Housing associations are independent not-for-profit organisations that own and manage affordable housing for rent and shared ownership. They are the primary providers of new social and affordable housing in England and operate alongside local council housing to meet the need for below-market-rate accommodation.

What Housing Associations Do

Housing associations build, own, and manage housing that is let to tenants at rents below the open market rate, or sold on a shared ownership basis that makes purchase affordable to people who could not buy on the open market. They manage a combined stock of around two and a half million homes in England, making them collectively much larger than the remaining local council housing sector. Housing associations range from small community-based organisations with a few hundred properties to large groups managing tens of thousands of homes across multiple regions.

How Housing Associations Are Funded

Housing associations fund the development of new homes through a combination of government grants from Homes England, private borrowing against their existing property portfolio, income from rents and service charges, and receipts from shared ownership staircasing and sales. They do not receive direct funding for day-to-day operations from the government; they are self-sustaining organisations that generate income from their housing activities.

Regulation

Housing associations in England are regulated by the Regulator of Social Housing, which sets standards for governance, financial viability, and the quality of housing and services provided to tenants. The regulator has powers to intervene in housing associations that fail to meet the required standards and can appoint new management or require mergers where serious failures occur.

The Difference Between Housing Associations and Councils

Both councils and housing associations provide social housing, but they operate under different legal frameworks and governance structures. Councils are directly elected public bodies; housing associations are independent registered providers. Most new social housing built in England is now developed and managed by housing associations rather than councils, following the large-scale transfers of council housing stock that occurred from the 1990s onward. Councils retain some housing stock and continue to operate housing waiting lists and allocations in most areas.

Summary

Housing associations are not-for-profit organisations that own and manage affordable rented and shared ownership housing. They are the largest providers of new social housing in England, regulated by the Regulator of Social Housing. Funding comes from government grants, private borrowing, and rental income. Applications for housing association tenancies are typically made through the local council's housing register.