SHR Board Minutes Minutes - 20 August 2024

Present

Welcome

GW welcomed all present, especially SHR staff observers and the guest speakers TC, JM, JK and YB from ALACHO.      

JM presented to the Board on the work of ALACHO.  He highlighted:

• the purpose of ALACHO and how it works with stakeholders;
• pressure on Housing Revenue Account business plans, new build and demolition work;
• issues with historical debt and cuts to grants;
• the housing emergency, changes in housing and particularly homelessness since 2012, through and post pandemic – the impact on the people in temporary accommodation and local authority services;
• void performance, including issues with utilities;
• aspirations to return to rapid re-housing, how this has been hampered by backlogs and in particular within the central belt. Work to flip temporary to permanent, reduce void turnaround, utilise the Scottish welfare fund and the work of empty homes officers;
• delays in the distribution of Scottish Government funding for purchasing acquisitions;
• the need to scale up prevention work, how partnership working is improving, but that challenges remain;
• the Scottish Government’s Homelessness Together Plan and how that has been overtaken by the local and national housing emergencies; and
• the need for a different approach locally and nationally, the importance of funding to provide more homes and how re-prioritisation by Scottish Government is important.

The Board considered the presentation and discussed with ALACHO:

• Housing to 2040, noting recent correspondence from the housing coalition to Scottish Government emphasising the importance of housing supply and associated funding;
• the large volume of supply that is potentially required to address backlogs that is not expected to be achieved;
• rent caps, noting clear messages from investors to Scottish Ministers on the impact on mid-market rented properties;
• affordability of private sector leasing schemes, noting varying rent structure approaches, challenges around the type of accommodation and the funding for these as well as the experience of the people who use these services;
• continued aspirations for Housing to 2040 and the place for all tenure solutions and a return to rapid rehousing, noting how the pandemic put this off track;
• the range of priorities set by Scottish Government and that ALACHO is calling for reprioritisation to allow for focus;
• regulatory engagement between Local Authorities and SHR, noting a focus on mitigating the housing emergency risks, getting performance back on track and the scrutiny provided by elected members. ALACHO welcomes that SHR acknowledges the challenging national and local context and pressure on frontline staff;
• learning that local authorities are seeking from those who have declared an emergency; and
• when the emergency status may cease and what steps are needed to achieve this, agreeing it is important that this does not become the norm.

The Board thanked ALACHO colleagues for making time to meet with it and welcomed the opportunity for discussions.  It noted that the Scottish Government will be hosting a further Housing to 2040 Strategy Board meeting in August.  

Apologies and declarations

The Board noted apologies from SHR Board member Marieke Dwarshuis (MD). 

CS declared that he has been elected Chair of Tenants Together Scotland.  The Board noted his declaration.  There were no declarations of interest. 

Consent Agenda

The Board noted and approved the consent agenda including:

• the Chair and Member activity report;
• new ARAC Chair and members appointment letters (subject to some corrections);
• Board minutes from May 2024 and a private note of the Board workshop in June 2024;
• ARAC update; and
• the matters arising report.

GW updated the Board on recruitment and the Board noted it would be joined by a new member from 1 October 2024. 

Chief Executive’s Report

MC presented on issues and developments that impact regulated bodies, the wider housing environment and SHR.

The Board considered and approved a clarification point to SHR’s Standing Orders delegating approval of all voluntary deregistration cases to the Chief Executive. 

MC also highlighted:

• the forthcoming Housing to 2040 Strategic Board meeting that he and CS will be attending;
• the wider range of topics covered in his paper and how that reflects the scale of current activities in the sector; and
• Scottish Government’s work to transfer to new IT systems for HR and Finance and the impact this having on SHR and its resources.

