Regulator shares best practice for landlords developing new homes
A new report which sets out ten principles of positive practice for social landlords considering developing new homes has been published by the Scottish Housing Regulator.
The Regulator said that applying the principles in the thematic inquiry report will help landlords manage and mitigate risk, achieve value for money for tenants and meet Regulatory Standards.
The ten principles cover the importance of a landlord being clear about why it is developing new homes in the first place and how this fits within its overall business strategy. The principles also cover risk, capacity, procurement and funding as well as governance.
Ian Brennan, director of regulation, finance and risk, said: “The Scottish Government has committed to deliver 50,000 affordable homes over the life of the current parliament. Good governance and awareness of risk and its potential impact on the business are essential for landlords that are developing new affordable homes.
“Our report highlights positive practice from social landlords who have recently been successfully developing new homes. We believe that applying the ten principles will help landlords develop sustainable homes and deliver on the Scottish Government’s targets.”
The Regulator’s report has been welcomed by stakeholders including Mary Taylor, SFHA chief executive, who said: “The report provides a useful guide to the issues that housing associations need to consider when either considering developing again or looking to expand their development programmes.”
John Marr, Scotland senior policy advisor at the Council of Mortgage Lenders, added: “This comprehensive guidance is a welcome addition to the tools and resources available to help boards strengthen their response to development risks, as they prepare to step up to the mark in delivering the government’s 50,000 homes target.”
Colin Culross, director of development and asset management at Link Group, which took part in the thematic inquiry, said: “There’s one thing certain about development and that’s its uncertainty. This is a very well-constructed and informative document which outlines the guiding principles for RSLs - whether they be experienced in developing new homes or re-entering the affordable housing supply marketplace.”
The Regulator’s report is available here.