Discussion: Exploring the Changing Functions of Commercial Registered Service Providers
For-Profit Registered Providers (FPRPs) Expand Role in England's Social Housing Sector
For-profit registered providers (FPRPs) are making a growing, yet still relatively limited, contribution to addressing England's social housing crisis. These entities are officially registered and regulated as social housing providers, joining the ranks of non-profits and local authorities responsible for delivering social housing[1][2][4].
Recent data shows that some FPRPs, such as Cromwood Housing and Citra Pathways Limited, are actively involved in new social housing development[1][5]. For instance, Cromwood Housing has registered and is delivering 14 new homes. However, the broader housing supply crisis, marked by reduced planning permissions and a growing supply-demand gap, continues to challenge all providers[3].
Government intervention remains crucial, with the £39 billion Social and Affordable Homes programme set to support housing providers over the next 18 months. This programme underscores that while FPRPs add capacity, the primary driving force behind meeting social housing needs remains public funding and non-profit providers[3][4].
As FPRPs grow, they will have increasing exposure to regulation and non-profit housing associations, becoming progressively more integrated into the social housing sector[4]. The for-profit sector is becoming more professionalized, with stricter registration criteria and a wider range of players[6].
Quality homes and services should be the aim, regardless of the profit orientation. Long-term involvement in social housing is demonstrated by entities like Legal & General Affordable Homes and Octopus (through their NewArch RP). There is a need to invest more in building sustainable homes to reduce maintenance costs in the long run[7].
Collaboration between for-profits and non-profits is essential but is challenged by concerns about profits going to shareholders. Finding common ground is critical to ensure mutual benefits[8]. The Housing and Regeneration Act 2008 allowed for the creation of a class of FPRPs in England to help address housing supply problems[9].
By the end of 2024, FPRPs are estimated to own over 40,000 homes, with more than a quarter being general needs homes[10]. Campbell Tickell is offering support to funds and FPRPs in areas such as new registrations, regulatory advice, forming partnerships, and recruiting executives[11]. Some individuals on the boards of FPRPs are driven by a desire to make a valuable contribution to society[12].
The second joint event held by Campbell Tickell, Trowers & Hamlins, Devonshires, and Social focused on exploring joint working initiatives to find mutually beneficial opportunities[13]. The event highlighted the importance of sustainability in social housing's contribution to the 'S' in ESG for investors[14]. Regulators are treading cautiously due to concerns about profit-making and different funding models, but are also aware of the benefits of new entities committed to good service[15].
In summary, the impact of FPRPs at this time is supportive and incremental within a sector where public and non-profit efforts, backed by government investment, drive the major response to England's housing crisis. The growing emphasis on the quality of property management recognizes that building homes is only part of the solution - properties and communities need to be effectively managed, and residents need support[6].
- For-profit registered providers (FPRPs) are increasingly engaged in England's social housing sector, contributing to the delivery of new homes, as exemplified by Cromwood Housing and Citra Pathways Limited.
- Despite their efforts, the wider housing supply crisis persists, prompting a need for substantial public funding and continued involvement from non-profit providers.
- Quality and sustainability are key priorities for both for-profit and non-profit housing providers, with entities like Legal & General Affordable Homes and Octopus focusing on building sustainable homes to reduce long-term maintenance costs.
- Collaboration between for-profits and non-profits is essential, and events like the one held by Campbell Tickell, Trowers & Hamlins, Devonshires, and Social, emphasize the importance of sustainability in social housing's contribution to the 'S' in ESG for investors.
