Next in our series of ebriefings on the Government’s Green Paper: Transforming public procurement; looking at the Chapter 4 proposal to change the basis of contract awards.
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.
The Academies Financial Handbook is updated annually by the Department for Education and the Education and Skills Funding Agency; it contains a number of governance requirements for academy trusts.
Supreme Court publishes key decision for those working in the UK’s gig economy.
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The Building Safety Bill (the Bill) is said to be the most significant and wide-ranging change to the regulatory environment for higher risk building (HRBs) for over 45 years.
On 4 November 2020, the Restriction of Public Exit Payments Regulations 2020 (the Regulations) came into force; exit payments for the public sector were capped at £95,000.
The case was brought by the Official Receiver who sought disqualification orders under section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986) against the seven trustees of Kids Company and its CEO. It illustrates well the tension between the role of a fulltime paid CEO of a large charity and the role of its board as voluntary trustees/directors.
At the end of 2020, The Charity Governance Code was updated or 'refreshed' as it is termed on its website.
Anthony Collins Solicitors is today (Thursday 11 February) revealing the scale of its social impact during 2020.
In their first podcast of this series, current and future trainees will discuss their journey and route to securing a training contract at Anthony Collins Solicitors.
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