Housing Associations - Legal Status

Legal Status

Housing associations may constituted using various forms of legal entity. Many are Industrial and Provident societies, but there are also trusts, co-operatives and companies. They may or may not be registered charities.

"Registered social landlord" (RSL) is the technical name for social landlords that in England were formerly registered with the Housing Corporation, or in Wales with the Welsh Government. From 2010 to 2012, associations were termed "Registered Providers" under the Housing and Regeneration Act 2008, irrespective of status (private, public, for-profit or not-for-profit). As of 2012, the terms RSL and PRP (Private Registered Providers of Social Housing) are both used as alternative names for housing association.

Housing associations are generally considered as private entities in that they are not owned or directly controlled by the state. This status, however, has been challenged by a number of legal rulings in the last few years. In 2004 the British government accepted an EU ruling that considered housing associations as public bodies for the purposes of procurement.

More recently, the UK high court in Weaver v. London and Quadrant Housing Trust has ruled that housing associations were public authorities and as a result could be subject to judicial review in certain circumstances. The court stated that the Housing Association sector was 'permeated by state control and influence with a view to meeting the Government's aims for affordable housing, and in which RSLs work side by side with, and can in a very real sense be said to take the place of, local authorities'.

This issue has wider political significance since housing associations borrowing (which stood at approximately £30bn in 2006 ) does not currently contribute to the UK's public sector borrowing requirement, the control of which is both a stated government objective and part of the EU's criteria for membership of the European single currency.