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For-profit provider refuses to change its name from ‘housing association’
A for-profit registered provider of social housing has refused to change its name, amid a row over whether or not these organisations can use the name ‘housing association’.
Inside Housing understands the National Housing Federation (NHF) asked Major Housing Association to change its name, following its legal threat to Sage Housing over the same issue.
The London-based organisation has, however, refused.
Last week, the government weighed in on the row, instructing Companies House to prevent any future for-profit organisations from registering under names including the phrase housing association.
The last year has seen a sharp rise in the number of for-profit providers, including some major players such as Legal & General and the world’s largest property investor Blackstone, which funds Sage.
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Sage backed down almost immediately following the request of the NHF and changed its name.
Aman Singh, chief executive of Major, told Inside Housing: “We deem our work completely the same to not-for-profit registered providers. It would not be fair for us to be asked to change our name after seven years of registration.
“Having taken legal advice on the matter, we have been advised that we are under no legal or regulatory obligation to change our name, and we will not be doing so.”
Major is one of two for-profit providers calling themselves housing associations. The other was Funding Affordable Homes (FAH) Housing Association, a subsidiary of an investment fund by the same name, which was set up by the merchant bank Salamanca Group.
A spokesperson for Companies House said: “Funding Affordable Homes Housing Association Limited is a company limited by guarantee with a not-for-profit clause in its articles of association. It therefore meets the criteria required to use ‘association’ in its company name.
“This does not appear to be the case however for Major Housing Association, which was incorporated in May 2010 under the name Major HA Limited, and we will contact the company in relation to this.”
Paul Munday, chief executive of the fund, told Inside Housing: “We consider ourselves to be and to function as if we were a housing association. But with all the issues that have been raised, if we were re-registering, we probably wouldn’t use the term. It’s more something that comes from history than any particular stance from our point of view.”
Inside Housing understands that the NHF has not asked FAH to change its name, and is more concerned about Major, which it feels uses the term more publicly including on its website.
David Orr, chief executive of the NHF, said: “Earlier this year, we took steps to stop for-profit companies describing themselves as housing associations.
"We are glad that the government has now done as we asked, confirming that housing associations exist for the benefit of the community.
“We are aware that there are for-profit companies that still describe themselves as ‘housing associations’. With the publication of the secretary of state’s letter last week, we are confident that Companies House will now take steps to resolve this situation.”
