08-02-08

‘The Housing & Regeneration Bill represents the greatest ever threat to the independence of housing associations, their ability to deliver new homes at expected levels and run locally-driven community services’ – says Federation chief executive David Orr. This is because the Bill, currently being considered by the UK Parliament, attempts to impose central control on housing associations which will limit their flexibility and ability to adapt to local needs.
The Federation welcomes parts of the Bill -such as the creation of a powerful new Homes and Communities Agency, to fund urgently needed homes.  But NHF we fears that, by granting the Secretary of State unprecedented power to direct the sector’s affairs, the Housing Bill is in danger of redefining housing associations as public bodies.

The Bill gives ministers the power to impose regulation on a wide range of housing association work, including non-housing activities which receive no government funding. The breadth of this control would allow the Government to implement its own policies through independent housing associations, what we call ‘policy passporting’.
As a result, housing associations, currently part of the voluntary and community sector, could be officially re-classified as public bodies by the Office for National Statistics, when it compiles the Government’s accounts. The loss of the independence status would threaten housing associations’ financial flexibility and their successful funding model based on public-private partnerships. It would half the amount of money housing associations could use to fund the building of new homes.
Federation Chief executive David Orr has written to Ministers asking them to review the content of the Bill.  Federation staff have met politicians from each of the main parties to highlight major concerns about the Housing Bill and propose a number of amendments. Over the coming months the Federation will continue campaigning to remove the worst proposals from the Bill and defend the independence of housing associations, so that they can continue to deliver a unique and diverse range of services.

Find out more about the campaign for the independence of housing association on the National Housing Federation website here