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It’s good that the sector is talking about rent freedom
Housing associations want the freedom to set their own rents so they can build genuinely affordable housing, says Nick Yandle
It’s been fascinating to read the ongoing debate over the future of housing association rents in recent weeks. The discussions have been informed, constructive and challenging, exploring both how greater control over rents could be achieved and whether it is the right course of action.
“The ability for housing associations to set their own rents would mean they could best meet the varied needs of real people.”
At the National Housing Federation, we’ve posed these questions of our members. We have found that most housing associations agree this is the right way to go – even if significant work is needed to implement the change.
One of the key arguments centres around boards’ ability to shape business plans. It is all very well making decisions about risk and innovation, but how can you take a long-term, strategic view when you have no say over your main income stream?
Simply, housing associations exist to improve people’s lives by building new homes and providing vital support for some of the most vulnerable people in society. If they are to continue being ambitious and forward-thinking organisations, then they need the confidence to make the decisions that help them invest in their communities.
The ability for housing association boards to set their own rents would mean they could best meet the varied needs of real people in real housing markets – by providing genuinely affordable housing. It could also equip them to build new homes more quickly and allow greater efficiency in regenerating long-neglected communities.
Explaining the rationale for rent levels to tenants is another challenge the sector presently faces. Under the new regime, our members said they would develop rent policies in conjunction with local people and would be transparent in explaining the reasoning – demonstrating the sector’s commitment to its social purpose.
As we await the outcome of a general election in which housing has featured heavily, these important debates will stand the sector in good stead as we continue working to meet the nation’s housing needs. The conversations on rents give us the opportunity to reclaim the language around affordable housing, to own our future and to realise our ambitions.
“Surely we have the expertise to control our core income.”
I believe in the social mission of housing associations, and in the ability of our boards to chart a course which balances the social with the commercial to support long-term and sustainable delivery.
As a sector we manage billions of pounds of assets, house millions of people across the nation and build thousands of homes across all tenures every year – surely we have the expertise to control our core income, too.
Nick Yandle, policy officer, National Housing Federation
