Why we are engaging with River Clyde Homes
We are engaging with River Clyde Homes about its service quality, stock quality, 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 a combination of River Clyde Homes’ size, turnover and level of debt we consider it to be systemically important.
In August 2025, River Clyde Homes identified that it did not fully comply with electrical safety requirements, which came into force in early 2022 and form part of the Scottish Housing Quality Standard. It progressed inspections to provide Electrical Installation Condition Reports (EICR) in its tenants’ homes, and we engaged with River Clyde Homes to seek assurance that it would achieve compliance with electrical safety requirements.
River Clyde Homes commissioned a review to obtain its own independent assurance over its compliance with its tenant and resident safety obligations. It shared information on its progress with the EICRs and the outcome from its independent review with us. We reviewed this information and concluded there are areas of non-compliance, particularly in relation to fire safety, electrical safety, lift safety, damp and mould and asbestos management. River Clyde Homes agrees with the conclusions of the independent outcome report. It has since made material progress in providing EICRs in its tenants’ homes.
Our assessment is that River Clyde Homes does not therefore comply with regulatory requirements including the Standards of Governance and Financial Management (the Standards). A social landlord is required to have assurance and evidence that it is meeting all of its legal obligations associated with tenant and resident safety. Standard one further requires that a social landlord complies with its legal obligations. Standard four requires the governing body to ensure it receives information on all of the areas relevant to its consideration and has effective risk management and assurance processes in place.
River Clyde Homes is implementing a tenant and resident safety action plan to ensure it becomes compliant, and will review this action plan to ensure it provides the assurance required to support compliance. River Clyde Homes will independently validate the completion of this action plan and its compliance with its tenant and resident safety obligations. We are also seeking assurance about its approach to performance monitoring, risk management and its assurance processes in relation to tenant and resident safety. River Clyde Homes will develop an improvement action plan setting out how it intends to implement the necessary improvements in these areas.
We will therefore seek assurance from River Clyde Homes about its action plans and its progress in completing these.
To assess the risk to social landlords we have reviewed and compared the 2024/25 service quality performance of all social landlords to identify the weakest performing landlords. We will engage with River Clyde Homes because the average time it takes to re-let homes is one of the highest of all social landlords.
River Clyde Homes has identified reinforced autoclaved aerated concrete (RAAC) affecting 43 of its homes. We are seeking assurance that River Clyde Homes has a plan to manage any associated risks and that it has a long-term strategy in place to manage the RAAC in its homes.
River Clyde Homes is engaging openly and constructively with us.
The Housing (Scotland) Act (2010) requires us to monitor and assess the financial well-being, governance and performance of each Registered Social Landlord (RSL).
Our current assessment is that River Clyde Homes is non-compliant and is working towards compliance with regulatory requirements including the Regulatory Standards of Governance and Financial Management. We set out below the information that River Clyde Homes must provide in order to assure us that it can achieve compliance.
What River Clyde Homes must do
River Clyde Homes must:
- send us its revised tenant and resident safety action plan by 31 May 2026;
- send us its wider improvement action plan by 31 May 2026;
- send us bi-monthly updates on its progress with implementing its action plans and achieving compliance with the regulatory requirements including the Standards;
- tell us when it considers it is compliant with the regulatory requirements including the Standards and provide us with the assurance we require to confirm this;
- improve its re-let time performance and tell us when it has delivered the necessary improvements; and
- keep us updated on how it is managing the risks associated with RAAC and its long-term strategy for managing the RAAC in its homes.
As a systemically important landlord River Clyde Homes must also:
- send us copies of its Board and audit committee minutes as they become available; and
- send us by 30 April 2026:
- its approved business plan and updated risk register;
- the report(s) to the governing body about the plan and approach to risk management and mitigation; and
- evidence of how it demonstrates affordability for its tenants.
What we will do
We will:
- review the revised tenant and resident safety action plan and engage as necessary;
- review the wider improvement action plan and engage as necessary;
- review the bi-monthly updates on progress with its action plans and engage as necessary;
- consider the information River Clyde Homes sends us relating to its compliance with the regulatory requirements including the Standards and engage as necessary;
- review the information that River Clyde Homes provides about its improvements to its re-let time performance and engage as necessary; and
- review the updates River Clyde Homes provides about RAAC in its homes and engage as necessary.
As River Clyde Homes is a systemically important landlord we will also:
- review the minutes of the Board and audit committee meetings and liaise as necessary;
- observe River Clyde Homes’ Board;
- review the business plan and supporting information;
- meet with River Clyde Homes’ senior staff and Chair to discuss its business plan, supporting information and any risks to the organisation; and
- update our published engagement plan in the light of any material change to our planned engagement with River Clyde Homes.
Regulatory Returns
River Clyde Homes 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.