During 2023/24 there was a reduction in both the number of RSLs arranging new borrowing and the level of new finance being put in place compared with 2022/23. However, overall liquidity in the sector remains robust. These are the main findings of a new report published today by the Scottish Housing Regulator.
The report is the Regulator’s annual analysis of RSL loan portfolio returns for the period April 2023 to March 2024.
The report highlights that 19 RSLs arranged new finance during 2023/24, totalling £198 million, bringing the total agreed borrowing facilities in Scottish RSLs to £6.84 billion. RSLs also plan to increase their borrowing by £1.5 billion over the next five years.
Shaun Keenan, Assistant Director of Financial Regulation, said:
“RSLs in general have maintained sufficient liquidity to manage the effects of increased interest payments and operating costs during recent years, even with interest rates reaching a 15 year high. Despite the material rise in the cost of debt and the ongoing changes in the financial markets, RSLs intend to borrow an additional £1.5 billion over the course of the next five years.
“It is therefore crucial that RSLs continue to ensure that they have access to the right skills and resources to ensure that the financial products supporting their operations are the best fit for the RSL. It is also important that RSLs maintain the confidence of current and potential lenders and investors.
“When RSLs show indications of low liquidity we will engage with them."
Notes to editors
- The Scottish Housing Regulator (SHR) was established on 1 April 2011 under the Housing (Scotland) Act 2010. Its objective is to safeguard and promote the interests of tenants and others who use local authority and RSL housing services. The Regulator operates independently of Scottish Ministers and is accountable directly to the Scottish Parliament. It assumed its full regulatory responsibilities on 1 April 2012. The Regulator consists of the Chair and eight Board members. More information about the Regulator can be found on its website at housingregulator.gov.scot
- SHR sets out how it currently regulates social landlords in its published framework – Regulation of Social Housing in Scotland