In late June the British Property Federation (BPF) published a Code of Governance for for-profit affordable housing providers. This culminates almost a year of work on a Code, working in conjunction with management and recruitment consultancy Campbell Tickell and an advisory group of investors and advisors.

The BPF says that the Code establishes a set of standards which “embody and aim to promote good governance practice” in the for-profit registered provider (FPRP) sector in England. It has been prompted in part by the increasing role of institutional investment (which is often backed by pension fund capital) – largely via FPRPs – in the sector in the provision of affordable housing.

The BPF stressed that its members – who chiefly comprise the great and the good of the UK’s real estate sector – recognise the importance of good governance in safeguarding the interests of shareholders, customers, and other stakeholders, and in protecting the reputation of the property sector.

The industry body represents and promote the interests of all those with a stake in real estate in the UK, including owners, developers, funders (equity and debt), agents and advisers and is largely the organisation that liaises with and lobbies the government.

In its new code, the BPF covers leadership and strategy, culture and values, board composition and effectiveness, board roles and functions, delivery of strategy and service, integrity and probity, and audit and risk.

“Housing is essential to the UK’s economic and social prosperity. Pension funds are a key source of new capital for delivering homes and, as we set out in our manifesto for housing, Building for Generations, our offer to the Government is to deliver a step change in output of homes across all tenures, including affordable housing,” says Ian Fletcher, Director of Policy at the BPF, of the launch of the publication. “The publication of a Code of Governance for For-Profit Registered Providers provides a framework that will enable providers to demonstrate to stakeholders the highest standards of good governance and positive stewardship of affordable housing.”

Greg Campbell, partner at Campbell Tickell, who drafted the code with colleague Ceri Victory-Rowe, says that while the existing codes of governance used by many organisations in the sector, such as the National Housing Federation Code, the UK Corporate Code and ecoDa, all have particular strengths, none of them was felt to be quite right for FPRPs.

“In recognising the distinct elements of these organisations while ensuring a commitment to the highest standards in governance for the regulated social housing sector. This code is designed to fill that gap, and we are confident it will be welcomed by FPRPs,” he says.

The BPF’s view is clearly that there is a shift in the financing of affordable housing and that as such institutional investment is likely to form a cornerstone of the new government’s delivery plans. In order to attract that necessary investment, the institutional bodies, which typically work to high standards of governance and financial scrutiny, will need to be convinced of the governance structures in place across the affordable housing market.