SHR Board Minutes Minutes - 26 August 2025

Present

Welcome, introductions, apologies, declarations

The Board and those in attendance introduced themselves to each other and welcomed the new Chair GC and member DJ to SHR.   There were no apologies.

GC reported that a landlord that is connected to Highlands Housing Alliance is referenced in the serious casework update.  GC explained that he will not participate in any related discussions.  There were no other declarations.

Consent Agenda & ARAC membership

The Board noted and approved the consent agenda including:

• the Chair and Member activity report (subject to minor corrections);
• 27 May draft Board minutes and a private note of a strategy workshop in June 2025;
• draft minutes from the ARAC meeting on 15 July 2025; and
• the matters arising report.

The Board approved a proposal appoint DJ to ARAC in the first instance as a member and noted that in the longer term she will take on the role of ARAC Chair. 

RH confirmed that supplementary papers provided to ARAC in July are available to the Board via Connect. 

Action: GC and RH to issue an ARAC appointment letter to DJ.   

Chief Executive’s report part one

MC presented on issues and developments that impact regulated bodies, the wider housing environment and SHR.  He highlighted preparations for the 2026/27 budget, explaining the context around savings, recharging and the pay offer.  He explained that SHR is working on financial projections, which he will discuss further with the Board and what this may mean for how SHR sets itself in future years on 16 September 2025.   MC confirmed that SHR has in previous years made a comprehensive business case to Scottish Government  and this includes its contribution to public service reform.  GC reported that he and MC will be meeting the Scottish Government in late September and welcomed the opportunity for further Board discussions.  The Board considered the update and discussed:

• existing and future resource pressure and how proactive SHR can be in adapting its operating model and approaches, agreeing Board strategy discussions will be important to set a sustainable future approach;
• timelines, noting that as well as discussions on 16 September, discussions will feature at future Board meetings and workshops. The Board noted Scottish Government will present the budget to Parliament in December 2025 and this could involve multi-year  arrangements;
• potential to utilise technology including AI and to consider the Regulatory Framework further;
• charging for regulation, noting this is not provided for under current legislation and not a decision for SHR, and any increase in landlord costs is likely to be passed onto tenants;
• child poverty and health outcomes, noting that SHR has set out its contribution to the programme for Government and the key pillars identified by the First Minister;
• the constructive relationship SHR has with the Sponsor Team in the Scottish Government; and
• the pressure on landlord finances, agreeing this also needs to be taken into consideration.

The Board noted the update on SHR’s future budget preparations and that the Chair has requested a series of briefings, which MC will programme into the Board’s agenda planner to support further strategic discussions. 

The Board also discussed the Scottish Government’s Housing to 2040 Strategy Board,  noting that both MC and CS attend this, with CS representing Tenants Together Scotland.   It noted how the Board has changed from the original purpose to be focussed on the Scottish Government’s response to the housing emergency.

Actions: MC to incorporate a series of briefings into the Board agenda planner and start discussions with the Board on SHR’s future budget and work plans when it meets on 16 September 2025.

Meeting with Scottish Federation of Housing Associations (SFHA)

GC welcomed guest speakers ST and DM to the meeting. ST and DM congratulated CG and DJ on their appointments and also expressed their thanks to the recently retired Chair and Board members.

DM explained how SFHA represents the sector across all areas in Scotland.   He set out some of challenges that the sector and tenants are facing, highlighting the level of children in temporary accommodation and people on waiting lists. 

DM expressed his hopes for a continued close working relationship with SHR as both organisations work on complementary goals.   ST also emphasised the solid constructive relationship that SFHA has with SHR at every level and the value SFHA attaches to this. ST highlighted the importance of balancing the interests in representing and regulating the sector so that it can be the best it can be. 

ST set out the key policy areas that SFHA is focusing on including:

• developing new homes and maintaining existing homes, explaining the importance of policy and funding clarity, especially the affordable housing supply programme and cladding remediation funding.  She set out hopes for future multi-year Scottish Government budgets.  ST also highlighted the importance of tenant health and safety and the many connected challenges that RSLs are facing in terms of RAAC, cladding, damp and mould; and
• energy efficiency and the transition to net zero, explaining the inevitability of climate change and how social housing homes are already the most energy efficient sector.  She highlighted that innovation and new thinking in the sector is set amongst the challenge of delivery at scale, funding and standard uncertainty, which is further complicated by the forthcoming Scottish elections. ST also explained the impact of a reduced financial headroom in the sector on ability to innovate; and
• poverty and inequality, explaining how 20,000 children are kept out of poverty by living in social homes instead of in the private rented sector and the pressure of whole home costs.  She detailed joint campaigns with the other UK federations around energy costs and the two-child limit.

ST explained that SFHA would be publishing a manifesto to inform the forthcoming Scottish elections.  She reiterated the importance of the relationship between the SFHA, SHR and lenders and investors in the sector.   ST welcomed SHR’s landlord forums, case study reports on notifiable events and thematic reviews on Annual Assurance Statements, reporting that landlords find these very useful.  She also welcomed the strong working relationship and how explained that she hoped this would continue. 

