SHR Board Minutes Minutes - 5 November 2025

Present

SHR Board workshop

The Board held a private workshop with SHR’s Management Team.  This included discussions with the Cabinet Secretary for Housing and separately a session on legislation with SHR’s legal advisors.

Apologies and Declarations

Apologies were submitted by SHR Board member Dr Abhishek Agarwal (AA) and SHR Assistant Director Margaret Sharkey.  

There were no declarations of interest.

Regulatory Risk Assessment methodology

HS and JJ presented proposals for the forthcoming regulatory risk assessment.  HS explained the context, including uncertainty around future budgets. 

They explained that some changes in approach are proposed in recognition of the lower level of resources SHR is likely to have for 2026/27. They highlighted that the changes are likely to mean that SHR may need to tolerate higher levels of risk.  HS and JJ reported that the risk assessment remains robust, proportionate and focused on the risks that matter most and are consistent with SHR’s statutory objective, and Regulatory Framework.   

JJ explained the risk assessment process and outcome.  He highlighted how proposals differ from the previous risk assessment.  The Board considered the methodology and discussed:

• changes in business plan reviews, noting this is reverting back to SHR’s previous two yearly approach.  The Board also noted that SHR will continue to focus on developing landlords, as well as observe board meetings and meet with the Chair and Senior Officer of each Systemically Important landlord annually;
• the focus on rent arrears and the links with business viability and future investment potential;
• emergency repairs, noting this is a priority area for tenants and there is potential scope to improve performance.  The Board also noted the relationship with repairs, relets, voids and income flows;
• the joined up cross referencing approach to the risk assessment, how reviewing minutes provides insights that complements the data SHR gathers.  The Board noted that SHR must make choices about the focus of the risk assessment that fits with resources;
• tenant satisfaction and feedback and how SHR expects landlords to take this into account and reflect it in annual assurance statements.  The Board noted that this is something SHR considers during the assurance statement visits to landlords;
• the full range of indicators that continue to be collected around the Charter and reported upon, noting how these are used by tenants and others to benchmark;
• new indicators for damp and mould, noting the data will not be received from landlords until 2026 and meantime SHR has requested coverage in the annual assurance statements;
• Awaab’s law, noting the potential timescale for introduction and work that will be needed to explore related indicators;
• information that flows in during the year to SHR that allows it to consider engagement with landlords and how it remains agile to responding to sector wide issues that emerge such as RAAC;
• data validation work carried out by SHR and how it tests outliers.  It noted that outliers are not restricted to exact cut off points and SHR will assess all the data;
• the implications of temporary accommodation for people with protected characteristics;
• local authority representation, noting ALACHO is the key group that SHR works with;
• net zero, noting that there are currently no obligations in place for landlords to act or SHR to engage with them on.  The Board noted reports from tenants that some landlords are proceeding with related works, without guidance being in place.  The Board noted that once Scottish Government has provided clarity, SHR will develop indicators for consultation.

MC explained that SHR does not have the resources to be fully proactive and consider everything in the risk assessment.  He highlighted the need to focus on key areas and to signpost tenants and others to other available information and also the serious concerns process.  The Board noted the position and welcomed the focus on the things that are important to tenants.  

The Board thanked JJ and HS.  It asked them to take account of the discussion and approved the risk assessment methodology for 2025/26.  The Board noted SHR will publish information on the risks that it will focus on around the end of November 2025. It also noted target timescales for the outcome of the risk assessment. 

Action: HS/JJ to implement the risk assessment methodology.    

Mid year budget review

IM presented an updated on SHR’s budget position at 30 September 2025 and a proposed restated revenue budget.  He highlighted:

• that SHR is balancing the current budget and anticipating future budgets by holding vacancies;
• the unions have accepted the pay offer, which has been factored into the budget update; and
• potential for some underspend. 

The Board considered the budget update and discussed:

• staff costs, noting some temporary recruitment ongoing for posts on a fixed term to the end of March 2026 and how vacancies are being used to balance the budget;
• plans to utilise underspend and therefore contingency on temporary staff costs;
• the pay offer, noting this will be backdated;
• potential for internal temporary promotion and the type of work staff would carry out, noting any internal promotion would leave gaps that will not be backfilled;
• temporary recruitment approach, noting this will give SHR flexibility around future budget settlement;
• spend proposals in relation to support from Scottish Government Procurement Services to assist with Oracle implementation costing £12K, noting this aims to provide the permanent team with space to consider long term requirements and catch up on work including considering what the longer term position should be;
• Oracle issues, noting that for SHR those are mostly finance related, because it has not had much turnover to test the recruitments elements of the HR side of the system; and
• capacity for development resources for SHR Board members including membership subscriptions, noting plans for further considerations once the budget is clarified.

The Board thanked IM and the team involved in preparing the review.  It noted the expenditure in the year to date and the current forecast year-end outturn.  The Board approved the re-stated revenue budget for 2025/26.  It also agreed to return £50K capital funds to Scottish Government, noting SHR has no spend plans for this in the remainder of 2025/26. 

Actions: IM to implement the restated budget and arrange for return of £50K capital funding to Scottish Government and consider capacity for spend on Board development when there is further clarity on the budget. 

Mid year operating plan review

MC presented the a mid-year update on SHR’s operating plan.   The Board considered the operating plan and discussed:

• the pay settlement, which gives newer staff quicker access to maximum holiday allowances, noting this impacts very few of SHR’s staff team and is not considered a risk to achieving the operating plan; and
• impact of the changes to the 35 hour working week, noting the increase in flexi balances, that reflects the effort SHR staff continue to input.   The Board also noted that Management Team is mindful of the situation in terms of staff wellbeing and this is a focus of 1:1 discussions.

The Board noted the operating plan updates and approved the mid-year adjustments.

AOB

MC updated the Board on preparation for the correspondence with the Scottish Parliament’s Local Government, Housing and Planning Committee.  The Board agreed to consider correspondence with the Committee by email to allow SHR to respond within the requested timescales.   It also noted likely timescales for the forthcoming evidence session with Committee.  

Effectiveness of meetings and papers

The Board considered the effectiveness of the meeting and papers.  It agreed that it was content and noted that GC and EF will be discussing a future effectiveness review. 

DONMs

The Board will meet on 2 December 2025.

Private meeting

The Board and Management team met in private. 

Briefings

Between  October – December 2025:

• SHR publications
• Media updates
• Legal advice on SHR’s regulatory intervention with local authorities
• Ethical Standards Commissioner thematic on time commitment, remuneration and other aspects of the role of public appointees in Scotland
• Local Government, Housing and Planning Committee correspondence