SHR Board Minutes Minutes - 28 May 2024

Present

Welcome, apologies and declarations

AW welcomed all present, especially SHR staff observers and guest speaker SN, Director for Local Government & Communities for the Scottish Government  The Board noted apologies from GW and thanked AW for chairing the meeting. There were no other apologies.  There were no declarations of interest. 

Meeting with Director of Local Government & Communities, Scottish Government

The Board met with SN, Director for Local Government & Communities, Scottish Government. 

SN presented to the Board on the Scottish Government’s key housing priorities for 2024/25. He highlighted:

• current performance and the importance of a collective effort in delivering affordable homes, the current review of the affordable housing supply programme as well as the new and emerging political context in both the Scotland and the UK;
• the work of the Housing Investment Taskforce around attracting investment products and developing a pipeline of projects, particularly around build to rent;
• homelessness in Scotland and the work that the Scottish Government is doing to respond to the housing emergency;
• temporary accommodation and partnership working with local authorities; and
• the key elements of the Housing (Scotland) Bill introduced to Parliament in March 2024 including provisions targeting homelessness prevention.

The Board and SN discussed:

• mid-market rent, noting pilot work in East Lothian and how Scottish Government is seeking to build investor confidence;
• the Housing Investment Taskforce, welcoming further clarity from Scottish Government on its role and noting work around investor confidence;
• challenges, skill shortages, gaps and work needed to address this including for example in the areas of planning and new heating technology;
• the importance of understanding the drivers for the current housing emergency in order to address this, noting the complexity and that the Scottish Government is seeking for all involved to play a role, including UK Government;
• void performance and consideration Scottish Government is giving to support landlords to do more with existing stock;
• work exploring standardisation for new build to reduce cost and construction times;
• changing standards for homes across the housing sector and how Scottish Government is considering associated gains and risks to inform future priorities, noting that this is resulting in some hesitancy and gaps in financial planning in the sector;
• consideration the Scottish Government is giving to making the best use of all public sector land assets;
• how tenants are or can be involved in Scottish Government’s work;
• child poverty, noting this is a clear priority for the new First Minister and there is recognition of the importance of good housing;
• Scottish Ministers remain committed to the new build target of 110, 000 affordable homes and that the Scottish Government  will test all options for the  delivery of this;
• planning for a longer term housing strategy, noting challenges like an adequately skilled workforce and how changes in education will need time to impact the market; and
• rent controls, noting the role of the Scottish Parliament in respect of the current Housing (Scotland) Bill and noting issues around consultation when previously introduced in Scotland.

The Board thanked SN for making time to meet with it in person and welcomed the opportunity for an open discussion

Consent Agenda

The Board noted and approved the consent agenda including:

• the Chair and Member activity report;
• Board minutes from March 2024; and
• the matters arising report.

Chief Executive’s Report

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

He highlighted a request around procurement to support and host SHR’s BI system over at least the next three years.  MC confirmed that the revenue costs set out are based on the current rates and do not take future inflation into account.  He also explained that while this would allow for procurement to be initiated, if there is any significant deviation in costs he would bring this back to the Board.

The Board considered the proposal and approved a total contract spend of up to £460K over four years to enable procurement activity for the hosting and support of the BI system to take place.

The Board considered the rest of MC’s report and discussed:

• the national housing emergency, what that might mean for SHR and how it communicates;
• challenges encountered by some of the mid market rent housing pilots being explored by Scottish Government and local authorities, noting the importance of landlords carefully managing any potential complex investment models;
• CIH membership, noting SHR is postponing a final decision on the payment of membership fees for staff and Board members until the mid year budget review, except where a board member or staff member requires CIH membership to complete a relevant qualification;
• SHR’s work to develop a thematic report on tenant participation, which has a specific focus on Gypsy/Travellers tenant participation. It noted that there has been input from  TPAS and work with SHR’s Tenant Advisors. HS confirmed that all the findings will be provided to the Board via a presentation on the thematic when finalised towards the end of the summer;
• Reidvale Housing Association, noting the current issues, the assurances being sought in relation to the plan Reidvale is developing to fully address its non-compliance with regulatory standards and the timescales for this;
• feedback from the Regional Network SHR Liaison Group around SHR’s Charter Indicator review. The Board noted a forthcoming meeting planned with the group that will be focused on informing the review.  It also noted work with recently established technical advisory groups of landlords and how all these discussions will be used by SHR to inform formal consultation proposals for the Board to agree prior to formal consultation.  The Board asked HS to consider the feedback from the Liaison Group and noted that I will have a further discussion about the ARC review at its Workshop on 18 June; and
• rebranding of the Regional Network to Tenants Together, which is will be considered formally at a forthcoming AGM noting plans for how it will seek to engage with stakeholders.

MC presented a ‘logic model’ developed using SHR’s strategy, explaining that the infographic represents the theory of how and what SHR does to produce intended outcomes and also how SHR contributes to wider outcomes.  The Board considered the model and discussed:

• if SHR can do more to express in specific indicators how effective and efficient it is in regulating and deploying resources;
• if there are satisfaction measures that could be explored, noting that effective regulation work is unlikely by nature to satisfy all stakeholders and how regulation differs from a service provision and customer model;
• plans for discussions with staff on the logic model at a forthcoming workshop with the Board in June;
• if there is merit in publishing the model; and
• the importance of continuing to develop how SHR reports on performance.

