Housing Associations Reclassified As Private Organisations By The ONS

The Secretary of State has confirmed that the Office of National Statistics (ONS) is formally reclassifying housing associations as private organisations. The change follows deregulatory measures in the Housing and Planning Act that aimed to address ONS concerns about the level of government involvement in the housing association sector. This is a welcome recognition of housing associations as independent social businesses with a shared purpose of building quality homes that everyone can afford. It reinforces the independence of boards and will allow us to secure the long-term finance needed to build more homes, delivering our ambition to drive up supply. Read more on the NHF website.

Right To Buy Extension To Companies Could Reduce Affordable Development

Councils could reassess plans to build affordable rented homes through housing companies after the government said the Right to Buy should apply to these homes. The government’s Housing White Paper said where a council has placed a tenant in an affordable rented home they should have the right to buy this property. Inside Housing understands the government has not decided the legal mechanism it could use to compel councils to sell company-owned homes through Right to Buy. These companies are registered as private businesses, and sit off the council and national balance sheet as a result. 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.