Registered as North Glasgow Housing Association, North Glasgow is trading as ng homes.
Why we are engaging with North Glasgow Housing Association Ltd (North Glasgow)
We are engaging with North Glasgow about its governance, tenant and resident safety and because it is a systemically important landlord.
We refer to a small number of RSLs as systemically important because of their stock size, turnover or level of debt or because of their significance within their area of operation. We need to maintain a comprehensive understanding of how their business models operate, and how they manage the risks they face and the impact these may have. So, we seek some additional assurance each year through our engagement plans. Given North Glasgow’s size, we consider it to be systemically important.
In 2023 we engaged with North Glasgow about serious failings in its handling of lift safety inspections. Following investigations the information identified North Glasgow was non-compliant with meeting its legal duties relating to health and safety specifically in relation to lift safety. North Glasgow’s self-assurance process did not identify these serious weaknesses, some of which were longstanding. Our assessment is therefore that North Glasgow does not comply with regulatory requirements to have assurance and evidence that it is meeting all of its legal obligations associated with tenant and resident safety. Regulatory Standard one further requires that social landlords comply with its legal obligations. We also have concerns about its compliance with Regulatory Standard four in relation to the governing body ensuring it receives relevant information and having effective risk management and self-assurance processes.
North Glasgow confirmed it quickly completed all lift inspection repairs and put a revised process in place to ensure that all lift inspections are appropriately handled. North Glasgow has developed an improvement plan setting out how it intends to address the issues identified.
North Glasgow has commissioned an independent governance review to report no later than April 2025 and is undertaking an audit across other areas of its tenant safety.
North Glasgow is working openly and constructively with us as it takes forward improvements.
The Housing (Scotland) Act (2010) requires us to monitor and assess the financial well-being, governance and performance of each Registered Social Landlord (RSL).
Our current assessment is that North Glasgow is non-compliant and is working towards compliance with the Regulatory Standards of Governance and Financial Management. We set out below the information that North Glasgow must provide in order to assure us that it can achieve compliance.
What North Glasgow must do
North Glasgow must:
- send us monthly updates on its progress in implementing its improvement plan and achieving compliance with our regulatory requirements including the Standards;
- send us a copy of the outcome report following completion of the independent governance review and any actions it requires to take to address the findings from the review; and
- send us a copy of its tenant safety audit report and any actions it requires to take to address the findings from the audit.
As a systemically important landlord North Glasgow must also:
- send us copies of its Board and audit committee minutes as they become available;
- send us by 30 April 2025:
- its approved business plan and updated risk register;
- the report(s) to the governing body about the plan and risk register; and
- evidence of how it demonstrates affordability for its tenants.
What we will do
We will:
- review the updates on its progress in implementing its improvement plan and achieving compliance with our regulatory requirements including the Standards, and engage as necessary;
- review the outcome report following completion of the independent governance review and any actions it requires to take to address the findings from the review, and engage as necessary; and
- review the tenant safety audit report and any actions it requires to take to address the findings from the audit, and engage as necessary.
As North Glasgow is a systemically important landlord we will also:
- review the minutes of the Board and audit committee meetings and liaise as necessary;
- observe North Glasgow’s Board;
- review the business plan and supporting information;
- meet with North Glasgow’s senior staff to discuss its business plan, the supporting information and any risks to the organisation; and
- update our published engagement plan in the light of any material change to our planned engagement with North Glasgow.
Regulatory Returns
North Glasgow must provide us with the following annual regulatory returns and alerts us to notifiable events as appropriate:
- Annual Assurance Statement;
- audited financial statements and external auditor’s management letter;
- loan portfolio return;
- five year financial projections; and
- Annual Return on the Charter.
It should also notify us of any material changes to its Annual Assurance Statement, and any tenant and resident safety matter which has been reported to or is being investigated by the Health and Safety Executive or reports from regulatory or statutory authorities or insurance providers, relating to safety concerns.