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What is considered best practice in selecting and partnering with Registered Social Landlords (RSLs)?

This section considers how to invole RSLs as partners for affordable housing delivery and management and the importance of maintaining good working relationships.

Introduction

Registered Social Landlords are widely acknowledged as being the best mechanism for ensuring that homes remain affordable in perpetuity. When Social Housing Grant is used to subsidise Section 106 affordable housing it is easier for a local authority to specify which RSL will deliver the affordable housing on a given site. However, developers inevitably horse-trade between Registered Social Landlords in an attempt to secure the best price for the affordable housing.

There are 3 accepted ways for an RSL partner to be selected for any given scheme:

The local authority can put forward a list of preferred RSLs and ask the developer to choose one from this list.  If the developer does not find any on the list acceptable, it can go back to the authority to discuss alternatives.  The final RSL will be selected as a result of negotiations between the authority and the developer.

Do not limit discussions with RSLs to development issues. Include the marketing, nominations and management of affordable homes.The local authority suggests its preferred RSL to the developer.  If the developer does not accept this choice, it can go back to the authority to discuss alternatives.  The final RSL will be selected after negotiation.

The local authority develops a set of criteria which RSLs meet and the developer selects one that meets the criteria.

What makes for a good relationship?

  • Good working relationships and regular meetings between authorities and locally active RSLs to keep both parties up to date about the issues they face across both the development and management of affordable housing. 
  • Protocols which guide the relationships between local authorities, RSLs and developers. 
  • Discussing how affordable housing can be provided and long term management arrangements secured. 
  • Asking for information on their standards (e.g. development, management, local presence, cost) to outline the importance of this but you should be able to robustly justify rejecting any particular provider on the basis of these standards.
  • Early dialogue between developers, the local authority and potential RSLs can help to ensure the RSL is acceptable to all parties.  It is important that the interests of RSLs are taken into account in scheme specific negotiations, whether there is a known RSL involved in a scheme or not.

Where the RSL is known, it is good practice to involve them in all matters that affect the affordable housing elements of a scheme and its longer term management, as they have to minimise their own development risks and subsequent management responsibilities. This includes involving them in negotiating any planning obligation even though they are not a formal signatory to it.Other options

In some areas, local authorities enter into agreements with developers which split the development and management roles between RSLs and other appropriate bodies.  In such cases the authority can accept the developer’s choice of partner for the delivery of the affordable units, while the management of the units is subsequently undertaken by a different organisation approved by the local authority.

Further guidance is given in the CLG, Delivering Affordable Housing (2006).  Web link >>

The Golden Triangle Affordable Housing Good Practice Manual (November 2005), prepared for the Housing Corporation, provides more on RSLs.Web link >>

See Partnership between developers and RSLs Chelmsford Borough Council Best Practice

See The HARI S106 Code of Conduct Three Rivers Council and Watford Council Best Practice

  1. How can effective negotiation with developers be ensured (including working on larger projects)?
  2. What will the developer's financial considerations be when negotiating planning obligations?
  3. How should scheme viability be assessed to ensure the affordable housing requirement on a given site is appropriate and deliverable?
  4. How should the uncertainties of grant funding be overcome in agreeing the provision of affordable housing?
  5. What is considered best practice in resolving valuation/viability disputes?
  6. When is it appropriate to use commuted sums or developer contributions for off site provision and how should they be calculated?
  7. What is considered best practice for the preparation and use of planning obligations through Section 106 agreements, to secure affordable housing?
  8. When is it appropriate to use planning conditions in securing affordable housing?
  9. Will affordable housing be a component of the Community Infrastructure Levy (CIL)?
  10. What is considered best practice in selecting and partnering with Registered Social Landlords (RSLs)?