Why we are engaging with Dunbritton
We are engaging with Dunbritton about its development plans.
COVID-19 has significantly impacted the services provided by social landlords in 2020 and will continue to influence how services are provided in 2021. We will continue to monitor, assess and report upon how each landlord is responding and we will keep our regulatory engagement under review so that we can continue to respond to the challenges of COVID-19.
Dunbritton is one of the larger developers of new affordable housing in Scotland and receives significant public subsidy to help achieve this. Dunbritton plans to develop new homes for social rent.
Dunbritton has told us it needs to obtain new private finance during 2021/22 to support its development plans.
What Dunbritton must do
- send us by 30 April 2021 an update on the borrowing requirement for 2021/22;
- if the borrowing is still required, its latest projected monthly cash flows for the 12 months to 31 March 2022; and
- ensure that the impact of the pandemic on its development plans is reflected in its business plan and tell us if there are any material changes to its development plans which might affect its financial position or reputation, in line with our notifiable events guidance.
What we will do
- review the cash flow projections and liaise with Dunbritton as necessary; and
- update our published engagement plan in light of any material change to our planned engagement with Dunbritton.
- Dunbritton must provide us with the following annual regulatory returns and alert us to notifiable events as appropriate:
- Annual Assurance Statement;
- audited financial statements and external auditor’s management letter;
- loan portfolio return;
- five year financial projections; and
- 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.