New code of governance for for-profit registered providers of social housing

Posted: 29/07/2024

The British Property Federation (BPF) recently launched its Code of Governance for For-Profit Registered Providers of Social Housing. It has established a set of standards to promote good governance, which apply to all relevant providers in this sector.

The new code focuses on seven key themes:

• leadership and strategy;
• culture and values;
• board composition and effectiveness;
• board roles and functions;
• delegation and delivery;
• integrity and probity; and
• audit and risk.

While there are some differences between the new code and the existing National Housing Federation Code of Governance 2020, the most apparent modification is the four ‘principles’ in the existing code, compared to the seven set out above. However, much of the content remains the same. The BPF itself confirms it has drawn up the new code in reference to existing codes of governance within the sector. Both codes of governance strongly focus on the need to protect tenants, with this being identified as ‘an overriding priority’.

It may be more significant to focus on why the sector needs a new code specifically for FPRPs now. Knight Frank’s Affordable Housing Report found that it expects the number of homes owned by for-profits to triple by 2028. Similarly, the report found that FPRPs now own 29,272 affordable homes, a figure that has increased by 40% since 2022.

Existing registered providers are facing sizable challenges, including the need to reinvest in their existing stock to ensure the safety of their tenants, planning barriers, net zero targets, increased regulatory compliance and difficulties with grant funding, to name but a few! Consequently, the sector has seen less investment in developing new homes. Developers are, therefore, looking to plug the gaps left by not-for-profit registered providers. A third of FPRPs are now directly linked to developers.  

Much of the concerns in the sector have been addressed in the King’s Speech, with promises of ‘turbocharging housebuilding’ and the ‘biggest boost to affordable housing for a generation’. It will be interesting to see if the growth in the number of FPRPs continues in the new housing landscape.

This article was co-written with Lucy Norton, trainee solicitor in the housing team.

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