The Scottish Housing Regulator has today written to all RSLs to underline the importance of compliance with Regulatory Standards in the context of the uncertainty around the planned withdrawal of the United Kingdom from the European Union.
The Regulator’s letter highlights Regulatory Standard 3 which requires each RSL to manage its resources to ensure financial well-being and to base financial forecasts on appropriate and reasonable assumptions.
Ian Brennan, Director of Regulation, said:
“Late last year the Bank of England set out a range of scenarios to illustrate the possible impact upon key economic variables of withdrawal from the European Union. Some of these scenarios indicate the potential for key variables such as the rate of inflation and interest rates to show greater volatility than they have in the recent past.
Each RSL, when monitoring and assessing its present and future compliance with Regulatory Standard 3, should take account of this potential for greater volatility in the assumptions that underpin financial forecasts, sensitivity analysis, scenario planning and business planning.
Where an RSL identifies a serious risk to its stability or viability in the course of its business planning it should inform us in accordance with our guidance on Notifiable Events.”
The Regulator’s letter to landlords is available here.
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.
0141 242 5574