‘A Lot Of Housing Associations’ Now Looking At For-Profit RP Model

A number of housing associations are exploring launching their own for-profit registered providers to help fund development. The Housing and Regeneration Act 2008 allowed such bodies to register with the Regulator of Social Housing for the first time, and 53 have done so in the past decade, many of them developer subsidiaries or backed by equity firms. Read more on the Social Housing website.

Social Housing - News - ‘A lot of housing associations’ now looking at for-profit RP model

Social Housing Regulator To Charge Fees From October 2017

The regulator of social housing will delay the introduction of fees for regulation to October 2017. Providers will pay 50% of the annual fee for 2017 to 2018. The regulator was granted powers to charge fees under the Housing and Regeneration Act 2008. It set out initial proposals in a discussion paper in 2014 and held a further statutory consultation at the end of 2016. Following the outcome of the consultation, the regulator will introduce:

·         a one-off flat-rate registration fee of £2,500 for successful registration with the regulator

·         a fixed annual fee of £300 for providers with fewer than 1,000 social housing units

·         an annual per unit fee of £4.72 for large providers with 1,000 or more social housing units – with the fee charged at group level rather than for each individual entity on the register.

Read more on the HCA website.

Affordable Housing – Parliamentary Written Answer

Baroness Byford: To ask Her Majesty’s Government whether they will take steps to ensure that new houses designated as affordable cannot be altered or extended in ways which remove them from that classification.

Lord Bourne of Aberystwyth: The Housing Act 1996 and the Housing and Regeneration Act 2008 require that new affordable homes delivered through the provision of Government Grant must remain affordable in perpetuity. Where a grant funded property is sold or undergoes a change of use, for example, from affordable housing to private rent or sale, the grant element used to build the property is then recycled for the delivery of further new affordable homes or returned to the Government. This ensures that the number of properties available through our Affordable Housing Programmes remains at a consistent level.

HCA Launches Social Housing Regulation Fees Consultation

The consultation, which would see £5 per unit charged to all registered providers with 1,000 or more units of social housing, follows a discussion paper in 2014 setting out initial proposals and the 2015 Spending Review. Charging fees would enable the regulator to ensure it maintains the capacity and capability to promote a viable, efficient and well-governed social housing sector able to deliver homes that meet a range of needs. The proposed fees scheme would be in line with the regulator’s powers under the Housing and Regeneration Act 2008 and its statutory objectives. Following consultation, the principles will have to be approved by the Secretary of State. Find details of the Consultation on the GovUK website.

Landlord Licensing Scheme Rejected By Secretary Of State

The government has barred a London council from introducing a borough-wide licensing scheme for private landlords. Communities Secretary Greg Clark has turned down Redbridge Council’s application to bring in a borough-wide licensing scheme to tackle poor landlords and anti-social behaviour. The minister declined the application because it did not provide evidence of significant and persistent anti-social behaviour across the borough as a whole, as required under the Housing Act 2008. Redbridge’s scheme, which was consulted on last November, would have required all private landlords in the borough to pay £500 for a five-year license. The council is now considering whether to consult on a smaller scheme. Read more on the East London Guardian website.

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.

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.

Affordable Housing – Parliamentary Written Answer

Dan Jarvis: To ask the Secretary of State for Communities and Local Government, how his Department defines what constitutes affordable housing.

Brandon Lewis: The Housing and Regeneration Act 2008 (sections 68 – 70) defines social housing as low cost rental accommodation and low cost home ownership accommodation. In the Act, a low cost rent is simply defined as below the market rate. Low cost home ownership is defined by its availability for occupation on a shared ownership or equity percentage basis. This provides flexibility to support a range of people with different housing needs through our affordable housing programmes. Read more on the Parliament website.

Landlords Free To Sell Empty Properties

Social landlords will no longer have to get permission to sell individual empty properties under new guidance.  The Homes and Communities Agency has changed its consent rules to allow associations permission for a ‘policy’ or ‘programme’ of vacant disposals. This means the HCA can give permission for a landlord to sell properties of a particular type, size or other criteria without having to get permission for the sale of each one individually. The legislative power to alter the guidance, through the Housing and Regeneration Act 2008, has existed since April 2010, but until now has not been used.  The HCA argued the change will increase flexibility and reduce administration costs for landlords. The change only applies to non-profit providers.  Download a copy of the guidance from the HCA website.