Why we are engaging with Blochairn Housing Association Ltd (Blochairn)
We are engaging with Blochairn about its governance, financial health, financial management, planned organisational changes, service quality, stock quality and tenant and resident safety.
In October 2022 Blochairn identified a number of areas of non-compliance with regulatory requirements including the Standards of Governance and Financial Management (the Standards). Blochairn completed a strategic options appraisal in February 2023 which identified that it was not financially viable in the medium term. At this time, we changed Blochairn’s regulatory status to ‘non-compliant – working towards compliance’. We assessed that Blochairn did not comply with Standards one, two, three, four, five and six. Blochairn developed an improvement plan to address the serious weaknesses in its governance and non-compliance.
In March 2023 Blochairn decided that it was in the best interests of its tenants and other service users to transfer to another Registered Social Landlord (RSL). Blochairn commissioned a stock condition survey (SCS) in July 2023 to inform the transfer. This identified the need for increased investment in Blochairn’s homes.
In December 2023 Blochairn submitted a notifiable event about a potentially serious tenant and resident safety issue affecting four blocks of properties at Blochairn Place. The rented properties in the blocks comprised just over a quarter of Blochairn’s homes.
In January 2024 Blochairn commissioned a Fire Risk Appraisal of External Walls (FRAEW) on one of the four blocks. Blochairn was unable to progress its transfer plans until it completed the FRAEW and established the fire safety risks and associated financial liabilities.
The FRAEW reported in October 2024 and concluded that the overall risk presented in the block was a ‘high medium/significant risk’. The associated Fire Risk Assessment (FRA) gave the block a ‘substantial’ risk rating. Blochairn told us that it did not have the financial capacity to resolve the fire safety risks.
In November 2024 Blochairn engaged with the Scottish Government about the fire safety risks and concerns about its financial viability. The Scottish Government asked Blochairn to commission Single Building Assessments (SBAs) to fully establish the risk presented in all four blocks at Blochairn Place.
In December 2024 Blochairn asked SHR to direct a transfer of its assets under section 67 of the Housing (Scotland) Act 2010 (the Act) to another RSL on the grounds that Blochairn’s viability was in jeopardy for financial reasons and to protect the interests of tenants and service users.
We considered Blochairn’s request. We assessed that Blochairn was unable to deliver its voluntary transfer strategy because it had not yet established the fire safety risks and resulting liabilities for any RSL transfer partner. We also assessed that whilst Blochairn had taken some steps to address the serious and urgent risks to tenant and resident safety and its financial viability, it had not dealt with this in a sufficiently comprehensive way and at the required pace to minimise the risk to the safety of its tenants and residents. Blochairn was unable to provide sufficient clarity about its financial position or adequate assurance about its capacity to address its financial challenges and meet its obligations to its lender. Blochairn was also unable to demonstrate effective engagement with other stakeholders including the Scottish Government and its lender.
In January 2025 we set out our serious concerns to Blochairn. We noted that we were considering using our statutory powers of intervention to provide Blochairn with additional capacity to address its serious and urgent tenant and resident safety and financial viability issues at the required pace.
In response, Blochairn told us that it would take steps to ensure it had capacity to address its failures at pace. In February 2025 Blochairn appointed a transfer lead officer. Following the departure of Blochairn’s interim senior officer, the transfer lead officer’s remit was extended to include interim senior officer. Blochairn initially appointed two individuals with appropriate skills and experience to the governing body in March 2025 and made further appointments in June and October 2025. Blochairn currently has nine governing body members, an interim senior officer and five temporary members of staff.
In March 2025 Blochairn commissioned SBAs for all four blocks in Blochairn Place and started to implement its fire safety and transfer plans.
Blochairn reviewed its governance arrangements in March 2025, identified further longstanding areas of non-compliance with the Standards and put in place a plan to address these.
Blochairn commissioned an updated SCS in April 2025. The SCS identified the need for further increased investment in Blochairn’s homes, a lower level of Scottish Housing Quality Standard (SHQS) compliance than previously reported and significant outstanding repairs, including health and safety repairs. Blochairn confirmed that it was addressing the repairs as a priority and that historic underinvestment in its stock, alongside the suspension of its maintenance programme in 2023 (excluding health and safety repairs) due to its financial position, had caused its current asset issues. Blochairn appointed additional asset support in June 2025 to help address these issues and deliver a full reactive repairs service.
In May 2025 the SBAs identified potential structural issues in Blochairn Place. As a result, the SBAs were placed on hold until investigations could be completed. Blochairn continued to progress fire safety works and other transfer plans where they were not impacted by the emerging structural issues.
Blochairn commissioned a structural survey in June 2025. The survey reported in July 2025 and found significant longstanding defects in all three flatted blocks and that these defects posed health and safety risks, particularly from balcony fixings.
