RSLs ‘in good financial health’ in face of challenging shift in landscape, says Regulator

Most registered social landlords (RSLs) remain in good financial health, but the sector is facing new challenges, the Scottish Housing Regulator told a gathering of RSL finance professionals.

Speaking at the Scottish Federation of Housing Associations (SFHA) annual finance conference in Aviemore last week, Ian Brennan, director of regulation (finance and risk) said the Regulator recognises that most RSLs have developed expertise to manage known risks but he noted that the landscape has shifted quickly over the last year.

RSLs are facing new challenges that may arise from Brexit, the Office for National Statistics (ONS) reclassification of RSLs, and increased development activity.

Ian discussed the ONS’s decision and the Scottish Government’s commitment to legislate to reverse this. He also stressed the Regulator’s commitment to working constructively to deal with the ensuing challenges.

Ian said: “We will do everything we can to continue to regulate effectively to protect the interests of tenants and future tenants and provide assurance to lenders that the sector is a good place to invest.”

In a wide-ranging speech, Ian also spoke to delegates about the sector’s financial health and discussed the Regulator’s recent statutory intervention in a small number of RSLs.

Ian noted that the interventions have caught the attention of ratings agencies, lenders and the housing media but are not indicative of a wider problem within the sector.

Ian’s speech is available to read in full here.