GC thanked DM and ST and welcomed the positive feedback on SFHA’s relationship with SHR.  He outlined plans to reinstate visits for SHR Board members to landlords and asked SFHA to help plan this with RH.   SFHA welcomed the opportunity.

The Board and SFHA discussed:

• how landlord forums had introduced greater openness, transparency and direct discussion between landlords and SHR, which are allowing for issues and solutions to be surfaced more proactively;
• consistency in regulatory approach and application, noting the good relationships with Regulation Managers and how important that is if there are any performance issues to work through;
• SHR’s thematic studies, noting the value placed on the detail shared in these, but also recognising resourcing challenges;
• work landlords are doing around decarbonisation using their own funds, but how this depends on financial headroom, so can be more challenging for some organisations; and
• unknowns around the longer-term effectiveness of technology such as heat pumps and how tenants are at the sharp end of testing, so that requires additional investment in education to help those involved understand the new technology. 

ST reflected on her time as Chief Executive of SFHA, highlighting the growth in SFHA membership and aspirations to work closer with Glasgow West of Scotland Forum of Housing Associations.  She also highlighted the need to look at the whole housing system and consider the impact of any policy interventions  rather than on a sector-by-sector basis. 

GC thanked ST and DM on behalf of the Board and wished ST well for her forthcoming retirement in September.  GC committed to an early meeting with the new Chief Executive. 

Actions: RH to work with SFHA to work to plan for a programme of SHR Board member visits to landlords and seek an early meeting with the new SFHA Chief Executive. 

Chief Executive’s report part two

MC highlighted that the Cabinet Secretary for Housing is expected to make an announcement in early September on Scottish Government’s plans.  He explained that a meeting of the Housing to 2040 Strategy Group would follow.  The Board discussed output from the Group to date.  CS also reported he is meeting with the Cabinet Secretary as part of his work with Tenants Together Scotland in October 2025. 

The Board considered the CEO report and discussed:

• SHR’s independence from Scottish Government and how it can reflect on its regulatory knowledge when meeting with Scottish Government and Cabinet Secretary;
• the Tenant Advisory work programme and opportunities for CS and HTT and also Tenants Together Scotland to be involved;
• the findings of the National Panel research around homelessness, agreeing it should inform the work to be scoped with for the Tenant Advisors around homelessness.

The Board thanked MC and noted the report. 

Annual report and accounts

The Board considered the Annual Report and Accounts for 2024/25.  It thanked all involved in the preparation and related audit, noting the work done by CN.   It approved the Annual Report and Accounts, subject to some minor corrections.  The Board noted that further information on pensions would be provided to SHR by the end of August and once incorporated, the Annual Report and Accounts would be recirculated by email for final Board approval and signing by MC as Accountable Officer thereafter.  

Action: CN to circulate the final version of the Annual Report and Accounts for Board approval and arrange signing by MC as Accountable Officer.

Determination of Accountancy requirements

SK and NG presented proposals to consult on updates the Determination of Accounting Requirements. SK explained:

• this gives SHR the legal power to ask RSLs to provide information in their accounts beyond that set out in the Financial Reporting Standard (FRS) 102 and the Housing Statement of Recommended Practice (SORP); and
• how SHR uses this information to monitor and report on the financial wellbeing of RSLs and carry out detailed analysis for individual landlords and the aggregated sector. 

SK set out the context for the updates and explained that further updates are expected to the FRS and SORP, which SHR will reflect in the Determination once available.

NG explained the consultation and publication timeline and how SHR has consolidated other guidance into the Determination proposals, expanded disclosure categories, and unified how pensions are disclosed. 

The Board considered the proposals and discussed:

• likely feedback from the sector, noting the good relationship SHR has with finance directors and sector auditors;
• interlinked business plans in groups and mid-market rent activities, noting that SHR already considers these;
• growth of for-profit portfolios in England, noting that would require legislative change in Scotland, which would trigger further amendments to the Determination;
• resource implications for landlords, noting it is data that they should already collect;
• importance that other regulators place on SHR’s role to regulate financial wellbeing and how this information collected via the Determination informs that; and
• expected changes to the SORP are likely to be around lease and revenue recognition, which would not impact on SHR’s Determination proposals.   

The Board thanked SK and NG. The Board approved proceeding with the consultation in accordance with the legal advice received and delegated authority to the Chief Executive to finalise the Determination and supporting guidance notes following the conclusion of the consultation period.

Actions: SK and NG to proceed with the consultation.  MC to finalise the Determination and supporting guidance notes following the conclusion of the consultation period.

