5. To ask the Scottish Government what its position is on whether housing associations should remain independent where possible, rather than being subsumed by larger organisations. (S6O-01920)

The Scottish Government values the diversity of the housing association sector in Scotland, which is one of its strengths. If a housing association decides that it is in the best interests of its tenants to transfer to another association, that is a matter for the independent governing body to consider.

An association must also consult its tenants about its proposal to pursue a transfer to another registered social landlord, and any transfer will not proceed unless it is supported by tenants in an independent ballot. Therefore, tenants will have the final say.

I recently met the management of Reidvale Housing Association in my Constituency, which the Cabinet secretary might have heard of. It is one of the best-known housing associations in Scotland as a result of protecting the area when it was threatened with demolition some years ago.

The problem is that the housing association’s rents were too low, so it has not built up reserves for maintenance. However, it has little or no debt, and there seems to be no need for a transfer of engagements, but it could be attractive to a larger organisation to strengthen its balance sheets.

Can the cabinet secretary confirm that the management and the Scottish Housing Regulator should encourage tenants of the association that it should stand alone if that is financially sustainable?

Ultimately, that is a matter for Reidvale Housing Association to make a judgement on, in consultation with its tenants. The regulator has been engaging with Reidvale about some serious weaknesses in its compliance with regulatory requirements, some of which John Mason identified in his question.

Reidvale carried out an independent review to consider how it can best address those weaknesses and deliver services for its tenants. It will consult with its tenants and, if they are in favour of a transfer being taken forward to the next stage, a business case and a tenant ballot will follow.

The regulator continues to seek assurance that the interests of Reidvale’s tenants are protected. I emphasise again that it is the tenants who will have the final say.

Being able to provide mid-market rent sustainably is crucial to meeting affordable housing targets. Will the Scottish Government commit to have mid-market rents that registered social landlords or their subsidiaries provide redesignated so that they come under social rent regulations instead of private rent regulations?

There are good reasons why the position is what it is. Miles Briggs will understand the required criteria with regard to funding social housing and mid-market rent; I am keen to see an expansion of both. We will continue to consider whether there are things that we can do to encourage that work and to make it easier.

We have our commitment to make available £3.5 billion in this parliamentary session for the delivery of more affordable and social homes. We want to grow that pot, working with partners in local authorities, registered social landlords and others.