Housing Associations - Helping People Afford Better Homes

Current times have seen a rise in the property market. While this may seem to be great news to existing home owners in relation to their property's values; to others this may end chances of having their own homes.

For people who are looking to own or rent a home, but are constrained by financial difficulties, consulting with local housing associations is the best option. These not-for-profit organisations are dedicated in assisting buyers and renters by providing reasonably priced homes that fit their standards of living.

Housing associations are the foremost provider of rental homes, offering a wide range of housing from large estates to small flats. Even most of supported accommodations for the elderly, the homeless, people with disabilities, and others with specific needs are provided by associations. They also offer shared ownership schemes aimed to help first time buyers, key workers, or basically households earning an annual income of 60,000 or less. Shared ownership allows prospective purchasers to buy only a percentage of the home and then pay the rest in rent. Schemes and percentages vary according to the various associations.

Funds for the associations are made from the rent and sale of properties and service charge payments made by those living in the properties. Any surplus funds would be used in the maintenance of the existing houses, or finance the building of new ones, or spent on new properties to expand their portfolio.

Every housing association has its own rules and regulations regarding who can apply for a home. To be considered, one can apply directly to the relevant association and be placed in a waiting list. Sometimes an applicant may be expected to wait until a tenant moves out or an owner decides to sell. Some associations will not consider applications unless specific qualifications are met; age, profession or income may not suit their nomination procedure to offer you housing. A number of associations may also prioritise applicants who have greater housing needs when a property becomes available. Other times criteria include living in a specific geographical area, or how long an applicant has resided in that area.

These associations were previously regarded as private entities in the sense that they were not owned or controlled by the state. However, in 2004, the UK Government has accepted the European Commission's view that Registered Social Landlords which includes Housing Associations are to be considered as Bodies Governed by Public Law and therefore must comply with the requirements of the EC Public Procurement Directives where relevant. As a result, the associations cannot remain as independent private bodies.

Moreover in 2008, the UK high court has decided that the associations could be subjected to judicial scrutiny on the basis that they were carrying out the Government's obligation in the providing social housing to the underprivileged, hence had to be made accountable for their performance.

On the other hand, with the recent steady climb of property values in the market. These associations still have very important roles to play to make certain that social housing is made available to all in need of affordable homes.