1. Welcome and Introductions
Kelda welcomed everyone to the meeting
Attendees: Shona Gorman; June Anderson; John Duffy; Margaret Dymond; Liz Richardson; Gordon Saunders; Kelda McMichael (SHR); Tracey Houston (SHR)
Observers: Jenny Kerr (SHR); Linda McKenna (SHR); Colin Stewart (Board Member); Helen Trouten–Torres (Board Member)
Apologies: Bruce Cuthbertson
2. Declarations of Interest and Minute of Last Meeting
Gordon declared as a TIS Board member and Margaret as a TPAS Board member. The minute of the last meeting was accepted with one small amendment.
3. SHR updates
i. New Regulatory Framework
Kelda advised that following consultation, SHR’s new Regulatory Framework went live on 1 April 2024, retaining a focus on SHR’s statutory objective to safeguard and promote the interests of tenants, people who are homeless, factored owners and Gypsy/Travellers. Kelda confirmed that SHR will continue to publish easy-to-access/use information for tenants about their landlord’s performance and to promote a culture of assurance, openness and transparency. In response to the feedback from stakeholders, she also noted that SHR has maintained much from the previous Framework.
Alongside the new regulatory framework, SHR has published associated statutory guidance for landlords and will shortly publish a “tenants guide to how we regulate”.
ii. Complaints and Serious Concerns Factsheets
Kelda advised that SHR has published two factsheets - one for tenants and one for landlords - about raising complaints and serious concerns about a landlord. The term ‘serious concerns’ replaces ‘SPFs – Significant Performance Failures’ to clarify the issues tenants can bring to SHR and when and how these fit with other routes for tenants to complain to their landlord and the Scottish Public Services Ombudsman. The leaflet states that SHR expects social landlords to make it easy for tenants and other service users to talk to them and get the information they need about the service they provide and decisions they make.
As the group had asked specifically about complaints and SPFs and damp and mould, Kelda advised that this would involve the same process as noted above.
Kelda noted that a British Sign Language (BSL) version of the tenant factsheet will also be published.
iii. Tenants Guide to How we Regulate
SHR plans to publish a new tenants guide to how we regulate in May. A draft was shared with the group in March and was also reviewed by Tenant Advisors. Kelda thanked the group for their feedback, advising that some changes had been made as a result.
The update to the guide is designed to help tenants and service users learn more about the Regulator and how it works. It also explains how tenants can find out about their landlord, what they can expect from them, and how to raise a serious concern.
SHR will publish a British Sign Language (BSL) version of the guide at the same time as the published guide.
iv. Engagement Plans and Risk Assessments
Kelda presented a slideshow to explain more about the recent publication of the new engagement plans for all social landlords; and the summary of the outcomes of SHR’s annual regulatory risk assessment. These were published on 2 April.
Engagement Plans set out the key risks that social landlords face and SHR’s requirements of each landlord and how SHR will engage with them. This includes the planned engagement with Local Authorities on homelessness services. The slideshow provided an overview of the type of issues SHR are engaging with social landlords about.
She also explained that the summary report sets out the main risks affecting all social landlords. It highlights that systemic failure is now impacting the delivery of homelessness services in some areas of Scotland. It also describes heightened risks around developing new homes and maintaining existing homes. The report further sets out the challenges for social landlords in keeping rents affordable for tenants whilst dealing with rising costs due to the impact of inflation and increased interest rates.
v. Tenant Advisors and National Panel
Kelda provided an update on Tenant Advisors (TAs) and the National Panel.
The National Panel survey was issued in January and included topics on rent affordability, rent consultation, financial circumstances/cost of living, heating your home, participation and digital access, and communication. SHR’s contractor has also undertaken in-depth focussed work. A report of the outcomes will be published in June.
SHR will shortly publish a “tenants guide to how we regulate”. TAs completed a formal review of the draft guide and the feedback was used to make some changes. The next TA exercise is currently at the planning stage and will be on the ARC/ performance management information.
vi. Tenant Participation and Gypsy/Traveller Thematic
SHR’s programme of work with TPAS and MECOPP is now complete. A survey was issued to all social landlords, with a good response rate of 114 responses. It included questions on the current approach to tenant participation, with a focus on engaging with harder to reach groups. TPAS also ran a series of Focus Groups, with good representation from the Gypsy/Traveller community. TPAS has reported the findings from both sources to SHR which will now be used to inform a thematic assessment of the current state of tenant participation across social housing in Scotland. This will likely be published at the end of the summer.
vii. ARC Indicator Review
As part of the Framework review, SHR committed to undertake a review of the current indicators for the Annual Return on the Scottish Social Housing Charter. Kelda explained that a SHR project team is leading the project which will include tenant and service user engagement to seek views on the way in which information from the Charter return is made available to them.
Kelda explained that earlier this year, SHR’s National Panel of Tenants and Service Users were posed questions on the Charter indicators and the project team are also planning a Tenant Advisor exercise.
