Call for wholesale review of housing associations

SCOTLAND’S housing association sector should be subject to a wholesale review amid fears its independent regulator is failing in its statutory duties, the Conservative’s housing spokesman has warned.

SBHA chief Julia Mulloy also serves on another housing board. Picture: Contributed

Alex Johnstone said there is growing concern over how the Scottish Housing Regulator (SHR) allows social landlords to conduct investigations into themselves and appoint their own experts when faced with serious complaints.

The watchdog, which oversees the way 275,000 properties 
across the country are run, was established by parliament to safeguard the interests of tenants and assess governance issues at associations.

However, correspondence seen by The Scotsman shows that the governing bodies of registered social landlords are able to choose who joins their board to provide governance advice.

In one instance, the chief executive of an association at the centre of widespread criticism over its procedures and work culture is advising another association.

Mr Johnstone, a Tory MSP, said that while housing associations played a “hugely important role,” he was not convinced the regulatory system was “fit for purpose”.

He said: “The regulator appears to have no say in who is co-opted on to a housing association board which is experiencing difficulties, meaning that mistakes, instead of being rectified, could be made significantly worse.

“Tenants, housing associations and the Scottish Government must be confident the regulatory scheme in place has the competence and resources to get troubled organisations back on track. The only way to demonstrate this is to review the system.”

The questions surrounding SHR follow controversies over Scottish Borders Housing Association (SBHA), which has been condemned by MSPs over its failure to evict a tenant convicted of threatening the family of Dr Eamonn O’Neill, currently involved in litigation with the body.

A review is being conducted by SBHA itself into the issues, in a process housing minister Margaret Burgess said was to SHR’s satisfaction.

In the meantime, SBHA’s chief executive, Julia Mulloy, is serving as a co-opted board member of Loreburn Housing Association.

MSP Christine Grahame said she has been “stonewalled” by SHR in her efforts to find out what, if any, action it will take.

She said: “I’m extremely disappointed to find out that SHR in this case apparently can do nothing other than sit back and wait for the outcome of a report SBHA itself has carried out. All attempts to get any other information are being stonewalled.”

The regulator claims SBHA’s review involves “engagement” with Dr O’Neill, yet the academic said he has not been informed about the process, which he described as a “farcical attempt at a secret whitewash.”

In a statement, SHR said: “We protect the interests of tenants and others who use services provided by social landlords.

“We are open and transparent. We publish extensive information on how we regulate and publish regulation plans for individual landlords. We meet regularly with organisations and individuals interested in our work. We have already offered to meet with Ms Grahame.”

In a statement, SHR said “We protect the interests of tenants and others who use services provided by social landlords. Through effective regulation, last year we managed the successful rescue of three landlords in financial jeopardy.” “During that time we also worked with seven landlords facing governance and other problems. The landlords worked co-operatively with us to strengthen their governance, including through co-options to their governing bodies. These volunteer co-optees provided expert advice and support and an objective perspective to help the landlords improve. We also have statutory powers to appoint people to the governing bodies of landlords to ensure the proper management of a landlord’s financial or other affairs. “We are open and transparent. We publish extensive information on how we regulate and publish regulation plans for individual landlords. We meet regularly with organisations and individuals interested in our work. We have already offered to meet with Ms Grahame, and we have now extended an invitation to Mr Johnstone.”