SHR Board Minutes Minutes - 7 October 2025

Present

Welcome, introductions, apologies

GC welcomed all to the meeting, especially guest speaker JM from UK Finance and SHR staff observer KP. 

The Boad noted apologies from EF and that HTT and AA would join the meeting slightly later.  It also welcomed that MD was able to join online.  There were no other apologies. 

Meeting with UK Finance

The Board and those present introduced themselves to JM.

JM presented on the work of UK Finance.  He highlighted:

• UK Finance’s priorities for 2025 and the work it does for members;
• the Mortgage Product and Service Board, representation and priorities as well as the related governance model and the work of the policy team;
• insights to the mortgage market and household finances; and
• RSL sector engagement, including some headlines about the Scottish RSL sector.

JM also emphasised that funder appetite in Scotland remains strong and that UK Finance members value the work that SHR does, explaining how this underpins confidence. 

The Board considered JM’s presentation and discussed with him:

• the potential for lending into the mid-market rent sector, related challenges and the emerging role of build to rent;
• the value of SHR’s approach to regulation for both lenders and communities;
• thematic work carried out by SHR, acknowledging SHR’s resource challenges, and noted that a update to SHR’s development thematic would be valued by UK Finance;
• challenges for development around planning, government policies and building regulations; 
• work UK Finance has done around flood awareness;
• how charging for regulation in England works, noting that the legislative background differs from Scotland and when introduced involved a great deal of engagement groundwork to set out the benefits;
• ratio of private and grant funding in social housing with reference to the Social Housing Taskforce, noting the importance of a stable government policy environment; and
• the impact of the changes to appeals against regulatory decisions set out in the Housing Bill, noting that UK Finance awaits how this will work in practice and to date SHR has only received one appeal application. 

JM thanked SHR Board for the opportunity to meet with it.  He re-emphasised the confidence UK Finance has in SHR and the Scottish social housing sector. 

The Board thanked JM for this time and noted his presentation. 

Declarations

GC repeated a previous declaration explaining that a landlord which is connected to Highlands Housing Alliance is referenced in the serious casework update.  The Board noted that GC would not participate in any related discussions. 

There were no other declarations.

Consent Agenda

The Board noted and approved the consent agenda including:

• the Chair and Member activity report;
• 26 August 2025 draft Board minutes;
• draft minutes from the ARAC meeting on 9 Sep 2025; 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 set out proposals to amend arrangements for considering and approving minutes of the Tenants Together (Scotland) Scottish Housing Regulator Liaison Group.   The Board considered these and agreed to amend the proposals, which are set out in the terms of reference for the group, subject to further clarification around the role of the Chair of the group in reviewing draft minutes.

MC also highlighted publication of the Scottish Government’s homelessness statistics and progress of the Housing (Scotland) Bill.  He explained that the Bill has completed Stage Three and the next stage is clarification around the timetable for Royal ascent.   MC reported that appeals arrangements for SHR are included in the Bill and SHR is awaiting clarity on the transition to new arrangements from Scottish Government.  MC explained the Bill involves a lot of secondary legislation and regulations, some of which SHR is involved in working groups around, for example Awaab’s Law. 

The Board considered the report and discussed:

• homelessness, noting the current position around SHR’s engagement with local authorities and how the Scottish Government’s statistics will feed into the next regulatory risk assessment.  The Board noted that this will be considered further at a workshop with SHRs’ Management Team in November and agreed it would be useful to explore all perspectives at this session.  It also discussed potential drivers for the statistical position,  noting there is data publicly available around households in temporary accommodation that MC will touch on at the forthcoming workshop;
• funding for cladding, noting the ongoing data collection by Scottish Government, which will inform the resources that may be needed for remediation and that HS will keep the Board updated; and
• potential for further data collections on cladding, noting SHR’s role to understand the impact of tenant and resident safety as well as RSL finances for all impacted properties.

The Board thanked MC and noted the report. 

Actions: MC to update the terms of reference for the Tenants Together (Scotland) Scottish Housing Regulator Liaison Group

Budget Submission and next steps for the regulatory risk assessment

MC presented a draft budget submission to Scottish Government setting out SHR’s resourcing needs for 2026/27.  He highlighted that it reflects the uncertainty around the budget process this year and his current understanding for the Scottish Government to present the budget to Scottish Parliament on 13 January 2026, which he explained is around a month later than normal.  MC explained that the pay settlement is now at ballot stage with the unions and how this impacts SHR’s projections.  The Board noted the pay settlement figures would be incorporated for the final submission.

GC and MC reflected on a recent meeting with Scottish Government colleagues and the tone of conversation around budget planning for SHR and the wider Scottish Government. GC highlighted to the Board that charging for regulation is not currently provided for under legislation and could merit future discussions. It noted the different arrangements in England including the various social housing business models.

The Board discussed the public body funding landscape over time, noting the increase in the core Scottish Government headcount during Covid and the likely future direction of travel. It agreed that smaller organisations like SHR can be agile and lean and that many of these public bodies are ahead of the transition that Scottish Government is embarking on.   The Board agreed it was essential to maintain the trust of stakeholders.

