Why we are engaging with Pentland
We are engaging with Pentland about its plans for a transfer of engagements to Cairn Housing Association Ltd (Cairn).
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.
Pentland informed us during 2018/19 that its Senior Officer had left and it took independent advice on a strategic options review. Following an open tender exercise where potential partner housing associations were invited to submit proposals, Pentland has concluded that it is in the best interests of its tenants and other customers to transfer to Cairn.
Pentland’s tenants and other customers will be consulted on the development of the detail of the proposed transfer. The proposal will then be the subject of an independent ballot of Pentland’s tenants.
What Pentland must do
- keep us informed as it develops its proposals for a transfer of engagements to Cairn and the outcomes of its consultation with tenants;
- send us the final business case in support of its proposals for a transfer of engagements to Cairn; and
- ensure that it meets statutory and regulatory requirements in relation to the proposed transfer of engagements particularly in relation to tenant consultation.
What we will do
- liaise with Pentland as it develops its proposals for the transfer of engagements and seek assurance that tenants interests are protected; and
- update our published engagement plan in light of any material change to our planned engagement with Pentland.
Pentland 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.