Posted02.01.25
What is a housing association, and how can you also be a charity?
Housing associations play a vital role in providing affordable homes across the UK. Particularly in cities like London where the cost of living continues to rise. But what exactly is a housing association? And how can such an organisation also be a charity?
A housing association is a not-for-profit organisation that provides affordable homes for people who cannot afford to buy or rent at market prices. Housing associations offer a range of housing options. This includes social housing, which is rented at below-market rates. shared ownership schemes, where individuals can part-buy, part-rent a home. Or affordable rent properties, where rent is set at up to 80% of the market rate.
Housing associations are independent from the government, but they often work closely with local authorities to meet housing needs. Housing associations are responsible for the management and maintenance of their properties. Many also offer additional support services to help tenants sustain their tenancies and live independently.
Many housing associations are also registered charities. This dual identity allows them to combine their role as housing providers with a broader charitable mission. Which may be focused on cutting poverty, reducing homelessness, and improving the lives of their residents. Being a charity means these organisations are governed by charity law. They must reinvest any surplus they make back into their core mission. For example, by building more homes, improving services, and supporting communities.
As charities, housing associations cannot operate for private profit. Any surplus income they generate from rent or property sales is reinvested. This could be by building more homes, maintaining existing properties, or providing support services. This ensures that the organisation’s focus remains on benefiting the public and not on delivering returns to shareholders. Unlike private property developers.
The charitable objectives of housing associations typically align with providing affordable housing and improving the well-being of their tenants. Many housing associations provide support services that go beyond housing. Such as mental health support, employment training, and financial advice.
As registered charities, housing associations must demonstrate that their activities provide a public benefit. In this context, the public benefit is the provision of affordable, secure homes for people who might otherwise struggle to find housing in the private market. This benefits not only individual tenants but also the wider community, helping to reduce homelessness.
The charitable status of many housing associations allows them to access additional funding sources. This could be grants and donations, that may not be available to purely commercial organisations. This extra funding can help housing associations deliver more homes and expand the range of services they offer. Which will benefit their residents and communities.
