A new report by the Chartered Institute of Housing (CIH) and Savills - Appreciating Assets - explores the potential impact of housing associations using greater freedom to manage their assets on their own terms, based on an understanding of local markets and agreements with local authorities.
The authors conclude that there is a real possibility for significant change in the way that associations manage their assets and that could lead to a more dynamic system of developing and managing homes.
The key issue is not to have centrally driven targets but to enable and facilitate housing associations to manage their assets in the most effective way to meet their aims.
Giving associations the freedom and clear responsibility for doing this could drive efficiency, produce more homes and allow better analysis of local markets.
It also has the potential to transform associations into the sort of entrepreneurial socially-focused rented property companies, meeting a wide range of housing needs and aspirations that this country currently lacks.
If the social housing regulatory system was amended to allow providers to be more flexible in the use of stock, providers would then be free to find their own locally-based balance between:
The project was commissioned by four associations - L&Q, Bromford, Waterloo and Circle Anglia - in the lead up to the Comprehensive Spending Review, to look at allocations of existing stock and new supply.
It looks at freedoms beyond those offered to support development through the affordable rent model and therefore paints an authentic picture of the choices that associations might make if they were not constrained by the framework being developed by government.
Abigail Davies, CIH Head of Policy, said:
"This research demonstrates what can really be achieved if housing associations are given greater freedom in managing their assets.
"It also shows the need to look beyond development viability to consider impacts on need, community investment, allocations and affordability.
"We will be keen to help the sector to develop the strategic skills to understand the dynamics of local housing markets and to plan and manage assets."
Appreciating Assets by Mark Lupton, Mervyn Jones and Abigail Davies and with modelling by Haritha Tippireddy is published by the Chartered Institute of Housing with the support of L&Q, Circle Anglia, Bromford and Waterloo.
A copy of the research is available on this page of the CIH website.