On 18 February, housing leaders came together for Housemark Scotland’s Leadership Forum to discuss the pressing financial, regulatory, and economic challenges facing the country.

The event allowed expert speakers and sector leaders to explore the financial resilience of RSLs and local authorities, the impact of rent controls, and the challenges of delivering new homes and meeting net zero targets. 

Speakers included: 

  • William Dowson, Scottish Agent, Bank of England 
  • Shaun Keenan, Assistant Director of Regulation, Scottish Housing Regulator 

Discussions explored the financial risks facing the sector, the challenges of balancing rising costs with affordability, and the policy uncertainty shaping the future of social housing. Highlights include: 

1. Financial pressures are mounting 

RSLs are under increasing financial strain as maintenance, compliance, and net zero requirements drive up costs. Maintenance spending has reached record levels, yet inflation means landlords are getting less for their money. Meanwhile, rent constraints are limiting income growth, creating difficult decisions for housing providers as they seek to balance affordability with investment in homes and services. 

2. The housing supply challenge 

RSLs are planning 13 per cent fewer new homes than last year, reflecting rising construction costs, funding shortfalls, and financial uncertainty. While the Scottish Government remains committed to its 110,000-home target, development is slowing as providers scale back building plans. With grant funding uncertain and borrowing costs rising, RSLs are looking at new funding models and partnerships with private developers to support housing delivery. 

3. A call for a sector-specific inflation index 

Speakers discussed the challenges of using CPI or RPI as a benchmark for rent setting, as these measures do not fully reflect the cost pressures facing social landlords. The idea of a housing-specific inflation index was raised to help providers make better-informed financial decisions, particularly in discussions with tenants and boards about rent levels. 

4. Net zero and affordability remain a challenge 

Many RSLs have not factored full net zero costs into their financial planning, with some waiting for clarity on funding and government policy. With some retrofit costs reaching £140,000 per home, landlords are concerned that affordability and financial constraints will make large-scale decarbonisation difficult to achieve without substantial government support. 

5. The impact of rent controls on investment 

Concerns were raised over the impact of rent control policies on mid-market rent properties, with landlords questioning whether such schemes will remain financially viable. Uncertainty around how rent controls will be applied is making it harder for providers to plan, and some RSLs are reconsidering their involvement in mid-market rent developments altogether. 

Moving forward 

Housemark Scotland’s Leadership Forum reinforced the urgent need for collaboration, innovation, and policy clarity to ensure RSLs can continue to provide high-quality, affordable housing while meeting financial and regulatory challenges. As financial pressures grow, securing long-term investment, improving financial planning, and balancing affordability with sustainability will be key priorities for Scotland’s social landlords.