Written evidence to be reported to the House
Housing and Regeneration Bill
4:30 pm
David Orr: They are not public bodies, and it would be in no one’s interests for them to be classified as such. The state has invested about £30 billion in the work of housing associations, which has been matched by about £35 billion of private borrowing. If housing associations were classified as public bodies, all that private borrowing would be classified as public money, so there is no gain for anyone in associations being classified as public bodies.
We tend to make the issue more difficult than it is. We have private sector organisations that exist to provide dividends to shareholders; their purpose is to make profit. We have public bodies that do as they do because they are owned and invested in by the public and the state. Housing associations are bona fide third-sector organisations—not-for-profit social purpose organisations—and it is extremely important that that status is protected. There is a danger in reclassification. If it was deemed that the regulator could direct the entity or organisation in its constitution or its behaviour, there would be a real threat to housing associations remaining non-public.