Lenders and investors continue to invest in social housing, says Regulator

12 December 2018

A continuing appetite by lenders and investors to invest in social housing in Scotland is the main finding of a report published today by the Scottish Housing Regulator.

The report is a summary of the Regulator’s annual analysis of RSLs’ annual loan portfolio returns, which set out their borrowing and funding arrangements. It shows that funds available to RSLs saw the highest increase in 10 years, topping £5 billion for the first time.

Shaun Keenan, Assistant Director of Financial Regulation said:

“RSLs need access to funds at competitive rates to be able to invest in the homes and services they provide for their tenants and service users. So continued lender and investor confidence is good news.

“Nearly half of all new investment came from capital markets including two major new investors - HSBC, and BlackRock, the world’s largest fund manager. “As RSLs work to contribute to the Scottish Government’s target to deliver 50,000 new homes by 2021, lender confidence will remain crucial.

“We know that well-performing, financially healthy RSLs attract funders and our regulation, together with their own due diligence, brings important assurance for lenders and investors. We will continue to work to provide assurance through regulation and to support landlords in building a strong culture of assurance in their own organisations.”

Read the Summary of the Annual Loan Portfolio Returns at 31 March 2018

Read the detailed technical appendix

Notes to editors: 
  1. The Scottish Housing Regulator was established on 1 April 2011 under the Housing (Scotland) Act 2010. Its objective is to safeguard and promote the interests of tenants and others who use local authority and RSL housing services. The Regulator operates independently of Scottish Ministers and is accountable directly to the Scottish Parliament. It assumed its full regulatory responsibilities on 1 April 2012.The Regulator consists of the Chair and seven Board members. More information about the Regulator can be found on its website at www.scottishhousingregulator.gov.uk
  2. SHR regulates around 160 registered social landlords and the housing activities of 32 local authorities.
  3. SHR sets out how it regulates social landlords in its published framework – Regulation of Social Housing in Scotland.

 

Contact:

Tracy Davren

Communications Manager

0141 242 5574

Tracy.Davren@scottishhousingregulator.gsi.gov.uk