In July 2025 Blochairn identified that works which had been completed earlier in the year to address the October 2024 Blochairn Place FRA recommendation about fire doors/seals would now need to be redone to a different specification which could accommodate structural movement.
Blochairn told us that its financial position had materially worsened as a result of the longstanding asset and safety issues being identified.
In August 2025 Blochairn therefore decided that it was in the best interests of its tenants and other service users to seek a transfer partner prior to fully establishing the fire and structural safety risks and associated liabilities at Blochairn Place. Blochairn sought expressions of interest from RSLs to develop a transfer partnership proposal and provide urgent asset support to address tenant and resident safety issues. Due to its deteriorating financial position, Blochairn also decided to revert to the provision of an emergency and urgent repairs only service and halt its ongoing SCS.
In September 2025 Blochairn completed the October 2024 FRA recommendations including delivery of a draft SBA covering all four blocks. The SBA gave the blocks a ‘high’ risk rating. Blochairn also identified a further structural safety issue affecting one lift in Blochairn Place. Blochairn completed urgent remedial works to the lift in November 2025.
In October 2025 Blochairn decided to work with Sanctuary Scotland to explore the potential for a transfer proposal and provision of additional support.
In December 2025 Blochairn told us that it had completed all of the SBA recommendations it was able to, due to its limited financial capacity, and that the remaining recommendations would require to be addressed by the transfer.
Blochairn confirmed that as a result of the remedial works completed to date, the Blochairn Place buildings are safe to live in with some appropriate mitigations until the remaining fire safety and structural issues are fully addressed. Blochairn has also implemented a monitoring programme to provide ongoing building safety assurance whilst transfer plans are progressed.
Blochairn will continue to engage with its key stakeholders, including its tenants and other customers, its lender and the Scottish Government as it explores the potential for a transfer partnership with Sanctuary Scotland.
Blochairn is working constructively and openly with us to address its non-compliance, remedy its safety failings (within its financial capacity), clarify its asset issues and deliver a transfer. We assess that Blochairn remains non-compliant with Standards one, two, three and six, and is non-compliant with Scottish Social Housing Charter outcomes two, three, four, five, 13, 14 and 15.
The Housing (Scotland) Act (2010) requires us to monitor and assess the financial well-being, governance and performance of each RSL.
Our current assessment is that Blochairn is non-compliant and is working towards compliance with the Standards. Below we set out the information that Blochairn must provide to assure us that it can complete a transfer that will address its wide ranging and serious compliance issues and ensure its tenants and residents are served by a compliant landlord.
What Blochairn must do
Blochairn must:
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provide us with weekly updates as it explores the development of a transfer partnership proposal with Sanctuary Scotland;
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provide us with weekly updates on progress with its transfer communications plan, including details of engagement with tenants and residents and other key stakeholders, including funders, as it develops its plans;
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provide us with ongoing assurance that Blochairn Place continues to be safe for tenants to live in;
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send us its governing body papers when they are issued to the governing body;
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send us management accounts, which should include a year-end outturn projection, quarterly;
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send us monthly updates of cashflow projections for a rolling 12-month period;
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send us details of the actual cash balance held on a weekly basis with commentary provided where the weekly movement includes unbudgeted cash income or expenditure;
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send us any additional financial information as required;
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meet with us weekly to discuss progress with its plans, tenant and resident safety, its financial position, any other risks to the organisation and its capacity to deliver its plans and manage its risks; and
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notify us of any issues which have or may have a material adverse impact on the delivery of its plans.
What we will do
We will:
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engage with Blochairn as required as it explores the development of a transfer partnership proposal with Sanctuary Scotland;
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review the governing body papers, communication plan updates, tenant and resident safety updates and the financial information Blochairn provides and engage as necessary;
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meet with Blochairn weekly to discuss progress with its plans, tenant and resident safety, its financial position, the risks facing the organisation and its capacity to deliver its plans and manage its risks;
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meet with Blochairn’s governing body to discuss progress by September 2026;
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review our engagement with Blochairn on an ongoing basis; and
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update our published engagement plan in the light of any material change to our planned engagement with Blochairn.
Regulatory returns
Blochairn must provide us with the following annual regulatory returns and alert us to notifiable events as appropriate:
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Annual Assurance Statement;
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audited financial statements and external auditor’s management letter;
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loan portfolio return;
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five year financial projections; and
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Annual Return on the Charter.
It should also notify us of any material changes to its Annual Assurance Statement, and any tenant and resident safety matter which has been reported to or is being investigated by the Health and Safety Executive or reports from regulatory or statutory authorities or insurance providers, relating to safety concerns.