Making social housing allocation policy in absence of evidence: the section 5 myth

MHCLG consultation on statutory guidance is an opportunity to provide better advice on what works when allocating social housing. Much more robust evidence is needed about improving cooperation between local authorities and housing associations on allocations to homeless households.

There has been legislation requiring cooperation between local authorities and housing association in England for 30 years.

Section 170, of the Housing Act 1996 requires that housing associations reasonably co-operate with local authorities (in England and Wales) in offering accommodation to priority people under allocation schemes. This duty is separate to any nomination arrangements that a local authority and a housing association might agree.

Section 213 of the Housing Act 1996 stipulates that requests from local authorities in England require reasonable co-operation from housing associations in England, Scotland and Wales.

Section 213 was revoked for Welsh local housing authorities when the Housing (Wales) Act 2014 was passed. Section 32 Homelessness & Social Housing Allocation Act, once enacted, will allow a Welsh local authority to request a housing association offer suitable accommodation two homeless households, which must comply within a reasonable period unless good reasons exist. The housing association must provide requested information about any accommodation offered.

Section 32 has been directly influenced by section 5 of the Housing (Scotland) Act 2001 (which became law 15 years after the similar duties described above became law in England and Wales), which allows a Scottish local authority to request a (Scottish) housing association to provide accommodation for a homeless person, taking account of availability of housing. The landlord must comply within a reasonable period unless there is a good reason, typically via a Scottish secure tenancy. Landlords must answer reasonable information requests about the accommodation being offered.

Section 5 is important in Scotland, because local authorities that have transferred their social housing stock, do not have a responsibility to allocate social housing, the duty to hold a housing waiting list sits with stock retained local authorities and equally registered social landlords (with both types of social housing landlord having to follow the same social housing allocation legislation). Section 5 is crucial to ensuring that stock transfer local authorities are able to fulfil and discharge duties owed to homeless households. This of course is different in England and Wales, where the responsibility to allocate social housing sits with every local housing authority, irrespective of whether or not it is a provider of social housing. For those local authorities that have transferred their stock, the ability to fulfil and discharge homelessness duties is realised through the deed of transfer to the housing association that received the stock, which afford the local authority perpetual nomination rights. And, although housing association in England Wales have public law duties when allocating social housing, these are substantially different to those for local authorities. The difference in legislation between the nations means that section 5 is not as necessary for English and Welsh local authorities than it is for Scottish counterparts.

Research about section 5 referrals, published by the Scottish Federation of Housing Associations (SFHA) in 2026, founds that protocols for section 5 referrals exist between Scottish local authorities and Scottish housing associations, but confusion persists with how section 5 should work alongside nomination arrangements. The research recommended a model protocol for consistency. Most housing associations report effective local arrangements, though support packages remain contentious. A June 2025 survey of 130 SFHA members (33% response) found 7,528 section 5 lets in 2023/24. However, thirty per cent of Scottish housing associations reported that they do not use section 5; 55% report it works well. Research concluded that poor information quality and refusal rates undermine allocations made via section 5 referrals. Statistics on section 5 referrals understate Scottish housing associations contributions. The research recommends counting all routes to reflect full impact section 5 referrals. The research also found that where common housing registers are in place, it is not necessary to use section 5.

Despite the very limited research on the impact of section 5 in Scotland, and insufficient statistics on the results achieved from section 5, the Welsh government was persuaded to incorporate section 5 in early this year, and even before this legislation has come into to force in Wales, and before any evaluation has been carried out on the impact of this for Welsh local authorities and housing associations, the UK government has been persuaded to introduce section 5 into England.

There’s also an absence of qualitative or quantitative evidence as to the impact and results being achieved through section 170 and section 213 for English local authorities and housing associations. There’s lots of subjective opinions about the effectiveness of cooperation between local authorities and the housing associations, which too often are reported as authoritative and relevant facts. And, much misunderstanding about the fact that when making decisions about allocating social housing, housing associations are a public body. This means that decisions made by housing associations have to be rational, lawful and fair, just like local authorities. Decisions made by a housing association about social housing allocations can be appealed in court. The Equality and Human Rights Commission can investigate housing association decisions about social housing allocations when a person believes they have been discriminated against due to their characteristics. The Information Commissioner’s Office can investigate breaches of data protection legislation made by a housing association when allocating social housing. There a lack of awareness and understanding of all of these existing duties and rights, from local authorities, housing associations, social housing tenants and people applying for an allocation of social housing. Statutory guidance on the allocation of social housing, generally and specifically in relation to cooperation between English local authorities and housing associations, could be improved, MHCLG are currently consulting about updating their code of guidance. There has never been any statutory guidance on the allocation of social housing for housing association in England or Wales, nor is there any good practice advice. Unlike in Scotland, where there are publications aimed at both local authorities and housing associations.

An absence of proof as to the effectiveness of duties cooperate between local authorities and housing association is in England, means there is there is insufficient evidence to make a decision as to whether the legislation should be amended.

Given that there is proof that the Scottish section 5 isn’t as effective as it might be imagined to be, and there is an argument that common housing registers are at least equally effective as section 5, it seems irrational to be proposing new legislation to cooperation between English local authorities and housing associations, based on a myth. Especially as, the proposed legislation, when compared to existing law, doesn’t actually introduce any new duties or powers for English local authorities and housing associations nor does it change any rights already exist for homeless households or people applying for an allocation of social housing.

It also assumes that English housing associations are not doing their enough to provide housing to homeless households. However, this is not true. The total number of social housing lettings has reduced by 16% over the past seven years, during the same time, the number of lettings to homeless household has increased by 44% There are five times more homeless households on local authority housing registers, than social housing lettings made to homeless households. However, homelessness households make up 35% of housing register applicants with a reasonable preference, but equate to 50% of lettings made to households with a reasonable preference. Homeless household are the only reasonable preference group getting a greater proportion of social lettings than relative to their proportion on the housing register. There is no argument that homeless households should have a priority for an allocation of social housing. But, should this come at the expense of other households that also have a priority for an allocation of social housing, such as those occupying overcrowded, insanitary or otherwise unsatisfactory housing, or people who need to move on medical or welfare grounds (including disability grounds)? Because, for every additional social housing allocation made to a homeless household, there is one fewer allocation made to other people with an urgent housing need.

There is a case for making improvements to social housing allocation law in England. There are aspects of social housing allocation law from Scotland and Wales that should be introduced into England. Such as aspects of Scottish social housing allocational about how people should be prioritised for an allocation and be consulted on when changes are made allocation policy, and, aspects of Welsh social housing allocation law about common housing registers and accessible housing registers.

Introducing section 5 into England will not increase the number of homes available to allocate to homeless households. What’s needed to improve cooperation between local authorities and housing associations when allocating social housing to homeless households, is a much more robust evidence base from which to make reliable and authoritative policy decisions. A more informed and wide-ranging discussion needs to be about reforming social housing allocation law in England, that concentrates on better meeting the housing needs of everyone on housing registers, not just homeless households. More immediately, better guidance, advice, and regulation will help improve cooperation between English local authorities and housing association, than any change to legislation.