Associations now reliant on home sales
Up to 15 per cent of housing association home sales are to buyers other than tenants or other social landlords, according to a Housing Corporation review.
The scrutiny of housing association disposals shows that the largest category of sales between 2002 and 2005 was to tenants, followed by shared ownership sales. Disposals of property outside the sector accounted for up to 15 per cent of sell-offs in any year.
The review found that the money generated from shared ownership sales has become an integral part of many associations' business plans, dominating associations' sales in London.
Between 2001/02 and 2004/05, the profits made by associations on property sales rose by 132 per cent. The corporation said it would be examining associations which were ‘significantly dependent' on the money generated by shared ownership sales, given the uncertainty in the property market.
The review was one of two published by the corporation this week. The other, on resident involvement, shows that 3 per cent of housing associations have not complied with the corporation's demand to publicise a statement on resident involvement.