Why we are engaging with Hillcrest Homes (Scotland) Ltd (Hillcrest)
We are engaging with Hillcrest about its development plans, tenant and resident safety and because it is a systemically important landlord.
We refer to a small number of RSLs as systemically important because of their stock size, turnover or level of debt or because of their significance within their area of operation. We need to maintain a comprehensive understanding of how their business models operate, and how they manage the risks they face and the impact these may have. So we seek some additional assurance each year through our engagement plans. Given Hillcrest’s size, turnover and level of debt we consider it to be systemically important.
Hillcrest is one of the largest developers of new affordable housing in Scotland and has plans to grow through a considerable programme of new homes for social rent and mid-market rent. Hillcrest will receive significant public subsidy to help achieve this.
Hillcrest have undertaken a number of different surveys in recent years at one of its buildings to confirm what, if any, remedial works are required to meet health and safety requirements for high-rise buildings. These surveys were subsequently superseded by the requirement to undertake a Single Building Assessment (SBA).
In July 2025 Hillcrest carried out an SBA which identified a number of recommendations for remediation work to the building. Hillcrest has put in place an action plan to address these. Hillcrest has also implemented interim measures to mitigate the risks to tenants whilst it progresses the required remedial works.
Hillcrest notified us when they first identified the issue and has been engaging with us openly and constructively.
What Hillcrest must do
Hillcrest must:
- send us copies of its Board and audit committee minutes as they become available;
- tell us if there are any material adverse changes to its development plans which might affect its financial position or reputation, in line with our notifiable events guidance; and
- send us quarterly updates on progress with its plan to address its tenant and resident safety issues.
What we will do
We will:
- review the minutes of the Board and audit committee meetings and liaise as necessary;
- review progress with the plans to address tenant and resident safety issues and engage as necessary; and
- update our published engagement plan in the light of any material change to our planned engagement with Hillcrest.
Regulatory Returns
Hillcrest 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.