The way that the housing association sector organises itself is changing rapidly. Housing associations, referred to in this report as registered social landlords (RSLs) are individually registered by the Housing Corporation. Their performance is monitored at the level of individual organisations. But three-quarters of all RSL homes are now part of a formal group of two or more organisations; one-half are part of a group that contains at least two RSLs.
The popularity of groups is growing, and the way many new groups are organised is changing. The most recent registration figures show that the Corporation registered more groups in 2000/01 than new RSLs.
Groups cost money to set up and to run, and any change from one organisation to another absorbs time and energy. When an existing RSL joins a group there is a loss of some of the flexibility and independence enjoyed by an individual organisation.
This report looks at why groups are nevertheless popular among RSLs, and why the kind of group structure that is adopted varies. It investigates whether groups deliver the benefits hoped for by those who decide to set them up, and whether there are clear benefits to tenants or external stakeholders (such as local authorities and lenders) that outweigh the acknowledged costs of group arrangements. It considers whether RSLs not in a group can deliver the same benefits, and whether current systems of accountability and regulation work for increasingly complex group-based relationships.
Included in this report:
- the development of group structures - an overview
- the financial costs and benefits of moving to a group structure
- using groups to promote stock growth
- using groups to promote or manage diversification
- accountability issues for groups
- group regulation