Bill to ensure registered social landlords are deemed private bodies to be introduced

By ensuring registered social landlords (RSLs) can be classified as private bodies, the bill will mean that RSLs can borrow money privately.

The announcement follows today’s decision by the Office for National Statistics (ONS) to classify RSLs as public bodies in the national accounts. The ONS came to this decision in light of a number of powers that the Scottish Housing Regulator can exercise over RSLs. The ONS came to the same decision in regard to England’s RSLs last year and similar legislation was introduced at Westminster.

Commenting on this decision, housing minister Kevin Stewart said: “The First Minister made clear in Programme for Government that we are committed to RSLs remaining classified as private bodies in the national accounts. In light of today’s announcement by the ONS, the government will bring forward a bill to adjust the powers of the Scottish Housing Regulator. This will allow the ONS to reclassify RSLs to the private sector

“Reclassifying RSLs to the private sector is important as it will ensure their borrowing continues to be treated as private borrowing, which can be used to augment the £3 billion of public investment that the government is providing to support the delivery of 50,000 new affordable homes in the next five years.

“I am pleased that the Scottish government has reached an agreement with the HM Treasury that will allow progress in delivering this programme to continue whilst the position on classification is being resolved.”

The Scottish government has discussed its plans to legislate with the regulator, and bodies representing RSLs, their tenants and lenders, and confirmed that it would continue discussions with them during the development of the bill.