The Board MC’s report and discussed:

• contingency planning around the new HR and Finance systems, noting that there will be a shut down and switch over period, but that there is no overlap between the new and old systems and that the project is heavily resourced in the core by Scottish Government, with a similar expectation for input from public bodies like SHR. It also noted some personal positive experience of the new system that is being introduced;
• RAAC, noting SHR asked for assurance before Christmas 2023 and since then the numbers of landlords and homes identified as having RAAC has decreased. It noted the level of homes are still under investigations and SHR continues to be advised of changes with a further information request planning that week.  It noted that some landlords have experienced issues sourcing surveyors and specialist consultants and that a further update will be  provided to the Board in October; and
• resource impact of new legislation around the rights of the child, noting that SHR does not provide direct services that will be impacted, but there will be implications for its corporate parent role and there are associated reporting requirements. It noted that there will be impacts on how landlords deliver services and this could influence SHR’s approach longer term.  It noted SHR has an action plan in place and is seeking collaboration opportunities with other public bodies and that the Board will receive a presentation on the action plan in November 2024;

The Board noted the Chief Executive’s report.

Action:

• RH to update SHR’s standing orders.
• MC to update the Board on RAAC performance in October.

Review of the Social Housing Charter Indicators

HS, NH & SL presented a proposed consultation package for the review of the Social Housing Chater Indictors to the Board.  They highlighted:

• the extensive work carried out by the team to prepare the package including conversations with landlords, tenants, advisory groups, other regulators and health and safety experts and the wide range of views provided;
• that the small proposed increase in the overall number of indicators is due to tenant and resident safety and that landlords can still collect and use locally any indicators that are proposed for removal; and
• information that will be collected via Annual Assurance Statements.

The Board considered the proposed consultation package and discussed:

• the importance of ensuring legal checks;
• if an approach to satisfaction questions that does not focus on only one group is possible and if there are any opportunities for co-production;
• language around protected characteristics and if the equalities impact assessment could also demonstrate benefits for tenants and service users;
• detail in the technical guidance in relation to self contained units;
• presentation of indicators in relation to Chater outcomes, noting a list is available;
• what the focus on repeat repairs will achieve;
• damp and mould definitions, noting the range used by landlords for reporting and recording, potential for disparity, but also a risk of underreporting if definitions are set at this time. The Board also noted joint work with SFHA and CIH to set the context for how landlords should consider reports and there remains scope for further thematic work around definitions in the future. It welcomed that and agreed it is important to highlight the joint work;
• the proposal to remove the percentage of tenancy offers refused, noting that data can be still be collected by landlords for using locally;
• use of median and average when considering non-emergency repairs, potential impact on figures and related cost effectiveness performance considerations. It noted how average is currently collated and noted that a change to median would involve further data collection and may omit the component parts, but agreed it was important to seek views on collecting this data from landlords via the consultation;
• other areas of potential interests including waiting lists of adaptations or housing accessibility needs, place making qualitative information; and
• the treatment of void figures.

The Board thanked the team and welcomed the work with stakeholders to develop the consultation package.  The Board approved the broad approach proposed asking HS/NH/SL to take account of the Board’s feedback and consider what changes could be made as it finalises the package for consultation and to take up the opportunity for follow up discussion with members around more detailed feedback.  

Actions: HS/NH/SL to take account of the Board feedback considering what changes may be made and discuss more detailed comments with individual members following the meeting and to finalise the package for consultation, sharing any changes with the Board for information ahead of publication. 

ARAC Statement of Assurance

SW presented on behalf of ARAC the annual statement of assurance to the Board and Accountable Officer.  The Board thanked ARAC for its work during the year and noted the statement of assurance.

Annual report & accounts

CN presented SHR’s annual report and accounts for 2023/24 to the Board. She highlighted the preparation process to date and forthcoming.  CN reported that the external audit opinion is unqualified and that a small number of changes had been made in response to audit requests.  She explained that pension figures are delayed and this is issue is widespread and wording has been agreed with audit.  She also highlighted that as SHR has moved office after financial year-end, some wording has also been agreed to reflect that.  

The Board noted the updates.  It considered the  annual report and approved it for signing by MC as Accountable Officer. The Board thanked all involved in preparation. 

