​Scotland’s social housing regulator notes rise in sector borrowing

Available debt facilities in the Scottish social housing sector have risen to their highest ever level, the region’s regulator has announced.

In its annual report on the sector’s borrowing, the Scottish Housing Regulator noted that total debt facilities had risen to £7.2bn, of which £6.2bn had been drawn.

The regulator also noted a significant increase in new finance arranged during 2024/25. In all, 29 registered social landlords arranged new finance in the year, worth a total £563m. 

This was a notable increase on the £198m raised by 19 landlords in the year prior, though this had been the lowest level of new finance arranged in the previous five years.

The report said falling interest rates during the year had benefitted landlords with a greater proportion of debt outstanding on variable interest rate terms, compared to those with a greater proportion of fixed rate debt. 

It also said that the recent volatility in interest costs showed the importance of holding “sufficient liquidity to manage higher interest payments and operating costs during economic uncertainty”.

Shaun Keenan, assistant director of financial regulation, said: “Scotland’s RSLs have, in general, maintained sufficient liquidity to navigate a challenging operating environment shaped by a national housing emergency, inflationary pressures, and evolving demands on their resources.

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“Our latest report underscores the continued financial resilience of RSLs, which enables ongoing investment in both new and existing homes.”

Keenan noted that two new lenders, Social and Sustainable Capital and Pricoa Private Capital, had entered the market during the year, which came alongside “increased commitments from existing funders”. 

“This continued investment reflects strong confidence in RSLs and our regulatory framework,” he said.