There are around 25.4 million homes in England. Around 17.6% (4.46 million) are “affordable housing” made up of:

·       Local authority owned (aka Council Housing) – 1.57 million homes

·       Private Registered Providers of Social Housing – 2.89 million homes

The majority of the Private Registered Providers of Social Housing (RP’s) sector is made up of non-profit making and charitable Housing Associations who own  around 2.86 million homes (99% of the RP sector).

The major changes in the RP sector over the past decade have been:

·       Increase in rent levels with the introduction of the awkwardly named “Affordable Rent” price point – In 2002 a rent convergence programme was introduced which set plans for all RP’s to move rents to a Target Rent (aka Formula Rent, aka Social Rent) over a ten year period. The target rent was based on a function of the value of the home (as at January 1999 levels), the number of bedrooms in the home and the county of the home, plus an annual indexation.  This made target rents independent of market rents, but in 2011 “Affordable Rent” was introduced which set rents up to 80% of market rents, which can be materially higher than the previous target/social rent level.

·       Introduction of for-profit Registered providers – The Housing and Regeneration Act 2008 allowed for-profit making organisations to seek Private Registered Provider of Social Housing status. As at July 2024 there were 74 for-profit RP’s registered with the regulator of social housing, owning around 30,000 homes.

·       Change in delivery channels of new affordable housing – In the 5 years from April 2018 to March 2023 290,000 new affordable homes have been built, of which 46% (132,000) were delivered via nil-grant section 106 planning gains where housing developers need to build some affordable homes as part of wider new developments.  Similarly over the 5 years from April 2007 to March 2012 287,000 affordable homes were built, but only 9.4% (27,000) were via nil grant section 106 gains.  The other major delivery route is grant funded housing development which has dropped over the last 10 years.

·       Consolidation of registered providers – XXXXXXXXXXXXXXXXXXXXXXXX.