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  1. #1
    Join Date
    Jul 2009
    Posts
    350

    Default Letting to (or setting-up) a Housing Association

    i am a private landlord

    i've been told that setting up and running a housing association is a good business venture

    however i know it's a not for profit organisation

    what would the advantages be? and is it worth all the effort?

  2. #2
    Join Date
    Dec 2008
    Posts
    1,141

    Default

    Hi

    There is no restriction on the use of the term housing association, so could have any company structure you wished, it doesn't have to be not for profit.

    However, what people commonly refer to as housing associations are registered with and regulated by the Tenant Services Authority (formerly the Housing Corporation). As a private landlord your chances of achieving registration are next to nil.

    There is then a category of non registered associations which are usually, as you say, not for profit (either industrial and provident societies or charitable). Often they have been set up by consortiums of lawyers, surveyors and developers to take on the freehold ownership and management of blocks or schemes that have been built for sale. The not for profit structure gives more confidence to the purchasers in the future management of the scheme,

    So, the key question is, what is it that you would want to achieve by setting up an association?

    Preston

  3. #3
    Join Date
    Jul 2009
    Posts
    350

    Default

    thanks for your help preston

    my overiding aim as an entrepreneur is to make £££ and set up profitable busiensses

    judging by your email, its not worth setting up a housing association is it? unless there were additional benefits that would lead to value enhancement elsewhere?

  4. #4
    Join Date
    Dec 2008
    Posts
    1,141

    Default

    Quote Originally Posted by Evergreen View Post
    thanks for your help preston

    my overiding aim as an entrepreneur is to make £££ and set up profitable busiensses

    judging by your email, its not worth setting up a housing association is it? unless there were additional benefits that would lead to value enhancement elsewhere?
    Well, I can't see any benefits in it for you I must say. I'm intrigued as to why your contact thought there would be really.

  5. #5
    Join Date
    Jul 2009
    Posts
    350

    Default

    he said something along the lines of, should i decide to sell the company/housing association in years to come, then i could pocket the capital gains on the property portfolio

  6. #6
    Join Date
    Dec 2008
    Posts
    1,141

    Default

    Quote Originally Posted by Evergreen View Post
    he said something along the lines of, should i decide to sell the company/housing association in years to come, then i could pocket the capital gains on the property portfolio
    Ah, I wonder whether he is getting at this. I'm guessing its a form of supported housing (called "independent living") let at above average rents to people with very high support needs. The lettings are usually long term, so there is the opportunity for stable incomes and long term capital growth. However, there are benefit problems which are very difficult to overcome these days without a separation between ownership and management.

    This doesn't need to be done through a housing association but it often is. Registered associations offer regulated standards and more security; non registered ones no doubt give the impression of this.

  7. #7
    Join Date
    Jul 2009
    Posts
    350

    Default housing associations

    hi all

    are there any landlords here that deal with housing associations?

    for example, buy land/property, gain planning and sell off to housing associations?

  8. #8
    Join Date
    Jan 1970
    Posts
    0

    Default

    Two separate threads by same member have been merged here. Do not cause problems by starting continuation threads; use the same one.

  9. #9
    Join Date
    Sep 2006
    Location
    Sheffield
    Posts
    39,409

    Default

    Quote Originally Posted by Evergreen View Post
    Are there any landlords here that deal with housing associations?

    for example, buy land/property, gain planning and sell off to housing associations?
    Is this question associated with your earlier question?
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

  10. #10
    Join Date
    Feb 2006
    Posts
    3,343

    Default

    This thread provokes me to recount something I saw on the results of a commercial auction website.

    What looked like a residential new build home used for accomodation for learning needs residents was for sale . The Vendor was the 'company' involved in the housing scheme, and the lease was to be granted new to the same company at a rather good rent for 10 years, making what seemed to be an attractive investment (Final sale price gave over 10% yield)

    Cant help thinking that the rent level was set rather high so that the sale price would be inflated as much as possible. Perhaps then the company might go into liquidation so no need to honour rent.
    All posts in good faith, but do not rely on them

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