Regulator highlights role of ‘dominant individuals’ in social landlords’ governance issues

Ms MacGregor said this comes back to governance both from executive teams and from the board.

“I think the board’s role in... seeking and gaining assurance across the spectrum of things that can go wrong is just utterly vital,” she added.

“I say governance and it’s not just a... trite response, it really, really matters. And I think that dominance of individuals can lead to things, and it’s not very often, but it can lead to things like pet projects that aren’t necessarily core business.”

These can cause issues if landlords do not let go of them soon enough and they start to go wrong, “and you’re throwing good money after bad”.

Other common problems she has seen include some landlords not keeping tenants safe on a fundamental level and going bust, and others ignoring trends and covenants or not holding finance teams to account.

“[If] you don’t even know how risk flows in the business, it’s just too complex, and you can’t see what’s going to bring you down,” Ms MacGregor said.

“It’s a combination of over-dominance and/or complexity, and/or not sticking to the core business or getting too carried away with flashy things that are great if they work but stop if they don’t.”

Ms MacGregor is stepping down from the RSH at the end of next month after 11 years overseeing its work. She became chief executive after the regulator became a standalone body in 2018.

Last autumn, delegates heard the regulator is planning an external review to assess the impact of its new regime on landlords.