Housing Associations Reclassified As Public Sector

English housing associations are part of the public sector for the purposes of national accounts, an Office for National Statistics review has concluded. The reclassification means that housing association debt will be counted as public borrowing, pushing £60bn on to the government’s balance sheet. The decision does not in itself lead to a material change in the way housing associations operate, but it will spark fears that the government would seek to limit or control their borrowing. The ONS review looked at changes introduced over recent years, including the Housing and Regeneration Act 2008 but not recent government policies – including the rent cut, Pay to Stay and the Right to Buy – as they are yet to come into force. Experts have suggested reclassification would remove a potential barrier to the government nationalising associations. Download the report from the ONS website.