Why we are engaging with Loreburn
We are engaging with Loreburn about its plans for organisational change.
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.
Loreburn has undertaken a wide-ranging review of its operations which has resulted in significant changes in how the business operates and how Loreburn engages with tenants. Loreburn has a strategic plan to implement and monitor this change programme.
Loreburn is one of the larger developers of new affordable housing in Scotland and receives significant public subsidy to help achieve this. Loreburn plans to develop new homes for social rent.
What Loreburn must do
- provide us with regular updates on the implementation of changes to its business operations; 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
- monitor Loreburn’s progress in implementing changes to its business operations; and
- update our published engagement plan in light of any material change to our planned engagement with Loreburn.
Loreburn 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.