It is anticipated that as lockdown restrictions ease, and particularly with children and young adults returning to education, cases of meningitis will start to rise.
Over the last few years the meaning of “asset management” has changed from it being all about repairs to an understanding of, well, managing an asset and, in particular, understanding assets might not stay in an organisation forever.
Many, if not most, registered providers (RPs) know the total costs of managing a particular asset and especially can identify those assets that are expensive to manage. The surplus generated by any social housing property is finite and can easily be turned into a loss in the event of higher-than-average management costs.
The other understanding that has developed within RPs is the market value of an asset. Coupled with an understanding of where assets are truly needed means there are multiple routes to deciding that some properties need to be sold on the open market when they come up as a void.
The stock rationalisation market is also developing; there is a growing market for shared ownership portfolios (providing a holy grail for pension funds through the ability to give “guaranteed” Retail Price Index (RPI) returns) as well as a lively market for other types of social housing. Supported housing portfolios have come to market; disposing providers wish to exit that market or prefer to leave to others redevelopment.
Current issues are:
- Ethical stock rationalisation – is moving properties that are expensive to maintain and live in into what typically is the private rented sector the kind of thing registered providers should be doing? It is conceivable the Regulator will become interested in this issue in which case providers need to be ready with a cogent answer.
- Stock swaps – after a very long gestation period (we wrote the original NHF Guide in 1997!) there are actual large transactions underway. Stock swaps can provide a more cost-effective solution for stock rationalisation given that both parties are in the same negotiating position.
- Tenant consultation – though the Moat downgrading happened over a year ago, providers are still working through the need to engage critically with tenants when there is a contemplation of the sale of their homes. In our view, being transparent with tenants about why their property is being sold, what the new provider’s offer is, (as it affects tenants), and providing a “warts and all” appraisal of the provider and, most particularly, remembering that tenants are charitable beneficiaries of providers are the issues providers need to take into account.
For more information
Please contact Jonathan Cox.
Jonathan is speaking on “Ethical Stock Rationalisation” at Homes UK 2019.
As we continue to emerge from lockdown measures and deal with local measures and the short and long term economic impact of Covid-19, local authorities will need to re-assess how services will be delivered for years to come.
The Government first announced plans for a shared ownership right to buy in October 2019. At the time the sector raised concerns about the impact the plans would have on housing associations ability to borrow. An election and a pandemic later the Government announced, during the CIH Housing Festival last week, the return of the right to shared ownership as part of its Affordable Homes Programme (AHP).
Two final pieces of the possession jigsaw have been published on 15 September 2020. Mr Justice Knowles’ working group on possession proceedings has issued its guidance on the “overall arrangements” for possession proceedings.
One change proposed by the Building Safety Bill is the introduction of a duty holder regime, which will see statutory responsibility for the safety of higher risk buildings placed on key individuals
Throughout this pandemic, the Competition and Markets Authority (CMA) has been publishing various “Statements on Coronavirus” (Statements) which provide guidance on consumer rights during this time.
A recent increase in COVID-19 cases in the UK means new measures are being put in place in an effort to reduce the risk of a second wave. Whilst the impact of COVID-19 continues to be felt, it is important to remain focused on the sector’s road to recovery.
Sometimes half an hour at a conference gives you the reality that has been staring you in the face all along. That was my experience watching “Change is on the Horizon”
Following our recent e-briefing on Possession Notices, Helen Tucker and Emilie Pownall from our housing litigation team discuss the impact of the changes on social landlords.
Not only has the possession stay been extended until 20 September, the notice periods to be given to tenants has been extended in certain circumstances with some important exceptions.
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