Housing association not yet fit to govern its own affairs after serious financial failings

Scotland’s housing regulator will continue to oversee governance of Muirhouse Housing Association following “serious and urgent risks” to its finances.

The Scottish Housing Regulator (SHR) stepped in last December using statutory powers to appoint a manager and three members to the association’s board following concerns about its governace.

Now, the body has announced these powers were to be extended for the next six months.

Since December, Muirhouse has taken steps to address the immediate risks it faced and is now developing plans to strengthen its governance and financial management to address the serious weaknesses it faces, the regulator said.

Ian Brennan, SHR’s director of finance and risk, said: “The action taken has dealt with the immediate issues which led to the statutory appointments being made in December 2014.

“During the next six months, the manager and appointees to the governing body will work with Muirhouse to help it address the underlying causes so that it is able to comply with our regulatory standards of governance and financial management.”