She noted that the project team were also considering how to gather the views of the group, possibly at the October meeting.
Kelda noted that there were also two advisory groups of landlords and sector stakeholders for both general indicators and tenant & resident safety indicators in place. She explained that the purpose of these groups will be to provide input on current and potential performance indicators and how these are collected. How membership of the Advisory Groups was decided was discussed by the group.
Kelda noted that the proposals from all of this work will inform the formal consultation which will be open to all interested parties and would give all tenants and service users the opportunity to contribute their views.
Kelda confirmed that there is a clear focus on damp & mould and broader tenant safety issues within the project and in-depth work into how the ‘big seven’ tenant and resident safety measures of gas, electric, fire, damp and mould, water, asbestos and lifts, can be regulated more closely. She also reminded the group that the Scottish Social Housing Charter (of which the ARC reports on) is set by the Scottish Government and not SHR.
As some members of the group expressed a wish for earlier involvement, Kelda suggested a discussion with the project team at the July (rather than the October) meeting might be helpful and agreed to speak to the project team, and come back to the group with proposals and also to provide feedback on other potential opportunities for involvement of tenants and the Regional Networks.
viii. Damp and Mould
Damp and Mould had been previously discussed during the meeting. The group asked for any other specific advice over and above the “complaint and serious concerns” route for damp and mould issues. Kelda reminded the group that a joint sector briefing note was published in February 2023. It is aimed at landlords and highlights advice and good practice for landlords to follow. She also shared on screen a useful section on the Shelter Scotland Website, which provides advice to tenants on damp and mould.
The group expressed a number of their concerns around the issue of damp and mould. Kelda advised that there is currently no specific statutory obligations on landlords around damp and mould which were comparable to gas safety checks, LD2 fire alarms or EICR electrical testing. This can make information on damp and mould more difficult to collect, assess and monitor; but that the ARC review hoped to find an appropriate reporting mechanism to allow reporting by social landlords on damp and mould performance.
ix. Reinforced Autoclave Aerated Concrete (RAAC)
The group had requested an update on RAAC.
Kelda explained that SHR published an update on RAAC on 28 March 2024 showing that 13 landlords had identified the presence of RAAC in their stock, with 1,994 homes affected. 125 landlords have confirmed that there is no RAAC present in their tenants’ homes; and 27 continue to investigate the presence of RAAC. The number of homes still under investigation at that time was 8,311. Kelda explained that anecdotally, SHR know that this figure has already decreased, because landlords continue to provide us with updates on investigations.
The thirteen landlords that have identified the presence of RAAC in some of their homes are: Aberdeen City Council; Almond Housing Association Ltd; Angus Council; Bield Housing & Care; The City of Edinburgh Council; Clackmannanshire Council; Dundee City Council; North Lanarkshire Council; Sanctuary Scotland Housing Association Ltd; South Lanarkshire Council; Stirling Council; Viewpoint Housing Association Ltd; and West Lothian Council. SHR has engaged with these landlords and have assurance that they have appropriate management plans in place for the affected homes. This is explained in their Engagement Plans.
Kelda noted that if other landlords find RAAC in homes; SHR will update their Engagement Plans accordingly.
She also confirmed that SHR will provide a further formal update publicly.
x. Annual Assurance Statements – Preparation Letter and Programme of Visits
Kelda advised that SHR wrote to all landlords in March with advice on preparing their Annual Assurance Statements, due for submission by 31 October. SHR has asked landlords to confirm whether they meet all duties in relation to tenant and resident safety. SHR has also asked that any landlords which have identified RAAC in their homes and who don’t have a plan to manage the risks associated with this to highlight this in their Annual Assurance Statement.
In April, SHR also announced a third annual programme of visits to social landlords to discuss their Annual Assurance Statements. This year, SHR will visit 13 landlords to understand their approach to preparing their Statement and how they have assured themselves about compliance with Regulatory Requirements and Standards. The visits will have a particular focus on how the landlords have assured themselves about compliance with their tenant and resident safety duties, and for RSLs will also focus on their approach to financial planning and the assumptions which underpin their financial plans. SHR will publish a report later this year on the findings to share lessons learned with all social landlords.
xi. RSL Finances
SHR published a report on RSLs audited financial statements in March. Key findings of the analysis were that RSL liquidity remains strong despite the challenging economic and operating conditions, but they have reduced financial headroom and reduced capacity to respond to further challenges.
The report highlights that RSLs’ operating costs rose at a faster rate than turnover and increased by 5.7% to £1.6 billion, while their operating surplus dropped by 3.4% to just under £370 million. RSLs’ interest cover also reduced, reflecting the tightening financial headroom for RSLs.
Overall, the RSL sector’s financial position is weaker than for several years. The scale of the financial challenges faced by RSLs’ since March 2023 remains significant, reflecting the continuing difficulties and volatility in their operating environment. It is therefore important that RSLs’ continue to adjust their business plans in response to changing circumstances to manage their resources effectively to ensure their financial well-being, while maintaining rents at a level that tenants can afford to pay.
