The number of RSLs will fall, says Hill

Housing minister Keith Hill has admitted that the government expects there to be fewer associations, despite denying ever taking part in discussions on reducing the number.

Replying to a question at Housing Today’s Big Debate event in London last Thursday,

Hill said: “You cannot expect me to say that we have to continue with the 2500 RSLs currently in existence.” But he added: “At no stage as the housing minister have I ever been engaged in discussions about reducing the number of housing associations.”

Hill extolled the “powerful” benefits of greater partnering between housing associations, but also said he “recognised the focused work which many registered social landlords are able to engage in”.

“That’s why we are happy to see the Housing Corporation doing a lot of work supporting and funding black and minority-ethnic registered social landlords,” he said.

Hill declined to say how many associations would be cut despite being pressed by Conservative housing spokesman John Hayes. Hill said: “It’s not for me as a minister to lay a line down on this.”

The minister’s response cut no ice with Linda Milton, chief executive of 335-unit Waltham Forest Housing Association, who had asked the question. She called it “a load of twaddle”.

Regeneration minister Lord Rooker has said in the past that there are too many housing associations, especially in the housing market renewal pathfinder areas.

Hayes advocated an expansion of the number of housing associations. He said: “The more focused, specialised and accountable to users an RSL is, the better they are likely to be. I know the Housing Corporation position has been to fund a smaller number of large providers. My vision for the future is that, rather than a consolidation of bigger organisations, we should be looking at a flowering of diversity in the sector with local organisations accountable to local people.”

Hayes said local authorities should “work with the private sector to bring outside investment into all sorts of housing work”.

Earlier in the debate Liberal Democrat housing spokesman Ed Davey said it was time to “embrace the fourth option because there are local authorities that can do that very well”.

He said the Treasury “does not trust local authorities” so it was difficult for councils to borrow to upgrade their stock.