Landlords and tenants across the country have been left in a state of uncertainty with the Government announcing the closure of two bodies that were closely entwined with the housing sector.
Chancellor of the Exchequer, George Osborne, revealed that he is to abolish the Financial Services Authority (FSA) by 2012. The news coming shortly after the Government decided to pull the plug on the Tenant Services Authority which acted as the regulator for social housing
The FSA was the body that bigger landlords such as housing associations had to register with to conduct their business. Rules, any amendments to them, any changes in structure along with filing annual returns were all notifiable to the FSA and as yet the new Government has not indicated what will take its place.
Law experts are concerned that bodies such as the Charities Commission or for that matter Companies House are not in a position to give the same sort of service the FSA provided.
Emma Tarran partner for governance and charities at law firm Trowers and Hamlin said it was inconceivable that the role of the FSA would not be replaced “Because it is an important one and would need a fundamental change of law to alter it’.
She went on to say: ‘The issue of who the registrar is will affect a lot of housing associations.’ She added that the Charities Commission would not be able to carry out the function because some housing associations are not charities.
Some experts also believe that Companies House would encounter problems taking over the role because it is unfamiliar with the regulations surrounding non-profit making organizations.
A spokesman for the FSA tried to quell any fears about the situation by saying “All the finer details of the changes have yet to be resolved. We will work closely with the government to minimise disruption”
It would appear that in the short term at least, professional landlords will have a little more to worry about than the renewal figure for their landlords insurance.