For-profits to get new code of governance 

A number of high-profile partnerships have also emerged, including G15 landlord Hyde linking up with M&G and, in a separate deal, with French insurance giant AXA. 

Mr Beiley, who is a partner at law firm Trowers & Hamlins, said there were “a lot more” of these types of deals “coming down the track” as housing associations aim to build homes while facing challenges such as building safety and decarbonisation. 

The idea for the code is raised in a new BPF toolkit aimed at helping “demystify” how partnerships between investors and traditional housing associations can work.

Mr Beiley suggested the toolkit could be helpful for “mid-sized” housing associations, who still want to develop homes but lack knowledge around the for-profit sector. 

“Part of the problem is that associations are being inundated with offers – there are pitches coming from developers and institutions all the time,” he said.

“There are different ways you can go about partnership working with an institution, so it’s really hard for organisations to see the wood for the trees.”

Currently there is not a code of practice for for-profits that “really speaks” to the emerging sector, according to Mr Beiley. 

“If you look at the accounts of the for-profits, there’s pretty much a 50/50 split between adopting the UK corporate code and adopting the National Housing Federation Code of Governance,” he said. 

“But the UK corporate code doesn’t talk to accountability of residents. And then equally, the National Housing Federation code doesn’t really talk to the commercial realities of being a for-profit provider.” 

The NHF code, which was updated in 2020, is aimed at offering a “baseline for excellent governance” and includes areas such as resident focus, culture, equality and diversity. 

In terms of how the new for-profits code will work, Mr Beiley said he hoped it would become a requirement to be signed up to it under the Regulator of Social Housing’s (RSH) standards. 

“Effectively the concept is that it’s self-policing. If you don’t comply with an element of code, you either explain why you’ve not complied with it, or you publish a statement saying you’re not complying and the reasons why,” he said.  

“If you have a published code of governance, and you then publicly say we are adhering to it that will provide everybody with confidence.” 

Among those also on the BPF’s affordable housing committee are Simon Century, managing director for housing at Legal & General, who is vice-chair; Chris Jeffs, a fund manager at M&G Real Estate; and two executives from Blackstone-backed Sage Housing: Lucian Smithers and Rizwan Khan. 

It is understood the BPF has spoken to the RSH about the idea of a code. 

An RSH spokesperson said: “We welcome initiatives by the social housing sector to promote good governance. 

“We expect all registered providers to meet our Governance and Financial Viability Standard, regardless of their business model. All private registered providers should be well governed, financially viable and provide safe and good quality homes for their tenants. 

“We require registered providers to adopt and comply with an appropriate code of governance.”

The idea of allowing significant amounts of private capital into the social housing sector has been criticised in some quarters. 

But Mr Beiley said: “Housing need in the country is so acute I think housing associations and local authorities need the firepower of the big institutions to really make a difference.”  

Mr Beiley said he hoped the code would appear this year and to “watch this space”.