SHR Board minutes - 31 August 2026

Present

Welcome, apologies and declarations

GC welcomed all to the meeting including those online.  The Board noted that Lindsay Paterson (LP) SHR Board member and Helen Shaw (HS) SHR Director of Regulation had both submitted apologies.   

There were no new declarations.  The Board noted CS would step out for part of Agenda item 7 due to a previously declared conflict of interest in relation to Tenant information Service and Blochairn Housing Association.    

Outline proposed Operating Model

MC presented an outline of the proposed operating model, explaining that the discussions with the Board will enable the Executive to finalise a target operating model for Board consideration in October 2026. MC explained that the emerging proposals build on previous discussions with SHR Board in June and informal lunchtime discussions that have taken place over the summer.   

MC explained that the scope of regulatory and public body duties is determined for SHR and that this review is not seeking a fundamental review of SHR’s functions, but rather a focus on depth and frequency. 

IM highlighted that, for SHR’s business support and statutory public body obligations, the proposals were based on the Board’s recognition of the risks associated with non-compliance.  He explained work that SHR is building on SHR’s existing proportionate approach and focusing on streamlining.  IM explained work to review internal processes, communication, policy review timescales and explore further use of technology.  

MS outlined emerging recommendations around regulation, including streamlining regulatory processes, the annual risk assessment, approaches to engagement and looking at how to handle complex AI-driven complaints about landlords that fall out with SHR’s remit. She also highlighted visits to landlords as an area under consideration. SK set out plans around financial health of RSLs.

The Board considered the emerging proposals and discussed:

• Assurance-based regulation and how Annual Assurance Statements could be further developed;
• the importance of landlords stress testing, taking ownership and having an opportunity to resolve issues;
• regulatory judgement;
• sector capacity, noting both maturity and diversity;
• SHR’s limited remit around complaints about landlords, noting the growth in AI-driven submissions that are often very complex and resource intensive;
• auditor obligations under Section 72 of the 2010 Housing (Scotland) Act;
• criteria for systemic failure; and
• SHR’s Regulatory Framework, noting how this could be flexed.

It also discussed potential differences in the current and target operating model and how these could be presented.  

The Board agreed it was content with the direction of travel for the emerging proposals around business support, public body and approaches to regulation and asked MC to take account of the Board’s discussion as he develops the target operating model for approval in October.

The Board considered stakeholder engagement.  MC explained that SHR is unlikely to be able to sustain the same level of stakeholder engagement.  In particular, MC set out some options on how SHR involves tenants.  The Board discussed these, noting the types of input that come from each strand and how SHR  plans to continue involving tenants as set out in SHR’s current strategy for the remainder of 2026/27.  The Board agreed to the proposed approaches to engaging with the range of stakeholders and asked MC to meet with Tenants Together (Scotland) to discuss options for the future of the Tenants Together (Scotland) / SHR Liaison Group.

MC explained that SHR’s statutory objective, functions and powers work well and are fit for purpose.  The Board discussed  potential asks of the  Scottish Government on legislative amendments to the Housing (Scotland) Act 2010.

MC explained that it has been 14 years since the Scottish Social Housing Charter was introduced, and that here may be merit in changing the statutory provision to move the requirement for landlords from “aim to achieve” to “achieve”.

MC advised that there may also be merit in asking the Scottish Government to consider its policy position on charging for regulation to put SHR’s funding on a more sustainable footing; SHR has no statutory power to charge for the regulation of social landlords. 

The Board considered these proposals and also discussed;

• the Strategic Code for Regulators, noting it is under review;
• Public Service Reform;
• charging/cost recovery options and models, noting that Scottish Government would consider the policy analysis;
• potential impact on tenants and landlords, benefits of regulation, the importance of safe homes;
• the benefits of regulation for tenants. 
• how regulatory powers differ between of local authorities and RSLs;
• promotion of SHR publications by landlords, noting related work by SHR on this requirement; and
• how SHR use legislative and accessible language when using its powers.

The Board approved the proposed requests for Scottish Government to consider potential amendments to the Housing (Scotland) Act 2010.

Finally, the Board also discussed SHR’s staff complement and structure, in particular noting the vacancies in the Regulation Group.  It also noted that workforce planning would follow after the Board agrees a target operating model. 

