However, overall liquidity in the sector remains robust. These are the main findings of a new report published today by the Scottish Housing Regulator.

The report is the regulator’s annual analysis of RSL loan portfolio returns for the period April 2023 to March 2024.

It highlights that 19 RSLs arranged new finance during 2023/24, totalling £198 million, bringing the total agreed borrowing facilities in Scottish RSLs to £6.84 billion. RSLs also plan to increase their borrowing by £1.5bn over the next five years.

Shaun Keenan, assistant director of financial regulation, said: “RSLs in general have maintained sufficient liquidity to manage the effects of increased interest payments and operating costs during recent years, even with interest rates reaching a 15 year high.

“Despite the material rise in the cost of debt and the ongoing changes in the financial markets, RSLs intend to borrow an additional £1.5 billion over the course of the next five years.

“It is therefore crucial that RSLs continue to ensure that they have access to the right skills and resources to ensure that the financial products supporting their operations are the best fit for the RSL. It is also important that RSLs maintain the confidence of current and potential lenders and investors.

“When RSLs show indications of low liquidity we will engage with them.”

You can read the regulator’s report on its annual analysis of RSL loan portfolio returns 2024 on its website www.housingregualtor.gov.scot.