Updated 13.11.15
Housing association independence
David Orr's blog is posted on the National Housing Federation's website. It takes a look at future developments for housing associations and the problems of not being fully in control of their own long term financing and future strategy.
We've been standing on this tightrope for far too long. Housing associations have always been independent, private social enterprises which exist for community benefit. They have been at the centre of the most consistently successful public/private partnership in the UK economy. They are, of course, the private part of that relationship.
This is something to be celebrated, cherished and protected. And yet, throughout my time as Chief Executive of the National Housing Federation, and in my previous job running the Scottish Federation of Housing Associations, the single constant theme has been the challenge of keeping government at arm's length and protecting the ability of boards to make their own independent decisions and craft their own futures.
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A Possible New Deal for Housing Associations?
Peter Hubbard, Senior Partner at Anthony Collins Solicitors, posted this opinion piece on his company website.
The recent ONS reclassification of housing associations and the Government's likely response to it could well lead to nothing less than a seismic change for the housing sector.
The "new deal" that will emerge is likely to challenge many of our preconceptions about what housing associations will be free to do. Here are a few thoughts on what one version of the future could look like that I don't think will be far off the mark.
Updated 03.11.15
Genesis HA and Thames Valley HA
The Boards of Genesis Housing Association and Thames Valley Housing Association have approved an outline business case to merge the two organisations to create a new 47,000 home organisation.
The merged organisation plans to build 3,000 new homes per year.
Neil Hadden, Chief Executive of Genesis Housing Association said:
"The environment in which housing associations operate has changed very substantially. Associations must be agile, innovative and resilient.
"We still want to be building homes and creating thriving communities to support our customers in another 50 years - we believe that this proposed merger of two organisations with similar values and similar approaches will create a firm foundation for the future."
Geeta Nanda, Chief Executive of Thames Valley Housing Association said:
"This positive proposal will create a dynamic organisation that will deliver thousands of new homes. We have a huge housing crisis and we need new and bold solutions to deal with it.
"Of the 3,000 homes we intend to build as a merged organisation, 1,800 will be affordable homes. Both Thames Valley and Genesis have a strong commercial track record of getting homes built across a range of different tenures.
"We jointly believe that this merger proposal would leverage the best of both organisations and their partnerships, and that we would be stronger together."
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AmicusHorizon and Viridian Housing
AmicusHorizon and Viridian Housing are to start discussions to explore the possibility of forming a new group structure. Together they would own 44,000 homes.
Paul Hackett, Chief executive of AmicusHorizon said:
"Working together we can build on our track record of engaging with residents to deliver sector-leading customer services.
"Economies of scale will enable us to accelerate our digital offer to increase choice at lower cost. By working together we can create the capacity to build more homes, more quickly than we could alone."
Nick Apetroaie, Chief Executive of Viridian said:
"Both organisations share similar values and goals which is a strong starting point for our discussions.
"Our cultural and geographical synergy will provide the opportunity to deliver even better services and more homes for people on a range of incomes while delivering operating efficiencies. "
Posted 02.11.15
The Office for National Statistics published its long-awaited investigation and ruled that a consequence of the 2008 Housing Regeneration Act was that housing associations had to be included in the public accounts.
The detailed statement said:
"Private registered providers (PRPs) are units which provide social housing and are registered with the Homes and Communities Agency. This includes all housing associations registered with the Homes and Communities Agency.
"ONS assessed the statistical classification of PRPs in accordance with internationally agreed rules in the European System of Accounts 2010 (ESA 2010) and accompanying Manual on Government Deficit and Debt 2014 (MGDD 2014).
"It was judged that all PRPs should be considered as institutional units as they have the ability to incur liabilities and hold assets on their own accounts, enter into contracts, and exhibit sufficient decision making autonomy.
"ONS also concluded that PRPs are subject to public sector control due to, amongst other things; HM Government consent powers over disposals of social housing assets; HM Government consent powers over constitutional restructuring of PRPs' constitutional documents; and HM Government powers over the management of PRPs.
"Consistent with conditions described in ESA 2010, PRPs were also judged to be market producers. Based on these conclusions, "private registered providers" of social housing in England will be reclassified as public non-financial corporations (S.11001) from 22 July 2008."
The ruling is a significant blow to the sector. It is likely to add further pressure to the complicated negotiations that are continuing on the Housing and Planning Bill.
Following the ONS ruling, a statement from the DCLG sought to reassure the sector:
"Measures to allow the deregulatory changes to be made are included in the current Housing and Planning Bill and will continue to be worked on by the Government and housing associations.
The DCLG's statement challenged why the decision had been taken so long after the 2008 legislation that formed the basis of its decision, saying:
"The ONS has altered, with retrospective effect, how housing associations are treated in the national accounts. This relates to measures in the Housing and Regeneration Act 2008, taken by a previous government, on which the ONS have revised their view. This is purely an ONS statistical change which will be applied retrospectively.
"The change makes no material changes to the operation of housing associations, gives the government no new powers over them, imposes no new borrowing controls and has no effect on tenants.
"However, the Government is committed to reflecting the historic voluntary ethos of the sector and ensuring housing associations continue to be recognised as independent organisations."
