Housing association

WorldBrand briefing

AI supplement

Original synthesis to sit alongside the encyclopedia article below. Not part of Wikipedia; verify facts on Wikipedia when precision matters.

A housing association is a type of independent, non-profit organization most prevalent across the United Kingdom and Ireland, established to deliver low-cost social housing to people in housing need, including low-income households, vulnerable groups, and individuals unable to afford private market accommodation. All operating surpluses generated are reinvested into property maintenance and new affordable housing development, rather than distributed to private shareholders, and the sector operates under formal government oversight with access to public funding and regulatory benefits.

Key moments

Mid-19th centuryEarly housing association initiatives emerged in the Victorian United Kingdom, founded by wealthy philanthropists and religious groups to provide safe, decent low-rent accommodation for industrial workers living in overcrowded slum conditions.
1979The Thatcher UK government took office and launched its council housing privatization agenda, creating major new growth opportunities for the housing association sector to take over social housing stock previously owned and operated by local municipal authorities.
1988The UK revised its national Housing Act, formally granting housing associations official status to purchase, own and manage social housing, alongside government financing support and preferential tax treatment that drove rapid sector expansion.
1990sHousing associations overtook local councils to become the primary provider of new social housing units across the UK, managing millions of residential properties for millions of tenants nationwide.

Core public policy value of the housing association model

The structure of housing associations fills a critical gap in post-privatization UK public housing systems, compensating for the steep decline of local government-owned council housing stock that has occurred since the 1980s. Unlike private for-profit landlords, they are legally bound to prioritize long-term affordability over profit maximization, protecting vulnerable tenants from sudden rent spikes and unfair evictions in tight residential property markets.

Modern operational tensions for the sector

As housing associations have increasingly turned to public bond markets to raise capital for large-scale new construction projects, they have faced growing pressure from private investors to maintain predictable revenue streams. This shift has drawn criticism from housing advocacy groups, who note that a rising share of new units managed by housing associations now charge near-market rents, partially eroding the original core mission of providing deeply subsidized accommodation for the lowest-income households.

Global adaptation of the framework

Variations of the UK housing association model have been implemented in other regions, including Hong Kong, where the Hong Kong Housing Association operates subsidized public housing for residents who fall slightly outside the eligibility threshold for the main government public housing scheme, and multiple jurisdictions in North America, adapting the non-profit social housing structure to align with local policy constraints and local housing shortage contexts.

In Ireland and the United Kingdom, housing associations are private, non-profit organisations that provide "social housing" for people in need of a home. Any budget surplus is used to maintain existing housing and to help finance new homes and it cannot be used for personal benefit of directors or shareholders.[1] Although independent, they are regulated by the state and commonly receive public funding. They are now the United Kingdom's major providers of new housing for rent, while many also run shared ownership schemes to help those who cannot afford to buy a home outright.[2]

Housing associations provide a wide range of housing, some managing large estates of housing for families, while the smallest may perhaps manage a single scheme of housing for older people. Much of the supported accommodation in the UK is also provided by housing associations, with specialist projects for people with mental health issues or learning disabilities, with substance misuse problems (alcohol or illegal drugs), the formerly homeless, young people, ex-offenders, asylum seekers, and people fleeing domestic violence.

In Australia, the term "housing association" refers to larger, growth-oriented 'not-for-dividend' community-housing providers.

Legal status

Housing associations may be constituted using various forms of legal entity. Many are industrial and provident societies, but there are also trusts, co-operatives and companies. They may or may not be registered charities.

Registered social landlord (RSL) is the technical name for social landlords that in England were formerly registered with the Housing Corporation, or in Wales with the Welsh Government. From 2010 to 2012, associations were termed registered providers under the Housing and Regeneration Act 2008, irrespective of status (private, public, for-profit or not-for-profit). As of 2012, the terms registered social landlord and private registered providers of social housing are both used as alternative names for housing association.[5]

Housing associations are generally considered as private entities in that they are not owned or directly controlled by the state. This status, however, has been challenged by a number of legal rulings. In 2004 the British government accepted a European Commission opinion which held that registered social landlords are bodies governed by public law for the purposes of procurement.[6] As a result the Housing Corporation, the National Assembly for Wales, Communities Scotland and the Department for Social Development in Northern Ireland each issued guidance for RSLs on the application of the Public Procurement Directives to their acquisition of goods and services.[7]

Subsequently, the English High Court in Weaver v. London and Quadrant Housing Trust [2008] EWHC 1377 (Admin) ruled that housing associations were public authorities and as a result could be subject to judicial review in certain circumstances.[8] The court stated that the housing association sector was 'permeated by state control and influence with a view to meeting the government's aims for affordable housing, and in which RSLs work side by side with, and can in a very real sense be said to take the place of, local authorities'.

This issue had wider political significance since housing associations' borrowing (which stood at approximately £30 billion in 2006)[9] does not contribute to the UK's public sector borrowing requirement, the control of which is both a stated government objective and part of the EU's criteria for membership of the European single currency.

Funding and regulation

Housing associations' day-to-day activities are funded by rent and service charges payments made by, or on behalf of, those living in its properties. In this sense, housing associations are run as commercial entities and the majority do not depend on donations for their general activities.

New housing generally receives economic subsidies, the source of which will depend on where the association is based:

Subsidies for new homes (often termed 'social housing grant') amount to sizeable public investments. In its 2008–11 prospectus, the Housing Corporation stated that in the three-year period to 2011 investment would be "at least £8 billion".[11] The majority of this would go to housing associations for use in development projects. Since 2003, in an effort to seek greater value for money, much of the funding by the Housing Corporation for new house building has been channelled to fewer than 80 "developing housing associations" that have achieved "partner status" through partner programme agreements. Long-term lender option borrower option loans (LOBOs) have been taken out in the past by housing associations.[12][13]

Housing associations borrow money to pay for new homes and improvements. After the Housing Act 1988, the proportion of the cost of new homes met by capital grants was scaled back by the government, so borrowing became the primary source of funding for investment. Much of this was simply borrowed from banks and building societies, but after the 2008 financial crisis, these institutions ceased to offer long-term loans, so developing associations are increasingly turning to corporate bonds to raise funds for expansion.[14]

The HCA implemented a new government policy of "affordable rents" for its 2011–15 funding round, requiring associations to set rents at up to 80% of market rents so that less up-front capital subsidy would be required. In September 2013, a group of London boroughs initiated a judicial review to challenge this policy.[15]

In England, housing associations are funded and regulated by the Homes and Communities Agency (HCA), the exception being funding in London which from April 2012 is the responsibility of the Greater London Authority.[10] The HCA's predecessor until 2008 was the Housing Corporation. The Housing Corporation's regulatory role was split out to a separate body from 2010, the Tenant Services Authority (TSA), but merged again into the HCA from April 2012.

In Northern Ireland, the same role is carried out by the Northern Ireland Housing Executive.

In Scotland, this function is fulfilled by the Scottish Government.

In Wales, the regulation and funding of housing associations is carried out by the Welsh Government.

Housing association

WorldBrand briefing

Core public policy value of the housing association model

Modern operational tensions for the sector

Global adaptation of the framework

History

Legal status

Management

Funding and regulation

Landlord's obligations

Industry bodies

See also

External links

References