In an updated engagement plan published this week, SHR said Milnbank now meets regulatory requirements, including the standards of governance and financial management.

The regulator plan said: “We engaged with Milnbank about its approach to financial planning, asset management, compliance with regulatory guidance on notifiable events and its handling of payments and benefits issues. Whilst our inquiries were ongoing, we moved Milnbank’s regulatory status to ‘under review’. We have now completed our review of Milnbank’s regulatory status and Milnbank has provided us with sufficient assurance about its compliance with the regulatory standards.

“Our judgement is that Milnbank is therefore compliant with regulatory requirements and the regulatory standards.”

SHR has also been engaging with Milnbank regarding its approach to consulting tenants about its rent increase. It said Milnbank is taking forward plans to improve its approach to rent increase consultation and SHR will engage with Milnbank to “seek assurance that tenants are provided with clear information on future proposed rent increases”.

Milnbank is considering developing new homes for social rent. If Milnbank decides to proceed with its development plans, it has confirmed it will provide the regulator with assurance about the impact of the development on its financial position.

Paul Martin, chief executive officer at Milnbank Housing Association, told Scottish Housing News: “We are pleased that the management committee and staff have been able to provide the Scottish Housing Regulator with the reassurance required, resulting in our status being updated to compliant. Milnbank Housing Association remain committed to delivering good outcomes and services for our tenants and service users.”