Association Quits NHF Over RTB Deal

A housing association has opted to leave the National Housing Federation (NHF), claiming it has lost trust in the body following the vote in favour of the voluntary extension of the Right to Buy.  Westfield Housing Association recently voted in favour of not renewing its membership. Westfield said smaller associations had become “marginalised” in the run-up to the vote in October, claiming they were not given the advance warning of the voluntary deal received by larger landlords. The association claimed the NHF agreement with government on a voluntary extension showed it had bowed to pressure from its larger members, after opposing the plan to extend Right to Buy. It also accused NHF chief executive David Orr of “cranking up” the threat of associations being re-classified as public bodies by the Office for National Statistics, and potentially losing independence, if the voluntary deal was not approved. Read the full statement on the Westfield website.

Freedom of Information: Housing Associations – Parliamentary Written Answer

Mr Stewart Jackson:  To ask the Minister for the Cabinet Office, whether reclassification by the Office of National Statistics of housing associations as public entities will entail their carrying the legislative obligations contained in the Freedom of Information Act 2000; and if he will make a statement.

Matthew Hancock: Registered providers of social housing will not automatically become subject to the Freedom of Information Act as a result of their reclassification.

Housing Associations: Public Sector – Parliamentary Written Answer

Stephen Timms: To ask the Secretary of State for Communities and Local Government, what assessment he has made of the likely effect on house building of the Office of National Statistics reclassifying housing associations as public sector bodies. 

Brandon Lewis: The Office of National Statistics has concluded that housing associations should have been classified as public rather than private since 2008, due to several of the regulatory requirements imposed by the Housing and Regeneration Act 2008 introduced by the last Labour Government. This decision is purely a statistical change. Reclassification makes no material changes to the operation of housing associations. The Government is committed to developing deregulatory measures to help housing associations build more homes and help more people into home ownership.

Housing Associations: Written Statement

The Office for National Statistics (ONS) has altered, with retrospective effect, how private registered providers of social housing (commonly known as housing associations) are treated in the National Accounts. ONS has concluded that housing associations should have been classified as public rather than private since 2008, due to several of the regulatory requirements imposed by the Housing and Regeneration Act 2008 introduced by the previous Government. ONS will now apply this change retrospectively back to 2008. This is purely a statistical change. Reclassification makes no material changes to the operation of housing associations, does not nationalise housing associations and the Government have no plans to impose new controls on the sector – including over spending or borrowing. Housing associations will continue to be able to access those existing Government programmes that have been open to them. Read the full statement on the Parliament website.

'Regulator's RTB Powers May Need Reviewing After ONS Decision'

The government may need to “look again” at the regulator’s proposed powers over Right to Buy to ensure housing associations do not remain public bodies, David Orr has said. This would be to ensure housing associations can escape their public sector reclassification.  He said the powers included in the Housing and Planning Bill would now need to be “looked at very closely”. It follows the ONS decision to reclassify housing associations as part of the public sector, based on regulatory changes introduced in 2008. Mr Orr said he was confident the issues raised by the ONS, particularly the regulator’s power to consent to sales, “would go” in the bill. However, he added that the introduction of a new regulatory standard for home ownership introduced to help enforce the Right to Buy extension would also have to be analysed. Read more on Inside Housing.

CLG Pledges Measures To Overturn ONS Decision

The government has pledged to deregulate housing associations in order to allow them to become private bodies again “as soon as possible”. The CLG responded to the ONS decision to reclassify associations as public bodies by stating it is committed to “ensuring associations continue to be recognised as independent organisations”. The ONS decision means that associations’ £60bn of debt will be pushed onto the public balance sheet. A CLG spokesperson said: “This matter relates to an historical legislative change, made by a previous government, which came into effect over eight years ago and makes no difference at all to the way housing associations run themselves and imposes no new controls or rules. We will bring forward measures that seek to allow housing associations to become private sector bodies again as soon as possible.” Read more on Inside Housing.

Think Tank Issues Association Privatisation Warning

Privatising housing associations would be “the most obvious” government reaction to £60bn of debt being added to the national balance sheet, an influential think tank has warned. Chris Walker, head of housing and planning at Policy Exchange, said nationalisation of housing associations followed by a state sell-off into the private sector could become “a serious option” if the Office for National Statistics (ONS) decides to reclassify housing associations as public bodies. Mr Walker said: “The government does not want to be in a position where it is keeping that debt on its balance sheet. If it is relaxed, it must feel it has got potential to move that money off the balance sheet, which suggests it has got a plan.” Read more on Inside Housing.

ONS Housing Association Status Review Underway

The Office for National Statistics has started a review of whether housing associations should be reclassified as public bodies – a decision which threatens to add £60bn to the national debt.  Most housing associations are currently classified as private corporations, meaning their combined £60bn of borrowing is not reflected on the national balance sheet. But an Office for National Statistics spokesperson has confirmed that a review of this classification is underway – with further detail and a completion date to be published at the end of September. It follows Prime Minister David Cameron describing housing associations as “part of the public sector” in Parliament. Read more on Inside Housing.