Trowers & Hamlins

The publication of new guidance for charitable housing associations ends the uncertainty left following the publication of draft guidance last September. However the guidance could go further in clarifying who can be offered affordable home ownership by charitable housing associations, warns City law firm Trowers & Hamlins.

Affordable Home Ownership – Charitable Status and Tax seeks to guide charitable housing associations in identifying those to whom they can offer affordable home ownership.  Published jointly by the Charity Commission, Housing Corporation and HM Revenue and Customs, the guidance seeks to clarify the tax and legal implications of this activity.

Emma Tarran, Partner at Trowers & Hamlins comments "The draft guidance included a helpful table of regional average house prices and incomes to assist trustees in assessing the household incomes of those applying for affordable home ownership schemes.  Changes made in to the wording of the final guidance make the intended function of this table less clear, and it may therefore be a less useful tool for charitable housing associations than was hoped."

Before the draft guidance was issued no official advice on this subject had been issued since 1994.

Emma Tarran says "The role of housing associations has changed considerably since 1994 and the publication of new guidance is helpful."

"On the whole this guidance should prove helpful for charitable housing associations.  At the same time we would hope that the regulators will invite comments in order to help make the guidance as clear and constructive as possible."

"The Government has pledged to help deliver 180,000 affordable homes over the next three years.  Housing associations will play a major role in reaching this target. Bearing in mind that a high proportion of housing associations are charities, it is imperative that they are supported in this.  The production of clear guidance by these regulators is an essential part of delivering that support."