Q1 Budget Report

CN presented the budget position at the end of June 2025. She reported on a saving of  £17K generated around Business Intelligence system costs and explained this will be a recuring saving of around £12K in future years. The Board considered the update and discussed:

• frequency of budget updates, noting that the Board will receive a mid-year review for consideration when it meets in November. It agreed that SHR’s budget is relatively straightforward and largely predictable with most unknowns associated with staff related costs such as funding contribution around NI and pay settlements;
• Cyber Essentials Plus accreditation, noting that this is in place up to April 2026, but thereafter that will no longer be possible for SHR to achieve because of wider Scottish Government factors and that SHR  it is in discussion with Scottish Government around alternative assurances; and
• office costs and confidence in hybrid meeting facilities at High Street, noting these are generally working well with help is available on site, but extremal factors such connection quality of those joining remotely is outwith SHR’s control.

The Board noted the budget update and thanked CN.

Q1 Corporate Performance Report

MC presented the corporate performance report for quarter one 2025/26. He highlighted how the report has evolved and plans to refresh and streamline it during 2025/26.  The Board considered the report and discussed:

• the value of the report, welcoming the review. It encouraged a focus on progress monitoring and how SHR is reacting to any delays or changes to work plans, including any steers it needs from SHR Board, trends, and strategic impact;
• criteria for whistleblowing and serious concerns casework, noting the work SHR does to engage with those who raise concerns with SHR and that this is recorded to support any criteria related decisions it makes; and
• measures of tenant satisfaction, noting that SHR has specific guidance around this for comparable questions, but landlords can add in additional questions as well;

The Board noted the Corporate Performance Report.

Action: MC to review the format of the corporate performance report, taking account of the steers from the Board.

National Charter Report

SL  presented on the key themes from SHR’s National Report on the Scottish Social Housing Chater.  He set out the context, reported finding in areas that tenants have told SHR matter most to them (voids, lettings, rents, maintenance, investment, homelessness, Gypsy/Travellers and factored owners).   SL also explained the communications plans for publishing and promoting the report, updated landlord reports and comparison tool and the statistical information.  

The Board considered the presentation and discussed:

• shifts in performance, noting for many report measures the change is marginal and is at an aggregate level, noting SHR looks at individual landlord performance and responds to that as part of the risk assessment;
• lets to homelessness people, noting that this is generally up as a percentage of all lettings and some landlords have taken proactive policy decisions that will likely impact future data returns;
• breakdown of tenancy sustainment, noting this is aligned to category of let, rather than client group, but that individual landlords may have more granular detail;
• Gypsy/Traveller satisfaction levels, noting the likely relationship with good communications with residents and site improvements, but that the number of people surveyed can be quite low;
• trends and if more information could be provided about longer term performance, noting availability of further information in the landlord report, comparison tools and statistics that SHR publishes;
• satisfaction around factoring, noting there is no comparison available for the private sector and outcomes can relate to issues, work needing done and charging;
• performance quartiles, noting the detail in the comparison tools and landlord reports as well as the availability of open data for others to analyse;
• feedback from stakeholders, especially tenants on the format they want to see information on Charter performance;
• the differences between local authority and RSL performance, noting the complex context as well as the current resource focus on delivery of homelessness services.  The Board also noted the positive relationship SHR has with ALACHO; and
• suspension of non – emergency repairs, noting this is mainly focussed in small number of local authorities at different time periods and is not brought to SHR’s attention via notifiable events, which only apply to RSLs.

The Board thanked SL for his presentation and noted the communication plan for publication and promotion.  

Action: MC to consider adding further trend data into future National Reports. 

Regulatory engagement – serious casework

HS presented a report for assurance on the most serious regulatory casework. The Board considered the report and discussed:

• the resources need to support organisations working to become complaint and how that may or may not differ from using statutory intervention powers, noting associated costs and implications for tenants;
• ongoing engagement with Blochairn and Reidvale Housing Associations;
• differences between SHR’s powers to remove governing body members and OSCR’s powers to disqualify charitable trustees;
• the various sources of intelligence that SHR uses to identify issues in organisations, noting plans for further discussions around SHR’s regulatory risk tolerance levels; and
• how general participation and engagement with SHR by RSLs for example via Notifiable Events is welcomed and is considered part of normal business activity for landlords.

The Board thanked HS and her team, noted the report and agreed it continued to provide useful insight to the scope and scale of work.  

AOB

The Board noted apologies from LP for the CEO catch up meeting on 16 September 2025.

Agenda planner

The Board noted the agenda planner and approved forward meeting and workshop dates for 2026.  

Effectiveness of meetings and papers

The Board considered the effectiveness of the meeting and papers.  It agreed that it was content and the papers had been comprehensive.  

DONMs

The Board will meet with the MC on 16 September 2025.  The next Board meeting will be on 7 October 2025.

Briefings

Between the 26 August and 4 October 2205:

• SHR publications
• Media updates
• SFHA, CIH and Shelter research on affordable housing need in Scotland
• Share’s meet the regulator event
• Tenants Together Scotland SHR Liaison Group minutes
• Standards Commission update
• SHR Annual Report and Accounts
• Scottish Government homelessness statistics