Housing associations warned over sleepwalking into market rent

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

A senior housing figure has warned housing associations that just because they have core competencies in managing social housing, it doesn't mean they have the right skills and staff to deliver market rented products.

Chris Withnall, general manager at Midlands-based Lyng Community Association - and previously a director at Sanctuary Housing - fired the warning at a 24housing magazine roundtable last week on diversification.

New housing minister Mark Prisk is keen to see housing associations cross tenure and deliver homes for market rent as well as continuing to build homes for those most in need.

However, Mr Withnall said social landlords need to be "very careful" about diversification into other business streams and ensure they don't delude themselves about the skills they have to manage them.

He said: "If any organiation is going to move into something which is outside their core competency of managing social housing, it has to be very sure it's got the right management and front line skills to deliver those services. I find one of the best ways to do that is to buy those in. Market rent is a classic. To think that housing staff who have been working in the social housing sector for 10 to 15 years can then provide services the next day for a different client group with different demands just doesn't work."

He said diversifying into care was another example.

"That's a very commercial business where you have to be very thoughtful about managing your cost base to generate margins," he said. "You can't just transfer skills in social housing into other business streams. If you are going to diversify, buy in the skills to do it."