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HCA to relax registration rules
The English social housing regulator is set to relax its registration rules for newly merged housing associations as part of the government’s deregulation drive.
The Homes and Communities Agency is to consult shortly on removing a requirement on merged social landlords to go through a rigorous registration process with the regulator.
Measures already announced in the Housing and Planning Bill, which is currently in parliament, will remove the requirement for associations to ask for HCA consent before forming mergers.
The HCA will now go one step further and radically simplify the process of registering merged bodies with the regulator. Inside Housing understands that the HCA wants to allow merged associations to receive near to automatic approval for registration.
Under current rules, landlords that transfer engagements or amalgamate must undergo a demanding process in order to register with the regulator, including governance and viability checks.
The regulator is concerned that associations would still face additional hurdles from the HCA to registration despite attempts from the government to deregulate the sector.
Ian Graham, partner at law firm Trowers & Hamlins, welcomed the change. He said: “We really need to ensure that a landlord which resolves to transfer engagements or amalgamate is not worried that at some point in the future it is going to trip over a hurdle with the HCA about whether or not the entity is capable of registration.”
The government has signalled that it would like to see more mergers in the 1,500-strong English housing association sector.
When L&Q, Hyde and East Thames announced plans to merge last month, housing minister Brandon Lewis said: “In my mind this is exactly what housing associations should be doing.”
The National Housing Federation (NHF) last year published its first merger code, a document that was widely seen as a move to encourage thinking about mergers.
The HCA has been contacted for comment.
UPDATE: at 4.23pm 10.5.16
An earlier version of this article said L&Q, Thames Valley and East Thames are planning to merge. This of course should have read L&Q, Hyde and East Thames. We apologise for any confusion.
TYPES OF HOUSING ASSOCIATION MERGERS AND PARTNERSHIPS
Transfer of engagement A transfer of one housing association’s business into another, with all assets and liabilities automatically bestowed to the receiving business.
Amalgamation One or more associations merge together to form a combined body into which assets and liabilities are transferred.
Group structures A new parent entity is formed, with subsidiary organisations able to reain their individual identity, with no automatic transfers of assets or staff.
Strategic alliance Where organisations form a close working relationship and agree to work together but remain constitutionally separate
Source: National Housing Federation