The Board noted the Chief Executive’s report.

Actions:

• MC to initiate procurement of housing and support for the BI system costing up to £460K over four years.
• HS to consider the feedback from the Regional Network SHR Liaison Group around the Charter Review;
• MC to continue to consider how SHR develops performance reporting.

Outcome of the Risk Assessment

JJ & SK presented to the Board on the outcomes of the Regulatory Risk Assessment.  JJ detailed the outcome of the risk assessment published in April 2024 for RSLs and local authorities.  JJ also provided information on housing quality, some safety measures and the areas that SHR is engaging with local authorities in relation to homelessness.  SK set out the financial health related outcomes for RSLs, the current context and SHR’s related engagement work.   They also set out plans for developing the next risk assessment. 

The Board considered the presentation and discussed:

• RAAC, noting that homes with it are generally some types constructed in the 1960s and do not relate to specific contractors;
• the reasons for the difference between local authority and RSL performance around electrical and gas safety checks, noting issues around contractors and as well as the priority given to implementation. It noted that SHR would get more information on performance on this in the ARC returns which are due by 30 May.  ;
• the measures used in the homelessness risk assessment, noting both time and outcome are considered;
• the likelihood of a landlord defaulting;
• SHR’s engagement with lenders and investors, noting feedback from them indicated the way that rent controls were introduced in Scotland impacted market and how this differed from their experience of controls in England;
• financial viability of local authorities, nothing this is out with SHR’s remit, but that individual councils will communicate budget pressures during engagement conversations with SHR and some are facing very challenging circumstances;
• what RSLs are dong to protect their financial viability, noting that SHR is seeing less investment in wider role activities, as well as reprofiling of planned maintenance all of which RSLs are balancing with the new investment asks around standards. It noted this will mean some difficult decision making for landlords; and
• capacity of potential rescue partners, noting the medium to long term pressure on the sector.

The Board thanked JJ  and SK and noted the presentation. 

Q4 Corporate Performance Report & Risk Register

MC presented the final corporate performance report for 2023/24.  The Board considered the report and discussed:

• Staff flexi balances, noting that the Executive Team have recently adopted a new monitoring approach covering staff absence, leave and flexi, and that flexi is traditional higher at this time due to the busy year end and risk assessment work; it noted that the monitoring approach will aid understanding of the impact of the forthcoming change to a 35 hour working week;
• long term absences, noting this relates to a small number of people and strategies are in place to manage impact and support them;
• 2023/24 workplans, welcoming that SHR had achieved most of what it set out to do as well as absorbing new work during the year;
• SPSO factsheets about how to make a complaint and if there should be a reference to SHR around how tenants can raise serious concerns with us;
• accessibility of SHR’s publications to those with dyslexia, asking Management Team to consider the approach taken by the SPSO;
• financial expertise and contracted advice provided to RSLs, noting some landlords will outsource aspects, particularly around treasury management and this is normally provided by well established contractors;
• progress in two intensive engagements around with local authorities on homelessness.
• how regulatory status is described in the report, noting that this will switch over to the new Regulatory Framework approach for reporting against quarter one in August 2024.

The Board also considered SHR’s risk register.  It discussed the pressures on the social housing sector and how that  translates to risks to SHR achieving its objective and priorities.   It noted that SHR has limited tools in which to mitigate or control the risk.  The Board also note that it would likely impact on the risk around the effectiveness of SHR’s Regulatory Framework and that there is some coverage around risk R8: a development out with SHR’s control that could bring reputational damage or compromise SHR’s ability to regulate. 

The Board discussed the fairly recent messages that SHR had communicated around systemic failure in homelessness and how these were received by stakeholders.  It also noted that despite risk R2 on the Framework trending down due to a successful launch there is a bullet under the identified issues that covers landlord insolvency and ability to find an appropriate rescue partner. 

The Board noted the Q4 report and asked HS to provide an update on the queries around some casework.

Action: HS to provide an update on  the queries around some casework reported in the Q4 report.

Standards Commission Guidance

RH presented updated guidance from the Standards Commission on the model code of conduct that Board members abide to.  She highlighted the key changes and encouraged members to seek advice from her about their individual circumstances if needed. 

The Board noted that guidance. 

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

The Board noted an update on ongoing recruitment to the Board by Scottish Ministers. 

RH encouraged members to complete and return end of year review templates to her and GW.   

The Board considered and noted the agenda planner.  It welcomed that ALACHO,  Professor Ken Gibb and the Minister for Housing will attend as guests at forthcoming meetings during 2024.  The Board also welcomed a forthcoming joint workshop with all SHR staff in June 2024.  

The Board noted that after the summer it will seek to meet at SHR’s new offices at 220 High Street, Glasgow.  

The Board noted and thanked the staff observers for their feedback. 

The Board will hold a workshop with SHR staff on 19 June 2024

Briefings

Between the 28 May and 20 August  the Board received briefings covering:

• SHR publications and media update including:
  • Thematic review of social landlords’ annual assurance statement
  • Analysis of new homes, empty homes and lettings
  • National Panel research
  • Business Planning advisory guidance
  • Guide and videos for tenants and service users on how SHR regulates
  • Annual Assurance Statement Thematic
• SHR’s office move
• Transformation of Scottish Government HR and finance systems
• General Election guidance