RTB for NI associations could be scrapped

The Scottish and Welsh governments also confirmed this week they would consider legislation to deregulate associations if the ONS opts for reclassification when it makes its decision in the next few weeks. The ONS has already reclassified English associations as public bodies.

A reclassification would put association debt in the devolved nations on to the UK balance sheet and could lead to Westminster restricting the amount of money the Welsh, Northern Irish and Scottish housing associations could borrow.

To avert this threat ministers in Northern Ireland are working up details of a possible deregulatory package with input from the Northern Ireland Federation of Housing Associations (NIFHA).

Cameron Watt, chief executive of NIFHA, said ministers “recognise” the potential for Right to Buy legislation in Northern Ireland to be a ground for reclassification and would considering axing it if the ONS reclassifies.

The ‘House Sales Scheme’ – Northern Ireland’s version of the Right to Buy – applies to both housing associations and the Northern Ireland Executive.

Mr Watt said: “We expect the House Sales Scheme will need to be repealed for housing associations.”

Under the House Sales Scheme, tenants are eligible for a 20% discount off the price of their social property if they have lived there for five years, which increases by 2% a year to a maximum of 60% of the home or £24,000.

The Executive is also understood to be looking at changing the rules for consent over association mergers and land disposals.

A spokesperson for the social housing regulator the Department for Communities said: “The department will consider carefully the ONS decision and its implications.”

The Scottish and Welsh governments have also been scoping out the potential for deregulation in the housing association sector in preparation for the ONS announcement.

A Scottish Government spokesperson said it was “committed to registered social landlords continuing to be classified to the private sector, and is considering legislation to ensure that remains the case”.

A Welsh Government spokesperson added: “We are exploring a legislative solution to the potential issue of reclassification.”