To trade or not to trade?
Kate Davies CBE FRICS
Consultancy to help the property, technology, investor and maintenance sector understand social housing better.
Catherine Raynsford was at REiiF last week to promote the idea of housing associations selling to the for profits, specifically L&G where she is tasked with buying unwanted social homes.
She said: “We’ve got a very, very big housing problem, and so you’ve got to think about ways of unlocking [new homes]. And I just think the active trading between [registered providers], whether for-profit or not-for-profit, is a really big part of that.”
It's an interesting question.
I have "actively traded" social housing. But not in those terms. I have worked with other housing associations to exchange, buy and sell social homes in order to provide a better service for tenants. There were parts of the country where we were thinly spread where we believed a local or specialist housing association could do a better job. And of course when Orbit or others sold homes to us in parts of London where we had established relationships and teams we both felt NHG could do a better job. In all instances I was motivated by improving services, and the fabric of the homes, which we arranged as part of the transfer.
Over the years we looked for the best partners and our board wanted to see due diligence about their standing, finances, regulatory status and crucially what their tenants thought and wanted. In fact we did get a few bids from private sector organisations but we felt their culture wasn't right although the price was often higher.
Housing associations may be selling 100,000 homes (although not all are social rented homes). Landlords are free to sell to private bodies that are regulated. So I would say the sector must decide on the quality of the offer from the For Profits, their track record, how they are doing the management and their financial and regulatory standing, as well as the offer to the tenants and the transferring association. I don't personally think it should be an automatic "no".
Of course there may soon come a point (it's already here) when the FPs are try to "actively trade" their portfolios. For my insight into the For Profit sector please download Dynamic or Dangerous? https://goldenmarzipan.co.uk/insights/download-the-uk-for-profit-sector-dynamic-or-dangerous-kate-davies/
Director of Partnerships at National Housing Group
4moThere’re ethical non registered private providers such as National housing group who’re buying housing association homes earmarked for dusposals, refurbishing and leasing them to local authorities and other homeless providers on Local Housing Allowsnce rates. The principle is to retain social housing in the sector at affordable rents. We’re happy to speak to any RP wanting to sell unwanted homes. Please contact me for initial discussion on Nicholas@thenhg.com; 08979715759.