In addition, Kelda noted that all RSL annual accounts for 22/23 are now available on the SHR website in the Landlord Directory.
xii. Average Rent Increase
The group had requested an update on average rent increases. Kelda reminded the group that SHR is not collecting this information because the Scottish Government has not requested this (last year was a one off to help with the Bill around rent freezes).
Kelda advised that SHR will have a record from the ARC in June 2024. The data on average rent increases should be available by the end of August 2024 (in the National report), but SHR will provide an update at the July meeting if available earlier.
xiii. SHR board updates
Kelda advised that the SHR Board met on 27 February and 26 March. The 27 February Board meeting discussed:
- Audit and Risk Assurance Committee (ARAC) terms of reference update
- Outcomes of the People and Board surveys
- Callum Chomczuk from CIH attended as guest speaker
The 26 March Board meeting discussed:
- SHR office accommodation – SHR will be moving into the Social Security Scotland offices at High Street. The date is yet to be agreed and a meeting room will be available for future in person meetings.
- SHR Framework Agreement with Scottish Ministers
- A draft of the annual report narrative, draft strategy and draft risk management strategy
- A draft of the 24/25 budget and operating plan
- Join the SHR Board
Kelda advised that Scottish Ministers were recruiting for a new SHR Board Member, and had passed on these details to the group previously. The closing date was 6 May 2024, the day before the meeting.
Following recruitment, Board membership will temporarily rise to nine. Further recruitment to the Board will take place next year as the SHR Chair and two Board members finish their second terms. Next year’s campaign will be for one new member and a new Chair starting in July 2025 and the overall number will then return to eight.
Kelda explained that the Board sets the Regulator’s strategic direction and is responsible for governance and oversight of SHR. SHR want to attract candidates from all walks of life; with a range of viewpoints and life experiences. In particular SHR are encouraging applications from women and other underrepresented groups in Scottish public life.
- Board Gender Equality Update
Kelda explained that the Gender Representation on Public Boards (Scotland) Act 2018 was introduced to help address the underrepresentation of women in public life. Public bodies must report on progress towards meeting the requirements.
The Regulator’s Board currently has four women and four men on its Board. SHR are pleased to have made good progress around gender equality on the Board and welcome the diversity of thought and input that brings. SHR will continue to work hard on this as it considers future succession planning including for the ongoing and future campaigns by Scottish Ministers to make appointments to the Board.
xiv. Recent and upcoming publications and events
- Kelda advised that SHR had published its 3 year corporate strategy & annual workplan a few days before the meeting. This sets out what it will do to fulfil its statutory objective and functions over the three years to March 2027 and the wider contribution that it aims to make in social housing and also as a Scottish public body.
- George (SHR Chair) and Lindsay (SHR Board Member) met with homelessness advice agencies on 30 April
- SHR will shortly update its Business Planning Guidance for RSLs
- SHR will publish the “tenants and service users guide to how we regulate” in May.
- Nicola Harcus, SHR Assistant Director, will speak at the SFHA conference on the work on ARC indicators on 11 June
- Michael Cameron, SHR CEO, will speak at the Housing 2024 Conference in Manchester on 26 June in a session entitled “In conversation with the UK social housing regulators”
- In August SHR will publish the National Report on the Scottish Social Housing Charter and update Landlord reports and the comparison tool
4. Regional networks update
Shona advised that the Regional Networks were nearing the end of the rebranding process. A new name, more reflective of the purpose of the group, had been chosen together with a new logo. The group will be known as ‘Tenants Together’ after constitutional and name changes are approved on 1 June. Individual tenant members can get involved (a clear application process will be put in place) and Tenants Together will act on a Scotland wide basis, rather than a regional basis, at least in the first instance. Whilst there will no longer be representation from the four regions, the Committee will be limited to 32 members, so all previous regional member will have the opportunity for a seat. If the AGM approves to dissolve the current constitution and reconstitute, the new website will be https://tenantstogether.scot/. A free subscription service to receive a regular newsletter will be announced on the website in June. Tenants and service users subscribing can become a member and can complete the application process to also become a formal committee member. Tenants without internet access can also request to join via the Scottish Government. An announcement will be made at the TPAS conference in June with some low-key promotional activity at the SFHA event on 12 June.
5. Any other business
SHR previously discussed the terms of reference document for the group, and when it should be updated (it was technically due to be updated in January 2024). It was agreed to update this at the July meeting, following the conclusion of the Network review and rebrand.
6. Date of next meeting
The date of the next meeting is 30 July 2024 online. An in-person meeting will be held on Tuesday 29 October 2024. This will take place either in SHR’s new office or at Atlantic Quay. All members are invited to attend in person; and an appropriate budget is in place to facilitate this.