Regulator takes control of failing landlord

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Poor management and financial problems leads to housing regulator appointing manager 

9th December 2014 by Robert Armour 0 Comments

A regulator has taken control of a Glasgow housing association after it found “serious weaknesses” with its governance.

The Scottish Housing Regulator (SHR) used statutory powers to parachute a manager into Easterhouse-based Wellhouse Housing Association – the first time it has taken this kind of action.  

Action had to be taken, said the regulator, to protect tenants’ interests after an independent investigation found serious concerns over the running of the association.

A regulation plan published by the regulator describes how it will work with Wellhouse to resolve these issues, over and above appointing a manager to ensure it complies with regulatory standards.

Christine Macleod, the SHR’s director of governance and performance, said: “We consider Wellhouse’s poor governance and financial management an immediate risk to tenants’ interests and to the hard-earned reputation of registered social landlords. 

“There were clear regulatory issues which required our intervention. 

“Our appointment of a manager is the most proportionate way we can ensure that Wellhouse has the support it needs to strengthen its governance and protect the interests of its tenants and service users.”

The association was formed in 1995 and is in charge of 1,100 rented social homes.

Since its formation it has built 400 new homes and is currently in the process of a building a new 50 home development for sale and rent in the Easterhouse area.

The Scottish Federation of Housing Associations was asked for comment but declined.