A major shake-up of charity law is set to benefit housing associations. The changes include a new status for not-for-profit social enterprises
A consultation paper produced by the Cabinet Office's strategy unit late last week proposes a new legal form of enterprise, the "community interest company", which would have legal protection against demutualisation. Assets and profits would be "locked in" for social purposes.

Catherine Hand, partner at law firm Jenkins &Hand, said the new status, yet to be set out in detail, may help to remove the corporate stigma faced by RSLs by clarifying their role and status in the public eye. She added this would further the work of the Housing's Better Future branding campaign.

National Housing Federation deputy chief executive James Tickell welcomed the report but said the provision of affordable housing should be recognised as a charitable purpose in its own right. More detail on how community interest companies would be regulated was needed, he said, suggesting an existing body, such as the Housing Corporation or a reformed Charities Commission, could do this.

The Cabinet Office report also castigates the "under-use" of the industrial and provident society model. But critics blamed this under-use on expensive registration costs – more than £1000 when registering with Companies House costs only £35.

An industry insider suggested that the community investment company and industrial and provident status could be merged to streamline the process.

  • Read the consultation paper at www.strategy.gov.uk

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    Housing Today