Actions:

MC to:

• meet with Tenants Together (Scotland) to discuss options for the future of the Liaison Group;
• take account of the Board’s discussions in developing a target operating model for consideration in October 2026; and
• request that the Scottish Government consider potential amendments to the Housing (Scotland) Act 2010 around the Scottish Social Housing Charter and charging.  meet with Tenants

Consent Agenda

The Chair welcomed staff observers GR and EM.

The Board noted and approved the consent agenda including:

• the Chair and Member activity report;
• 31 May 2026 Board minutes and a private note of the June workshop with Management Team;
• ARAC update; and
• the Matters Arising report.

Chief Executive’s report

MC presented on issues and developments that impact regulated bodies, the wider housing environment and SHR.  He highlighted information requested by the Board including details on Fife Council’s work on homelessness and cyber security resilience.  MC also highlighted the appended Highlights report from the Operating Model Review Programme Board.  MC reported that the Scottish Government is continuing to review the Housing to 2040 Strategy Board and there is no further information at this time.  He explained Scottish Government plans to publish the programme for government on 1 September and that will provide detail on the Government’s priorities. 

The Board thanked MC and noted the report. 

Q1 Budget Update

CN presented the Q1 budget report to the Board.  She reported that an overspend of £76K is forecast, which is a reduction of the original forecast.  CN explained that the Scottish Government has confirmed it will provide £50K capital funding in-year, which will help with the scale of the overspend. and SHR expects to receive this in November.  She highlighted a new appended summary tracking savings achieved. The Board considered the update and discussed:

• capital funding, welcoming the new allocation and the impact this has on SHR’s revenue budget; and
• engagement with Scottish Government, noting it had recently welcomed the reduced overspend projection and discussions are ongoing around a letter of comfort with mid-year budget review an important milestone for consideration.

MC confirmed that no changes are expected to SHR’s headcount and that issues with pension administration may be acting as a barrier to anyone who wishes to explore retirement. 

The Board thanked CN and noted the budget update.

Q1 Corporate Performance Report 2025/26

MC presented the first performance report for 2026/27 covering quarter one.   IM highlighted the material in the CEO report on cyber security and some related new metrics in the report.  The Board welcomed the information and noted the training and phishing testing in place. 

The Board also discussed:

• Notifiable Events, asking RH to review presentation of the related chart;
• Digital Transformation Scotland’s work on alarms, noting the work SHR is doing to promote this with landlords;
• the nature of whistleblowing reports to SHR;
• how SHR demonstrates the impact of its work, noting the performance report primarily allows the Board to track progress against the annual operating plan, but that SHR seeks to use the annual report and accounts to cover impact and outcomes; and
• removal of the temporary suspension of the City of Edinburgh’s allocation policy.

The Board thanked MC and noted the performance report.

Action: RH to clarify the chart on Notifiable Events in the Q2 Corporate Performance report.

Serious Casework

MS presented on serious regulatory casework. 

CS redeclared his interest and was absent for discussions concerning Blochairn Housing Association.

MS updated the Board on engagement with Blochairn Housing Association and Scottish Government. The Board noting work SHR is doing to support the Interim Manager. It also noted potential timescales. 

MS also highlighted engagement with Ore Valley and Reidvale Housing Associations.  The Board discussed assurances SHR has around local authorities meeting requirements including scale and improvement plans.  It noted related information that will feature SHR’s forthcoming National Report on the Scottish Social Housing Charter. 

Action: MC to provide the Board with further information on Local Authority performance.  

AOB

Observers: GR and EM thanked the Board for the opportunity to observe and provided feedback on the experience.

Visits: the Board noted the member visits to landlords suggested by SFHA that had taken place and that more are to follow.  It agreed that these were useful and to retain the aim for each member to do a couple every year.   The Board agreed that these are not related to operational regulation and regulatory engagement will continue to be via Regulation Managers.  The Board agreed to review once the current programme of visits has been completed.  

Deputy Chair: GC reported that LP has been formally appointed by Scottish Ministers as SHR’s new Deputy.  He welcomed her to the role and thanked EF for his work as the outgoing Deputy.   

Board member recruitment: GC reported that early planning meetings will take place during September and he will keep the Board updated.

Agenda planner

Agenda Planner: The Board approved the meeting dates for 2026/27 and agreed if there are additional lunchtime sessions required to try to plan for these as far ahead as possible.   The Board noted GC would discuss this further with MC and RH.  

Actions: GC to discuss future lunchtime Board sessions further with MC and RH.