Written by Ryan Blair, Managing Director of Highlight Housing, and former COO of a For Profit Registered Provider
The Growing Influence of FPRPs in the UK Housing Sector
The UK’s affordable housing sector has traditionally been led by not-for-profit organisations committed to providing low-cost social housing and support for people in need of a home. However, the increasing presence of For-Profit Registered Providers (FPRPs) has sparked debate about their role in the sector.
Concerns around profit motives, long-term affordability, and tenant protections are valid. However, in my experience, well-governed FPRPs complement rather than compete with not-for-profit providers, bringing investment, operational expertise, and commercial discipline that support the sustainable delivery of affordable housing.
FPRPs Operate Within the Same Regulatory Framework
A common misconception is that FPRPs operate outside the stringent regulatory framework that governs not-for-profit providers. In reality, FPRPs must comply with the same standards. They must demonstrate effective governance, financial viability, and adherence with consumer standards set by the Regulator of Social Housing (RSH).
Regulatory standards apply to all social landlords, including councils, housing associations, and FPRPs. These standards require landlords to ensure tenant safety, respond to complaints effectively, be accountable and treat tenants fairly, maintain good-quality housing, and use data to improve services. The RSH inspects larger landlords regularly, monitors key performance data, and uses enforcement powers where necessary to ensure compliance.
Governance and Compliance in Practice
As part of the executive team at Auxesia Homes, we worked closely with the Board of Directors and the Regulator of Social Housing to achieve full compliance with regulatory standards. This involved implementing a governance action plan to strengthen financial resilience, enhance risk management, and embed transparent decision-making processes, ensuring the Board were fully aware of the risks before taking on any new liability.
This experience demonstrated that effective governance and commercial discipline can coexist within a for-profit model, ensuring financial sustainability without compromising regulatory compliance or tenant protections.
Unlocking Investment to Scale Up Affordable Housing
FPRPs bring capital investment, commercial expertise, and operational efficiencies that increase the supply of affordable homes. Their ability to attract institutional funding, which may not otherwise be invested in the sector, reduces reliance on public finances and enables more homes to be delivered.
Unlike traditional not-for-profit providers, which often incorporate government grants into their development strategy, many FPRPs use alternative investment models. This broader funding base makes it possible to deliver homes at scale.
Collaboration Between FPRPs and Housing Associations
FPRPs should not be seen as a threat to not-for-profit housing associations but can act as a stabiliser in the market. By taking on development and sales risk, they enable the creation of additional homes that can either be held long-term or transferred to a local not-for-profit housing association for ongoing management.
For the sector to be truly effective, FPRPs and housing associations must collaborate. FPRPs increase the pace and scale of delivery by leveraging institutional capital and alternative investment methods beyond what is possible through grant funding alone. Meanwhile, not-for-profit providers bring sector expertise, long-term stewardship, and community-focused management, ensuring that homes remain affordable, well-maintained, and resident-focused.
By working together, these organisations can create a more resilient, diverse, and financially sustainable housing sector where risk is shared, capacity is maximised, and more homes are delivered to meet growing demand. This approach supports long-term affordability and tenant security, allowing homes to be developed efficiently, transferred where appropriate, and managed effectively to benefit residents and communities.
Scotland: A Missed Opportunity?
Unlike in England, FPRPs are not permitted to operate in Scotland, removing a potential source of funding and expertise from the sector. This restriction places greater pressure on public funds and rental income to finance new affordable housing.
The stigma surrounding FPRPs may be limiting Scotland’s ability to access additional investment that could help deliver homes more quickly and at a greater scale. By excluding FPRPs, the sector risks over-relying on taxpayer funding and rental revenue rather than diversifying its financial model.
Instead of focusing on ownership structure, the emphasis should be on outcomes, ensuring that providers deliver affordable, good-quality, and sustainable homes. If FPRPs can demonstrate these values in England, they should be recognised as part of the solution in Scotland rather than a risk to the sector.
Measuring Success by Impact, Not Structure
For me, the most important measure of any provider is how well it delivers on its purpose. Whether for-profit or not-for-profit, providers should be assessed based on their ability to scale up housing delivery responsibly, maintain strong governance and financial oversight, operate transparently, and ensure tenant well-being remains at the heart of their operations.
From my experience, a well-managed, financially stable FPRP can add significant value to the sector. Rather than debating corporate structure, the focus should be on delivering affordable, well-managed, and sustainable homes at scale.
A Collaborative Future for Affordable Housing
The key challenge is not who delivers affordable housing but how to ensure more homes are built, maintained, and made available to those who need them most. Both for-profit and not-for-profit providers have a role to play, and through collaboration, accountability, and a shared commitment to affordability, we can create a stronger, more inclusive housing sector that works for everyone.