Actions: MC to sign the annual report and accounts as Accountable Officer and arrange for these to be laid before the Scottish Parliament and published.  

Q1 Budget Update

CN presented the Q1 budget update to the Board.  She highlighted that the paper was prepared prior to the Scottish Government’s announcement on spending controls.  The Board noted it would discuss this further in the private session.  CN reported that the overspend at the time of preparation the forecast outturn was £31.4K.  She reported that although SHR does not have any current vacancies it has achieved some savings around changes in hours and appointment scales as well as in through the recent office move.

CN reported that no capital funding was required for the office move, so at mid-year the likely recommendation may be to return the majority of the £100k capital budget. She explained some work is ongoing to explore website related capital projects. 

The Board considered the update and discussed:

• the inherent risks associated with applying vacancy rates, noting that SHR’s average was around 5% in the previous year and is currently 3.4% and if any staff leave this could have a very significant impact and risk underspend; and
• the potential for in-year budget cuts, noting that the Scottish Parliament would need to consider any changes to the overall Scottish Government budget and that currently the request from the Scottish Government is only for savings to be identified.

The Board noted the update.

Q1 Corporate Performance Report & Risk Register

MC presented the first corporate performance report for 2024/25.  The Board considered the report and discussed the delay in the publication of the Scottish Government’s homelessness statistics, how this impacts SHR’s National Charter report and risk assessment work.  It noted that as these are national statistics, rules apply that prevent SHR from having any advance sight of the data.   The Board also noted that SHR will consider the most appropriate way to provide the information normally incorporated into the Charter report once available.  

The Board noted the Q1 report and SHR’s risk register. 

National Charter Report

NH and SL presented on the forthcoming National Charter report based on the 2023/24 landlord returns.   They set out the headline findings and in particular in the areas that tenants have told SHR matter most, highlighting these were recently tested.  They also set out the timescales for publishing and laying the report before the Scottish Parliament.  The Board considered the presentation and discussed:

• gas safety performance, noting some area-specific issues and agreed it would be useful consider how best to reflect that clearly in the final report. It also noted the HSE guidance on the timing of checks and engagement with individual landlords around performance;
• overall performance, welcoming that this remained positive despite the challenging context and noting that homelessness data will follow once available
• factored owner satisfaction, noting this covers common repairs, so even when repairs are required owners may not be satisfied and that factoring fees increased significantly last year. It also noted a decrease in Gypsy/Travellers satisfaction, and how this may be linked to site conditions.

The Board thanked SL and NH.  It noted the findings and the timescale for production of the forthcoming report. The Board agreed to spend some future agenda time considering factoring and Gypsy/Travellers satisfaction further.

Actions: HS to discuss factoring and Gypsy Travellers satisfaction further with SHR Board.

AOB, agenda planner, effectiveness of meeting & papers and DONM

There were no AOB items.  

The Board considered and noted the agenda planner.  It approved dates for meetings and workshops during 2025.  It also noted that the provisional meeting time held in diaries for the 17 September 2024 will be utilised for discussions on the Scottish Government’s spending controls.  GW reported that future guest speakers are being arranged for 2025 and the Board welcome that the Auditor General will meet with it in February 2025. 

The Board noted and thanked the staff observers for their feedback.  It discussed the effectiveness of the meeting and papers and observed that it had spent more time on some agenda items than planned for.  It also noted the volume of papers for this meeting, but welcomed the quality.  Finally, the Board noted some technical issues experienced by a couple of members.  

The Board noted that it will meet with the CEO on 17 September 2024, and it will also meet on 8 October 2024.

Private meeting

The Board met with MC, HS and IM in private. 

Briefings

Between the 20 August and 8 October 2024,  the Board received briefings covering:

• SHR publications and media update including:
• National Chater report
• Charter Indicator consultation package
• British Sign Language Thematic
• Best Value update considered by SHR’s ARAC
• ARAC papers
• Scottish Government Homelessness Statistics
• Scottish Parliament’s call for views on SHR