Why we are engaging with North Glasgow Housing Association Ltd (North Glasgow)
We are engaging with North Glasgow about its tenant and resident safety and because it is a systemically important landlord.
Registered as North Glasgow Housing Association, North Glasgow is trading as ng homes.
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 North Glasgow’s size, we consider it to be systemically important.
In October we engaged with North Glasgow about its handling of lift inspections and found serious failings in its response to lift safety inspections.
North Glasgow has confirmed it has now completed all lift repairs and put an interim process in place to ensure that all lift inspections are appropriately actioned. It has commissioned expert advice and is investigating the reasons for the failures.
We are engaging with North Glasgow to seek assurance about the interim process it has put in place and what the timescales are for completing the independent investigation and the outcomes from that.
North Glasgow is working openly and constructively with us as it takes forward improvements.
What North Glasgow must do
To allow us to complete our review of its regulatory status North Glasgow must:
- provide us with the findings from its investigations into the failures in its handling of lift inspections; and the steps it is taking to address any recommendations from the investigations;
- provide us with information we require on its interim process; and
- provide us with any information we require regarding its compliance with regulatory requirements in relation to tenant and resident safety.
North Glasgow must also
- provide copies of its Board and audit committee minutes as they become available because it is a systemically important landlord.
What we will do
To allow us to complete our review of North Glasgow’s regulatory status we will:
- review the information North Glasgow provides regarding the findings of the investigation and its plans to address any issues arising from this;
- review the information North Glasgow provides regarding its interim process;
- review the information it provides regarding its compliance with regulatory requirements in relation to tenant and resident safety; and
- update North Glasgow’s regulatory status when we have completed our inquiries.
We will also:
- review the minutes of the Board and audit committee meetings and liaise as necessary because North Glasgow is a systemically important landlord.
North Glasgow 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.