The Board also discussed

• the challenge for a small organisation with limited turnover to being able to use any vacancies to balance budgets;
• impact and risks to the sector and the need to be very clear about any consequences.  It also noted that that future work priorities have yet to be agreed by the Board, so it is not fully possible to totally identify at this time what SHR would not do.  It agreed that examples of choices should be explained to Scottish Government and to emphasise that there are no risk-free options and all will have impacts over time;
• the importance of saying more about the benefits of SHR’s work, especially around proactive and preventative work;
• stakeholder engagement expectations, noting feedback from the Scottish Parliament’s Local Government, Housing and Planning Committee;
• risks to moving away from current practice or input to new regulation to come, especially those that relate to tenant and resident safety and potential preventative thematic work, such as any update to the development thematic that many stakeholders have asked about.

The Board thanked MC and asked him to take account of feedback as he finalises the submission and to recirculate it for approval by email.

Action: MC to take account of feedback as he finalises the submission and to recirculate it for approval by email.

Standing Orders review

RH presented update proposals for SHR Board’s Standing Orders.  She explained that ARAC considered these in September 2025 and the Committee is recommending the updates set out.  The Board noted that the updates are minimal with no significant changes.  It noted new the information, mapping out the cyclical decisions that the Board retains. 

The Board thanked ARAC and RH and approved the refreshed Standing Orders.

Action: RH to update the Standing Orders as agreed by the Board and publish these on SHR’s website.

Board survey proposals

RH presented proposals for the 2025 staff survey on SHR’s Board.  The Board  considered the proposals and discussed:

• seeking feedback from staff on SHR’s governance arrangements;
• testing the value that staff place on the annual survey;
• asking about confidence in the Board to respond to findings;
• staff representation, noting the high staff engagement scores for SHR in the People Survey and that there is a staff group that considers the People survey findings; and
• how the Board assures itself that it is engaging effectively with staff, noting the joint annual workshop as an opportunity to discuss and that there are close links with themes in the Civil Service People survey that it will consider in February 2026.

The Board asked RH to take account of its feedback and issue the survey to staff.  It also agreed to take some time before the workshop in June to consider how it to best use time with SHR staff. 

Actions

• RH to take account of its feedback and issue the survey to staff.
• SHR Board to consider how it to best use time with SHR staff ahead of the workshop in June 2026.

Regulatory engagement – serious casework

HS presented an update on the most serious regulatory casework. She explained that SHR now has assurances for BT Loch Aillse agus an Eilein Sgitheanaich – Locahalsh and Skye Housing Association and will be publishing a new engagement plan to show it is compliant. 

The Board discussed the resource cost of non-statutory intensive casework and statutory intervention and if it is possible to make comparative estimates. It noted that SHR treats each engagement on a case by case basis and willingness and ability to improve are important criteria when considering possible statutory interventions.  It noted that statutory intervention is likely to be more resource intensive for SHR and comes at a cost to the regulated organisation and its tenants.  It also noted that most serious case work is handled with support from SHR and others.  The Board also noted that SHR has published lessons learned reports on interventions. 

HS updated the Board on engagement with Blochairn Housing Association and the Board noted the process and timescales the organisation is working to in order to try to secure a potential transfer partner.  The Board also discussed:

• work with tenants, lenders and Scottish Government;
• the complexity of the casework, including dialogue with OSCR;
• SHR’s powers, noting it cannot compel another orgnaisation to take receipt of a landlord; and
• next steps, noting scenario planning work that SHR is preparing. 

The Board considered the other cases detailed and discussed:

• if there was any tenant representative feedback on suspension of allocations, noting that SHR is engaging with City of Edinburgh Council on these matters;
• next steps when SHR declares there is systemic failure in delivery of services. The Board noted how this is all detailed in engagement plans and relates to wider conversations planned for the forthcoming workshop in November 2025; and
• transfer-led allocations, noting this is about the length of the chain of lets, so that a landlord can maximise the number of people impacted and this has been in operation across the social housing sector in Scotland for many years. 

The Board thanked HS and her team, noted the report.

AOB

Annual report & accounts - IM presented the final version of SHR’s annual report and accounts for 2024/25, which had been circulated previously by email.  He explained that the later arrival of pension information meant it was easier for the Board to consider it at the meeting rather than take a decision by email.  IM reported that the report now includes pension data and some final adjustments required by audit.  IM explained that the auditors are content with the report and accounts.  MC as accountable officer confirmed that he is happy with the data included and final adjustments to the report and accounts.  

IM also explained that pension information is released in tranches and that SHR happened to be in the last release, which resulted in the delay.  

The Board approved SHR’s annual report and accounts for 2024/25 for signing by MC as accountable office and SHR’s auditors. 

Action: IM to arrange signing of the annual report and accounts for 2024/25, lay the report before the Scottish Parliament and publish it.  

All staff feedback - RH reported that she will soon be reaching out to Board members seeking volunteers for attending all staff briefing sessions during 2026. 

Agenda planner

The Board noted the agenda planner.  

Effectiveness of meetings and papers

The Board considered the effectiveness of the meeting and papers.  It agreed that it was content.  KP thanked the Board for the opportunity to observe the meeting and provided feedback on her experience. 

DONMs

The Board will meet on 5 November for a workshop with Management Team.  It noted that Cabinet Secretary for Housing will also attend for part of this meeting.  The following Board meeting will be on 2 December 2025.

Private meeting

The Board met in private with the Chief Executive. 

Briefings

Between the 26 August and 4 October 2205:

• 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