Blackwood provides over 1,700 homes across Scotland for those who are disabled or are in need of social housing.

The SHR began engaging with the housing association in July 2023 after it informed it was carrying out a strategic review, following the transfer of engagements from Abbeyfield Scotland.

Abbeyfield, which has 14 homes and over 106 tenants, voted to join Blackwood in 2022.

The 2023 review highlighted key financial risks for Blackwood, including that it was at risk of breaching its loan covenants.

Since then, Blackwood’s management has found that it is exposed to “immediate financial risks” which it is working to address.

This has seen the housing association withdraw planning development programmes due to an inability to access lending, and even dispose of some properties.

The SHR put Blackwood’s regulatory status under review and has since found it is non-compliant. In its own review, the regulator found evidence of “material weaknesses” in the financial management of Blackwood and a lack of speed in identifying such risks.

As such, the SHR has ordered Blackwood to put in place a “comprehensive business plan” to set strategic objectives, carry out an independent review of its compliance and to regularly update the regulator about its progress.

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The SHR is continuing to review Blackwood’s progress and will “engage as necessary”.

Simon Fitzpatrick, CEO at Blackwood Homes and Care, said: "Having contacted the Scottish Housing Regulator pro-actively after identifying potential partial or non-compliance with the standards, we accept their decision to change our regulatory status.

“Our approach in highlighting these challenges to the regulator, many of which are sector wide, demonstrates our commitment to delivering good governance.  We are working constructively with the regulator in an open and transparent manner, in line with our values.

He continued, “good progress has already been made in improving historical business planning practice, and we continue to improve our long-term financial stability, against a backdrop of unprecedented sector-wide challenges for both housing and care.

"Our customers are central to everything we do. We want to reassure all of them that this will not affect the quality of our services or our ongoing commitments to them. 

"Looking ahead, Blackwood remains committed to our vision of helping people live their lives to the full. We have a clear pathway to return to full compliance, and with the support of our dedicated staff and board members, we are confident this process will be a positive one and help us be an even better provider of housing and care services."