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Welsh Government launches reclassification proposals
The Welsh Government has proposed scrapping its powers to control home sales and limiting local authority influence, as it bids to return housing associations to the private sector.
Housing associations in the UK’s devolved nations were moved onto the public balance sheet by the Office for National Statistics (ONS) in September last year.
The consultation proposes regulatory reform which would allow the ONS to consider shifting associations in Wales back to the private non-financial corporation sector.
Tweaks to current legislation which would help push the move through involve replacing some Welsh Government powers of consent with duties to notify on the part of associations, including for land disposals, restructuring and dissolution.
Local authorities’ influence over housing associations would also be reduced under the plans by limiting council representatives’ access to boards.
Inside Housing previously revealed that the consultation would be brought forward quickly after the 4 May local elections.
A statement from Carl Sargeant, communities and children secretary for the Welsh Government, said housing associations “play a vital role” in helping to meet the administration’s 20,000 new affordable homes target and that they need “the freedom to use private sector borrowing”.
He added: “Unless we take action which would enable ONS to reverse the reclassification and return [registered social landlords] to the private sector, our plans to address the shortage of affordable homes in Wales will be severely compromised.”
The consultation, which closes on 3 July, is available here.
