Convener's Report AGM 2024

The external economic climate continues to pose significant challenges for organisations like Loreburn. With rising interest rates affecting borrowing costs and the ongoing cost of living crisis impacting both tenants and staff, these pressures remain a focal point for the Executive Team and Management Committee. Although inflation has slightly decreased, the construction sector still faces substantial cost increases, which has had a direct effect on Loreburn’s projects and broader operations. 

A new government and shifting political landscape bring potential changes to housing policy, with signals pointing to a stronger focus on affordable housing. However, it remains to be seen whether this will translate into additional grant funding and how the sector will be supported over the medium term.   Scotland’s Finance Secretary Shona Robison has made clear that capital expenditure cuts are inevitable, making grant funding from government unlikely in the short to medium term. 

The 3 year Tenant Satisfaction Survey showed a significant decline in scores, which the Management Committee has taken seriously. This feedback has already been reflected in our forward strategy, ensuring a greater focus on meeting tenant needs.  

A rent increase of 7.5% was driven by cost pressures and direct feedback from tenants, who expressed a strong desire for further investment in their homes and the direct services we provide. 

Loreburn’s financial position remains challenging.  Last year we focused on consolidating our cash position, leaving little headroom for additional borrowing.  While we have successfully completed developments such as Woodlands, Lochmaben and expect The Garrick to be handed over this calendar year, there will be no further development in the short term. The strategic decision to pause development activities also required selling land previously earmarked for future projects. This has allowed us to focus on maintaining and improving our current stock. 

Despite these challenges, LHA continues to deliver strong performance, particularly in in house repairs services such as emergency repairs and ‘Right First Time’ repairs, which remain excellent. We have also introduced innovative HR policies that have reduced pressure on staff turnover and continued to build a healthy workplace culture, which has helped to retain staff and decrease turnover.   

Following a period of leadership instability, the Executive Team has now had 12 months of consistency, bringing renewed confidence to the organisation.  Our new corporate plan is firmly focused on investing in existing stock and being tenant driven in all we do. This inward focus ensures we remain financially strong while taking a measured, risk-based approach. 

We have listened to the feedback from our satisfaction survey, and this will guide our actions moving forward. Our primary focus continues to be on what matters most to our tenants—providing high quality homes and delivering excellent services and support for our tenants. While current economic conditions limit our ability to develop, we are committed to being transparent about these realities. In the medium term, we aspire to return to being a developing organisation. 

Lastly, I would like to extend my gratitude to the Executive Team for their continued dedication and performance. I would also like to thank Russell Brown, former Convener for his nine years of exemplary service to Loreburn, as well as tenant member Ellie, for her valuable contributions to the Management Committee.