can be open for longer and there are examples of this in the case studies below.  This can happen for a variety of reasons, for example where RSLs are involved in litigation (such as employment tribunals) or discussions with other organisations, and these can be protracted in some cases.

Case studies

The following case studies were selected in order to illustrate the broader range of issues and complexities encountered from the NEs we received, what we asked landlords to do and what we did as a result.  We also show in brackets the number of working days it took from the date we received the NE to the date we closed it. 

It is worth noting that RSLs work in differing circumstances and our response to NEs can depend on a number of factors which are individual to the RSL. For example, in some cases we might already be aware of the background to an NE and will not need to ask for information that we might otherwise request.   

• RSL A told us that after 6 years, their internal and external audit services had been tendered and new firms appointed. We asked the RSL to send us a copy of the governing body minutes discussing the appointment of the external auditors. From reviewing the minutes, we got assurance that the governing body had reviewed the necessary documentation and approved the appointment of the new auditor. As the RSL had provided the necessary information by return, we closed the case.  (2 days)
• RSL B submitted an NE to us advising that its governing body approved a third party lease agreement with the Health and Social Care Partnership (HSCP) for a number of properties which would be used to provide supported accommodation for vulnerable adults. The NE included a copy of the report to the governing body  outlining the proposal to lease properties to the HSCP and the governing body minutes where the governing body emphasised how it supported the proposal and partnership working. We asked the RSL to confirm that it complied with the relevant Regulatory Standard in relation to this NE (Standard 7), as well as provide us with both a copy of the lease agreements and details of the properties, in line with our NE Guidance. After the RSL provided the confirmation and leases, we closed the case. (20 days)
• RSL C submitted a Notifiable Event (NE) after discovering that 40 new build properties had not had gas safety servicing carried out for more than 12 months.  The RSL advised that once the issue was identified, the governing body was informed, and a review was carried out. This review found that the issue arose because in some instances, gas boilers in new build properties were being commissioned well before the formal handover to the RSL, resulting in a shorter than usual timeframe between handover and the first scheduled boiler service. The RSL also confirmed to us that the majority of properties affected had been brought into compliance, with the remaining in progress through a legal process to gain access. In response to the NE, we asked the RSL to provide a copy of the governing body minutes where the incident was discussed. We also asked the RSL to clarify its process for commissioning boilers and for understanding when its boilers required servicing to meet the RSL’s legal obligations to carry out services within a 12 month period.  In response, the RSL explained that boilers are typically commissioned around 12 weeks prior to handover to allow the heating to work while final work is being completed.  Their system uses the commissioning date to trigger the first service requirement. Normally, this allows for 9–10 months before the first service is due. However, delays in handover can shorten this period, as was the case in this instance.  To address this, the RSL advised us that it has strengthened its process. At handover, gas commissioning dates are now reviewed, and if there is less than 6 months remaining on the certificate due to delays occurring, the RSL requires its contractors to re-certify the boilers before handover. This ensures that no new property will have less than 6 months before the next service is due.  We also asked whether there were any implications for other cyclical compliance inspections, such as EICRs and LD2s. The RSL confirmed it had checked and was confident there were no other issues. EICRs had been completed prior to handover and were not yet due for renewal. LD2 fire and CO alarms had been installed in line with requirements and were inspected during the gas safety checks.  Finally, once the RSL had sent the governing body minutes, we reviewed and closed the NE. (47 Days)
• RSL D advised the SHR that a boiler manufacturer had issued a product recall for certain models due to a component that required replacement. The RSL identified 183 properties with affected boilers within its stock. The RSL advised that it registered all affected boilers with the manufacturer and passed the list to its gas contractor, who began contacting tenants and booking appointments for component replacement for boilers in affected properties. The RSL advised that it had also posted information on its website and had begun writing directly to affected tenants, advising that whilst the boilers are safe to use, access must be granted for the component replacement. Tenants were informed that forced access may be required if entry was not granted. The RSL advised that an internal committee that deals with risk at the RSL would be presented with a report regarding this matter ahead of its next meeting, where the matter was to  be discussed. In response to the NE, we asked the RSL to confirm whether the immediate health and safety risk would be mitigated by the supply of these parts, to provide timelines for part supply and installation, to confirm whether the governing body had been informed and to share the report being submitted to its committee which dealt with risk. The RSL confirmed that there was no immediate health and safety risk, provided a copy of the report that had been submitted and confirmed that the governing body had been notified. We asked to be kept informed of progress and the RSL provided updates on its progress before finally confirming that the boiler parts replacement programme had been concluded successfully; we were then  able to close the NE. (67 Days)
• RSL E advised us that four small fraudulent transactions were processed on an employee’s prepaid credit card (used by key employees to allow them to purchase goods and services online and in store – such as materials that cannot be sourced locally or to top up electric meters). The total value of the transactions was less than £180.  The RSL contacted the card issuer and completed a fraud form.  The RSL told us it is hopeful it will receive a full refund.  The RSL reviewed the incident in line with its Anti-Fraud Policy. This concluded that, aside from some small housekeeping changes, there is nothing more that the RSL could have done to prevent the fraud from occurring. The RSL is working with the card issuer to establish how card details could have been breached, and the convenor of a relevant sub-committee was advised alongside the RSL’s external auditor. We asked the RSL to confirm that the employee was not involved in the fraud and that they provide us with  the governing body reporton all of this On receipt of the report and confirmation regards the employee, we closed the case. (16 days)
• RSL F advised us of a staff restructure, including changes at a senior level. The RSL raised an NE to let us know that it was changing aspects of its operational structure to improve frontline housing services and reduce management costs. We received with the NE the proposal for the revised operational structure. We acknowledged the NE and asked the RSL for the minutes from the governing body meeting where the restructure was approved. We also asked to be kept informed of the progress, including any proposed redundancies, details of the affected posts and the costs involved. RSL F did keep us informed, provided the governing body minutes where the changes to its operational structure were considered and approved and provided us with the figures relating to the redundant posts and their associated costs. Upon receipt of these documents and after a review, we were able to close the case. (195 Days)

What we have learned from the notifiable events submitted in 2024/25

We received slightly fewer NEs during 2024/25 than we did in 2023/24. Like 2023/24, most of the NEs we received during 2024/25 were in the governance and organisational issues category. 2024/25 saw an increase in NEs received relating to both disposal of land and assets and health and safety, whilst there were fewer NEs for constitutional and organisational changes and financial and funding issues. 

In our review of the 2023/24 NEs, we highlighted that good information provided by an RSL at the point it submits an NE is key to the quick and efficient management of the NE for both the RSL and for us. Most RSLs continued to provide good supporting documentation along with the NEs when they first submitted them or did so promptly after we asked for further information. This helped us to close 99% of NEs within eight working days.

In our 2023/24 review of NEs, we noted that there were occasions where RSLs had not submitted NEs under the correct category and/or subcategory.  For instance, a change of auditor might have been submitted by the RSL under governance and organisational issues and other rather than under financial and funding issues and lending/funder auditor issue.  We updated our process and now we will consider if the RSL has submitted the NE under the correct category and subcategory, and if not, we will amend this. This helps us to improve our understanding and reporting on NEs across the sector.

As a wider lesson for us, the range of NEs we received during 2024/25 provides us with valuable insight into the complex operating context for RSLs and strengthens our confidence in the effectiveness of their governance.