Last week, the NHF published its final version of its new Code of Governance and made some important changes from the previous draft that will impact on those housing associations looking to adopt it.
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 the end of 2020 beckons, we take a look at what progress the Sterling market has made in its preparations for the end of the London Interbank Offered Rate (LIBOR) on 31 December 2021.
Finally, there is a glimmer of hope that perhaps the Covid-19 pandemic could be reaching its end.
For part 2 in this series of short podcasts, Chris Lloyd-Smith interviews senior associate Lisa Whitehouse on how she has been coping during these unprecedented times.
Delayed since Spring 2020 as the Government tackled the Covid-19 crisis, Tuesday 17 November saw the publication of the Social Housing White Paper, setting out the future regulation of the sector
In this ebriefing, we examine how the duty holder regime will apply to social housing providers with existing HRRBs in their housing stock.
Following Katherine's "heads up" last week, the Government has now confirmed that for claim periods post 1 December, employers will not be able to claim for employees who are serving their notice
For part 1 in this series of short podcasts, Chris Lloyd-Smith interviews solicitor Puja Desai on how she has been coping during these unprecedented times.
Over 100 trainees and future trainees from Birmingham joined the BTSS for a webinar to address concerns around training remotely and qualifying during a possible recession.
Anthony Collins Solicitors has supported Birmingham-based Complete Care Holdings in its acquisition of Amegreen Complex Homecare Ltd.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.