A major new report has concluded that England's largest housing associations need to urgently and drastically overhaul they way they are run if they are to successfully manage their ongoing growth.
In 2005, the Future Shape of the Sector Commission (FSSC) was set up to examine the implications of the rapid growth in the size of the country's largest housing associations - meaning those with more than 25,000 homes, of which there are nearly twenty associations.
There is currently unprecedented growth in the sector, which is having an important affect on the associations themselves, their residents and external stakeholders. The FSSC was sponsored by the L&Q Group and evidence was presented to Commissioners by more than 30 organisations, including large and medium-sized housing associations, government bodies, local authorities, trade bodies and industry consultants and advisors.
From this evidence is has been concluded that the largest associations will continue to get bigger through natural growth, mergers and acquisitions. However, they will need to fundamentally review their internal ways of working and their external relationships to manage this growth successfully, both from a customer service and business perspective, and maximise their ability to meet the Government's housing and social policy goals.
Other key findings of the FSSC are:
Less than 20 housing associations own more than a third of the sector's homes and control the majority of its financial capacity.
These associations have important natural advantages. For example, they have the ability to:
They must make full use of these advantages to fully benefit customers, local partners and the Government.
Large associations must continue to improve their financial efficiency and cost effectiveness, so that they can build up surpluses that can be ploughed back into communities. The Government must recognise and accept the need for and value of surpluses in helping it achieve its social policy objectives.
Large associations need to simplify their governance and operational structures and make them adaptable and dynamic as circumstances change.
They also need more flexible and dynamic structures at local, grass-root level. A wider range of customer needs to get involved with this to improve services and drive up customer satisfaction.
Robert Appleyard, Chairman of the FSSC and former Group Chairman of the L&Q Group, said: "There is a real difference between managing an organisation of 30,000 homes and managing one of 50,000 homes. In France and Holland, associations of 70,000 to 100,000 already exist and we think that time will come shortly in England too.
"There is a responsibility on the very large housing associations to consider with some urgency how we should change the way we operate in this new world. Our homes represent the core of many thousands of people's lives and our decisions affect their wellbeing and quality of life.
"This Commission is not an attempt to say 'big is beautiful' or 'the future is ours.' Smaller and more specialist housing associations will definitely maintain a key role in the future, and the diversity of the sector is a valuable strength. At the same time, we are certainly asking 'How can big be beautiful?' and trying to plot a route to that objective."
The findings of the Commission have been published in a special report, Growing Up - Questions and Challenges to Promote Successful Housing Association Growth. For a copy of the full report or the summary document, please visit the Commission's website at www.growing-up.org.uk.
Places for People warned that new government guidelines to improve the environmental performance of new-build homes must be applied to all existing housing if the industry is to tackle the looming threat posed by climate change. The UK's largest housing and regeneration group, which is responsible for nearly 60,000 homes and is piloting a range of renewable technologies in developments across the UK, welcomed the new guidelines but said that clear mandatory targets are needed for all types of housing.
Nicholas Doyle, project director for sustainability at Places for People said: "This is a massive step in the right direction and will help planners and the housing sector rethink the way they design low carbon sustainable homes and communities.
"Designing environmentally friendly homes is one of the biggest challenges currently faced by developers and planners with the average home emitting more than a quarter of all carbon emissions. Yet if we are serious about tackling the threats and challenges posed by climate change, the Government should extend its guidance and set targets for existing housing."
The Housing Corporation published a summary of the final report of the statutory inquiry into the affairs of ARHAG Housing Association, in accordance with Paragraph 20 (7) of the Housing Act 1996. The publication includes a statement on the background to the inquiry, the findings and conclusions of the inquirers, and explains the actions taken by the Corporation's Board following its consideration of the final report.
On 8 August 2006, The Corporation's Board decided that there had been misconduct in the affairs of the Association and that ARHAG's Chief Executive, Finance Manager and two board members had been responsible for that misconduct. Following the statutory period of notice, orders for the removal of the Chief Executive and Finance Manager were issued on 30 August 2006. The two Board Members resigned prior to that date.
