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Stock transfer housing association to convert to community benefit society
A Sussex-based stock transfer housing association is preparing to convert to a community benefit society to achieve “significant administrative savings”.
Six thousand-home Saxon Weald, formed in 2000 through a stock transfer from Horsham District Council, hopes to complete the process by the end of December.
Most housing associations are already community benefit societies but some are still limited companies as well as being registered charities, meaning they are regulated by the Charity Commission.
After the government passed the Housing and Planning Act in 2016, housing associations no longer need the permission of the Regulator of Social Housing to sell homes outside the sector.
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Housing associations regulated by the Charity Commission, however, would still need to seek that body’s permission to do so.
As a result, shortly after the act was passed some housing associations that were limited companies began to consider becoming community benefit societies.
They are ‘exempt charities’, meaning they still benefit from charitable status but are not registered with the Charity Commission and so do not need to ask for consent to sell stock.
A spokesperson for Saxon Weald told Inside Housing: “Saxon Weald is in the process of converting to a community benefit society and hopes to have completed the change by the end of December. This means we will be registered with the Financial Conduct Authority rather than being a limited company.
“This will not impact on our services or our customers’ rights, but it does bring us significant administrative savings. It also means a change to our name from Saxon Weald Homes Limited to simply Saxon Weald.”
In a judgement, credit ratings agency Moody’s said the change will not result in any change to Saxon Weald’s rating.
It noted specifically that the terms of the £225m bond the association issued in 2012 will remain the same.
