This landlord is a subsidiary of Link Group. You can read the engagement plan for Link Group and all of its subsidiaries below.
Why we are engaging with Link Group Ltd (Link Group)
We are engaging with Link Group about its financial management, development plans, the transfer of engagements from Link Housing Association (Link HA) and because it is a systemically important landlord.
Link Group has four registered subsidiaries, Horizon Housing Association Ltd (Horizon), Larkfield Housing Association Ltd (Larkfield); Link Housing Association (Link HA) and West Highland Housing Association Ltd (West Highland).
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 Link Group’s size, turnover and level of debt we consider it to be systemically important.
Link is one of the largest developers of new affordable housing in Scotland and has plans to grow through a considerable programme of new homes for social rent, mid-market rent and low cost home ownership. Link will receive significant public subsidy to help achieve this. It has told us that it will need to obtain new private finance to support this. We will engage with Link to get assurance about how it is managing the risks to the organisation including levels of debt and on-going development plans.
Link HA plans to transfer its engagements to Link Group on 1 July 2025. As Link HA has no tenants, there is no requirement for a tenant ballot on the proposals. Link Group will then support Link HA as it progresses removal from the Register of Social Landlords.
What Link Group must do
Link Group must:
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send us copies of its Board and audit committee minutes as they become available;
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send us by 30 April 2025:
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its approved business plan and updated risk register;
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30 year financial projections consisting of statement of comprehensive income, statement of financial position and statement of cash flows complete with assumptions and explanatory narrative;
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a comparison of projected financial loan covenants against current covenant requirements;
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financial sensitivity analysis which considers the key risks, the mitigation strategies for these risks and a comparison of the resultant covenant calculations with the actual covenant requirements;
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report to the Board in respect of the approved 30 year projections, sensitivity analysis and covenant compliance; and
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evidence of how it demonstrates affordability for its tenants.
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send us an update on its development programme by 31 October 2025. This will include its latest report to the governing body/appropriate committee about development and details of the scale and tenure mix, timescales for delivery and any material delays or changes to the programme;
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tell us if there are any material adverse changes to its development plans which might affect its financial position or reputation, in line with our notifiable events guidance; and
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send us confirmation of the transfer of Link HA on 1 July 2025 and provide us with the information we require to progress the de-registration of Link HA. This includes the final audited financial statements and auditors report.
What we will do
We will:
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review the minutes of the Board and audit committee meetings and liaise as necessary;
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observe Link Group’s Board;
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review the business plan and financial information;
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meet with Link Group’s senior staff to discuss its business plan, the financial information and any risks to the organisation;
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review the development update and engage as necessary;
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consider the de-registration application for Link HA and engage as necessary; and
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update our published engagement plan in the light of any material change to our planned engagement with Link Group.
Regulatory Returns
Link Group must provide us with the following annual regulatory returns and alerts us to notifiable events as appropriate:
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Annual Assurance Statement;
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audited financial statements and external auditor’s management letter;
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loan portfolio return;
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five year financial projections; and
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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.