The Corporation's Board noted there were a number of concerns around governance, management and control, which needed to be resolved within ARHAG. It acknowledged the work commenced by the recently appointed Chair, the three statutory appointees to the board and the interim Chief Executive, to address those concerns. The Board advised ARHAG that it would be monitoring progress on its action plan closely over the next 12 months.
Notting Hill Housing Group launched its first specific development training programme for university graduates. Javier Echavarri, who graduated earlier this year with a BA Hons in Architectural Technology Interiors from Southampton Solent University, beat hundreds of applicants and has been appointed as a Trainee Land Buyer. Over the next two years he will develop a wide range of skills and experiences relevant to the job and experience regular secondments to other areas of the organisation to ensure he gains a comprehensive overview of how a housing association works.
Jane Cranitch, Development Director at Notting Hill, said: "Despite housing development being a booming area, there is a serious lack of skilled people entering the development sector. We decided to grow our own talent in-house by recruiting trainees with a construction-related degree."
The new training programme attracted applications from hundreds of graduates across the country. Ocean Edge Resource Management worked on behalf of Notting Hill at universities to raise the profile of social housing and promote the range of exciting careers and opportunities available in the sector to graduates.
Great Places Housing Group was voted Housing Association Regenerator of the year at the prestigious Regeneration Awards in London for the second time. The Group first claimed the accolade in 2004 and was short-listed last year. This time, it also scooped the title of Best Partnership of the year for its work at New Islington, Manchester's Millennium Community.
The Group is based in Manchester and has some 8,000 homes. It is known for tackling some of the most troubled and run-down areas around. Great Places is proving that neighbourhoods written off by many can be revived with the right projects and investment. It worked with Urban Splash, architects FAT and residents of the Cardroom estate in Ancoats to create its Islington Square development of striking Dutch-inspired houses, let by Manchester Methodist Housing Association. The second phase of the project sees a re-invention of the traditional terrace. It is thought to be the first UK social housing to feature grassed roofs and is due to be finished in early 2007.
Before redevelopment at New Islington began, the Cardroom estate had gained a reputation as Manchester's very worst place to live - a place where taxi drivers would not venture. Now it is fast being recognised as one of the better places in the city.
Highlights of the Great Places portfolio presented to award judges included:
A project to build 50 new homes with Urban Splash in Salford, to help first-time buyers and key workers onto the housing ladder.
Creation of new houses in Burnley and Nelson, while preserving and revamping traditional terrace house heritage.
A plan to transform the landmark grade II listed Park Hill high-rise block in Sheffield, with Urban Splash.
Representatives from Whitefriars Housing Group met Cabinet Minister Ruth Kelly to sign-up to the new Respect Standard for Housing Management, which aims to improve the lives of residents by cracking down on problems.
As one of the first housing associations in the country to sign up to the standard, Whitefriars has promised to do all that it reasonably can to tackle anti-social behaviour. This includes measures to prevent anti-social behaviour, provide specialist services for victims and witnesses, and protect communities through swift enforcement.
It has also promised to continue its work on long-term solutions to anti-social behaviour, by addressing its causes, such as family breakdowns, drug misuse, and lack of parenting skills.
A money advice project in Edinburgh will address financial issues faced by tenants of five housing associations with support from Communities Scotland. Three money advice workers are being employed to give housing association tenants advice on benefits, debt, energy efficiency and energy bills and the services of credit unions and other banking services. The aim of the project, which is being supported with funding of over £130,000 from Communities Scotland, is to help reduce rent arrears and debt due to consumer credit or household bills.
One particular aim is to reduce the use of doorstep lenders and 'loan sharks' and make tenants aware of the advantages of credit unions or bank accounts and insurance services that may be tailored to their needs.
It is anticipated that at least 300 tenants will be able to take advantage of the service to improve their financial standing.
Castle Rock Edinvar Housing Association is working in partnership with Dunedin Canmore Housing Association, Margaret Blackwood Housing Association, Hillcrest Housing Association and Port of Leith Housing Association and two citizens advice bureauxs to offer the service to tenants.
The money advice workers will be employed and supervised by Edinburgh Central and Leith Citizens Advice Bureaux and their wider advice services.
