There’s never been a better time to bridge the for-profit/non-profit divide

For non-profit RPs, there was some understandable early wariness. Could you really be a housing association and make a profit?

That has changed and it continues to change as FPRPs become an ever more integral part of the sector. For non-profit RPs, many of which are finding the market especially challenging due to regulatory and cost pressures, now could be a good time to re-evaluate the for-profit proposition and the investment capital that many FPRPs bring to the table.

For agile non-profits, partnering with or even creating FPRPs could unlock rewarding opportunities to offload unviable stock, collaborate in value-generating joint ventures or forge long-term contractual agreements.

“Key to successful collaboration is commonality of culture and objectives. Parties should consider their strategic goals and assess the long-term benefits that collaboration might bring”

Engaging with FPRPs could bring both risks and opportunities for non-profit RPs of course, so it’s important for non-profits to take a step back to ensure they understand how the sector has evolved.

In the early days, most FPRPs were focused on scaling quickly, which usually meant buying existing stock either from other RPs or by buying Section 106 units from developers. Nowadays they are just as likely to be interested in collaboration opportunities where non-profit RPs might be looking to reshape their portfolios, for example, or to develop more social homes to meet growing demand.

Many successful examples of collaboration exist in the marketplace – from creative asset transfers where the non-profit retains responsibility for managing units, to joint ventures focused on delivering large-scale affordable housing developments.

Octopus-backed NewArch Homes acquired 220 tenanted homes in Essex from housing association Chelmer Housing Partnership (CHP) in April 2025. Staff from the non-profit organisation stayed on to manage the homes, protecting the interests of tenants and ensuring continuity of services.

NewArch is a great example of the growth of this part of the sector. It has continued to grow rapidly, and now owns and manages nearly 1,000 homes.

For non-profits considering collaborating with a FPRP for the first time, or even setting up their own, there are many factors to consider.  The main one is, “What does the FPRP bring to the table that we can’t do ourselves?” Some key things would be:

• Another route to capital other than debt or grant
• More flexibility in what they can do
• As newer entrants, they are likely to have fewer liabilities in terms of current stock and so more cash to hand

It’s also important to consider how you want to work together. There are broadly two models. The first could be described as ‘transactional’ – a one-off deal, perhaps with a non-profit selling an asset to reinvest or refocus on a different geographical location, and the FPRP acquiring a capital asset and income stream from it.

The second is ‘relational’ – the NewArch-CHP model above is a great example, but we are increasingly seeing more complex arrangements as the market matures.

Key to successful collaboration is commonality of culture and objectives. Parties should consider their strategic goals and assess the long-term benefits that collaboration might bring. Being clear about what each side wants from the collaboration at the outset is critical to a successful outcome.

With new regulation on the horizon, such as the Social Tenant Access to Information Requirements scheme and the Future Homes Standard, collaboration in the sector is bound to play an increasingly important role. The combination of FPRP capital and flexibility and non-profit experience and expertise could be a real game-changer.

All this means there has probably never been a better time for FPRPs and non-profits to explore opportunities to cement their shared purpose and start talking about how they can do things better together.

Digby Morgan, partner in the housing and property team, Anthony Collins