G15's call to Government

G15: Government must preserve regulatory independence.

The G15, the group of London’s largest housing associations, has called for the government to ensure the independence of social housing regulation is preserved.  

As the government prepares to review the framework for regulating social housing, the G15 has urged that regulation must be kept independent of both central and local government.

A loss of regulatory independence could threaten private funders’ confidence and the private body status of housing associations, and add further debt to the government’s balance sheet, it warns.    

It is important that regulation is independent of government. This was the argument put forward by Professor Martin Cave when he carried out his independent review of social housing in 2007. As a result, the regulatory and investment functions of the Housing Corporation were split and the Tenant Services Authority and the Homes and Communities Agency were set up on 1 December 2008.   

Stephen Howlett, chair of the G15 and chief executive of Peabody, said: “The G15 believes that whatever changes the government makes, it is vital that regulatory independence is preserved.

“The existence of independent regulation has given lenders who invest in housing associations confidence, which has improved the availability of funds and the price that has to be paid for lending.

“The loss of independence would not only be a matter of concern to funders; it would also risk the private body status of housing associations. This is very important because it gives them independence and flexibility, and it means that housing association borrowing, and it is in excess of £50 billion, is not counted as part of the government’s debt.

“To put this money into the government’s balance sheet would further weaken the country’s position beyond the £155 billion debt the government already acknowledges.”

He added:  “Much work has been done over the last year with the TSA agreeing the standards that housing associations and other providers must fulfil. Properly and independently carried out, such regulation is welcomed by G15 housing associations. It would be a great pity if these standards were not implemented and the protections they offer to residents lost.”