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HCA warns stock sales risk damaging sector's reputation

The social housing regulator has warned that housing associations risk damaging the reputation of the sector if they sell stock inhabited by social tenants.

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Fiona MacGregor, executive director of regulation at the Homes and Communities Agency (HCA), said the agency would be keeping a particularly keen eye on social landlords disposing of tenanted stock because of a potential public backlash.

As part of a deregulation drive, ministers have removed the need for associations to obtain regulatory permission to dispose of social assets, although they will still have to notify the HCA of sales.

Speaking at the National Housing Federation’s conference in Birmingham today, Ms MacGregor said: “We’ll want to know about disposals of tenanted property out of the sector. We think that’s one of the areas that could bring the greatest reputational risk to the organisations and the sector, and you see examples of that all the time.

“Our interest in this is that you make sure you comply with the consumer standards, being open and transparent with tenants so they know what the implications of being outside the regulated sector will mean for them and their tenancies.

“We do think it’s important to think about the position and the reputation of the sector… We think we’ve got a role in terms of effective regulation to support that, to prevent problems arising and then if they do happen to act, use our powers where necessary.”

Speaking in the same session, Jeanne Harrison, an analyst at Moody’s, said the housing sector’s pledge to help the government rapidly increase housebuilding was “risky”.

She said: “We’re hearing a lot today about housing associations being part of the solution, and while that is laudable and absolutely in line with the social purpose, it’s risky.

“It feels like there’s almost a defiant attitude at the moment towards growth in the sector, regardless of Brexit, regardless of the rent cut, regardless of all the other changes. There’s a one-track mind towards growth at the moment.”


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