Social housing entities entering into finance transactions
Produced in partnership with Neil Waller of Trowers & Hamlins LLP
Social housing entities entering into finance transactions

The following Banking & Finance guidance note Produced in partnership with Neil Waller of Trowers & Hamlins LLP provides comprehensive and up to date legal information covering:

  • Social housing entities entering into finance transactions
  • Nature of social housing entities
  • Regulation of social housing entities
  • Capacity issues to be considered in finance transactions
  • Community Benefits Societies
  • Companies and others
  • Capacity issues arising on particular types of finance transaction
  • Security
  • Guarantees

This Practice Note explains the nature of social housing entities, how they are regulated and the regulatory, corporate and charity law issues that need to be considered when social housing entities enter into finance transactions.

Nature of social housing entities

Nearly all housing associations that raise private finance in England are regulated as ‘Registered Providers’ of social housing. This means that they are registered with the Regulator of Social Housing in England. In Wales, the Welsh Government performs this function and housing associations registered with them are known as Registered Social Landlords (RSLs).

In England, registered providers are divided into private providers and local authority providers. The category of private providers is then sub-divided further into not-for-profit and for-profit providers. To date, private for-profit providers and local authority providers have not raised significant amounts of finance in their own right compared to not-for-profit providers. This Practice Note purely focuses on private not-for-profit providers of social housing registered in either England or Wales, referred to in this Practice Note as ‘RPs’.

RPs may have a number of different corporate statuses and although most of them have charitable status, this is not always the case.

Most RPs are structured as Community Benefit Societies, registered under the Co-operative and Community Benefit Societies Act 2014 (CCBSA 2014). A few organisations are structured as companies limited by guarantee,

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