What is a housing association?

Housing associations play an important role in local communities. In today's Cost of Living crisis, many people are finding it increasingly difficult to buy their own home outright, get on the property ladder or even find suitable accommodation for rent.

That's where housing associations come in.

What is a housing association and what do they do?

Housing associations are not for profit organisations that own, let and manage different types of affordable housing for people across the UK and Northern Ireland. These properties include social housing, shared ownership homes, market homes to rent and buy, as well as essential supported and specialist housing.

Housing associations were originally developed by Victorian philanthropists in the late 19th century as a solution to alleviate poverty and help homeless people find safe and comfortable accommodation.Today there are over 1500 different housing associations in the UK.

In recent years, housing association homes have become one of the best opportunities for prospective buyers wanting a comfortable home.

Housing associations also offer support for vulnerable people by investing their acquired revenue in community services and regeneration.

How do housing associations work?

A voluntary committee oversees the running and management of a housing association. This makes the system much fairer, ensuring a democratic housing management process. The committee often includes residents, allowing residents to have a say in the running of their community.

How are housing associations regulated?

In England, the Homes and Community Agency is the non-departmental public body responsible for providing supported housing, affordable rental accommodation and other specialist housing.

The Scottish Housing Regulator, the Welsh Assembly, and the Northern Ireland Housing Executive are responsible for Scotland, Wales, and Northern Ireland respectively.

These organisations are available for housing associations advice and support. Their performance is regulated through regular inspections of their financial performance and efficiency.

Key facts and figures

In England there are 1500 housing associations providing two million homes for over five million residents. Overall, these housing associations are seen by over 30,000 voluntary committee members.

Peabody Trust is one of the biggest housing associations in Greater London. Providing supported accommodation for over 50,000 people, they have properties in a number of desirable locations throughout London.

Other well-known associations include the Guinness Partnership and Octavia, both of which were founded during the first wave of housing associations.

Social housing

Social housing is perhaps the most common type of home provided by housing associations. It includes social rented homes and affordable rented homes for those in lower income brackets.

Residents living in social housing are given extra support with subsidised rent: affordable rented homes are usually rented at approximately 80% of the average local market rent, whilst social rented homes are rented at around 50%.

Social housing vs council housing

Social housing and council housing can sometimes be mistaken for the same thing. In fact, housing association accommodation is often used as an alternative to council owned housing. This might be because their initial application for council housing found them in insufficient need.

While council housing is owned by the local authorities, social housing is owned and managed by registered social landlords (Landlords who are registered with the social housing regulator and operate independently from councils).

Local authorities oversee and manage the allocation of social housing, which means most tenants are referred by the local council, but the housing association properties themselves are managed by separate landlords.

Shared ownership homes

Housing associations provide shared ownership homes to those who may be on lower incomes and are finding it difficult to raise a deposit to buy their own home.

When you buy through a shared ownership scheme, you buy between 25% and 75% of the property, then pay a reduced rent on the remaining percentage to a housing association.

Buying a percentage of a home means you can put in a smaller deposit, and apply for a smaller mortgage. The pandemic added 2 years to the average age of first time buyers, so shared ownership schemes are really helpful for younger people wanting to get a foot on the property ladder.

Market homes to rent and buy

Housing associations also provide homes to rent or buy at market rates. They build thousands of new properties for communities across the country, including homes for social rent, affordable rent, and shared ownership.

As with all non-profit making organisations, the revenue acquired from housing association properties is always reinvested back into their social mission. For example, the sale of a housing association property may be used to build more social housing or affordable homes. They also receive some government funding.

You can search for valuations on homes in your local area or an area you're thinking of moving to using our valuation tool:

Supported and specialist housing

Supported and specialist housing is designed to help vulnerable people such as elderly people or those who need extra support to live independently.

There's a variety of support and specialist housing, including:

• Domestic abuse shelters
• Homeless hostels
• Homes equipped to help people with mobility problems
• Homes equipped to help those with physical or emotional support needs
• Homes where housing associations provide care and support services to residents

Community services and regeneration

Housing associations don't just cover housing specifically. They also run a variety of services for their local communities, including training and advice, apprenticeships, youth schemes, youth hostels and community hubs.

As well as community services, they work closely with local authorities and local councils to improve the quality of living in their communities. They also aim to regenerate poor quality homes to help provide residents with comfortable and enjoyable places to live.

How do housing associations invest their money?

Housing associations are not-for-profit organisations, meaning they don't make profits for shareholders. They invest all of their money back into delivering affordable homes and supporting local communities.

Who is eligible for a housing association property?

Not everyone is eligible for social rented housing or other housing association homes. To be eligible, you must be on your local council housing register. Eligibility criteria may vary from place to place, but in most cases you must meet these particular requirements:

• Be 18 years or older.
• For sheltered housing applications you must be 55 years or over.
• Have a particular need when it comes to housing such as your accommodation is unsuitable for medical reasons or your local area is overcrowded.
• Not have refused an offer of suitable accommodation in the last 2 years.
• Fall below a state income threshold.

How long can you live in a housing association home?

Housing association homes are often split into different types of tenancies.

Starter tenancy

A starter tenancy is usually offered to a new housing association tenant. They last 12 months and are treated like a trial period.

Assured and fixed-term tenancies

After 12 months, you'll be offered a fixed-term or assured tenancy. Assured tenancies allow residents to live in the property for the rest of their lives, while a fixed-term tenancy lasts for 5 years. After 5 years, the landlord will decide whether or not to renew the tenancy.

How does the application process work?

You can apply for a housing association home through the association itself. Sometimes the application will include an interview. If there is high demand for housing association homes, you may go on a waiting list until one becomes available.

Who gets priority for housing associations homes?

Because there can be such high demand, housing associations have to give priority to groups that meet particular criteria, including:

• older people
• people who are homeless
• people who live in overcrowded, unsafe or unsanitary conditions
• people with medical needs

Housing associations may prioritise differently, so it's always best to check with your local association to find out if you'd be immediately eligible or placed on a waiting list.

Summary: Supported housing, affordable homes, better communities

The purpose of housing associations is to build better communities for their local areas. They'll work with local authorities to facilitate social housing and affordable rent, making accommodation more accessible to those on a low income.

They also invest in schemes and programmes to help those buy their own home and get on the property ladder, including shared ownership schemes, as well as building their own properties to sell as market homes.

Housing associations are democratic, not-for-profit, and most importantly, for the residents. They want local people to have a voice in the development of their communities, whether that’s through housing, affordable rent, the quality of existing homes or other specialist services.