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Northumbria Research Link Northumbria Research Link Citation: Hatcher, Cara Jayne (2020) How do board directors of social housing providers ‘future-proof’ their decision-making capabilities in an ever changing landscape? A study of northern England housing associations/social housing providers. Doctoral thesis, Northumbria University. This version was downloaded from Northumbria Research Link: http://nrl.northumbria.ac.uk/id/eprint/44578/ Northumbria University has developed Northumbria Research Link (NRL) to enable users to access the University’s research output. Copyright © and moral rights for items on NRL are retained by the individual author(s) and/or other copyright owners. Single copies of full items can be reproduced, displayed or performed, and given to third parties in any format or medium for personal research or study, educational, or not-for-profit purposes without prior permission or charge, provided the authors, title and full bibliographic details are given, as well as a hyperlink and/or URL to the original metadata page. The content must not be changed in any way. Full items must not be sold commercially in any format or medium without formal permission of the copyright holder. The full policy is available online: http://nrl.northumbria.ac.uk/pol i cies.html HOW DO BOARD DIRECTORS OF SOCIAL HOUSING PROVIDERS ‘FUTURE-PROOF’ THEIR DECISION- MAKING CAPABILITIES IN AN EVER CHANGING LANDSCAPE? A STUDY OF NORTHERN ENGLAND HOUSING ASSOCIATIONS/SOCIAL HOUSING PROVIDERS C. J. HATCHER DBA 2019 HOW DO BOARD DIRECTORS OF SOCIAL HOUSING PROVIDERS ‘FUTURE-PROOF’ THEIR DECISION- MAKING CAPABILITIES IN AN EVER CHANGING LANDSCAPE? A STUDY OF NORTHERN ENGLAND HOUSING ASSOCIATIONS/SOCIAL HOUSING PROVIDERS CARA JAYNE HATCHER BSC (HONS) MRICS LLM PGHEP A thesis submitted in partial fulfilment of the requirements of the University of Northumbria for the degree of Professional Doctorate. Research undertaken in Newcastle Business School April 2019 Abstract The aim of this thesis was to determine the role of the board of directors of housing associations/social housing providers in decision-making and future proofing issues in the changing landscape. In 2015, the Government decided to impose rent reductions on the social rented sector and under the Welfare and Reform Act 2016 these were implemented. The thesis drew on a pre research field observation of a housing association board and unstructured interviews with board members in housing associations/social housing providers in the region of Northern England together with input from a former RICS President and current CEO of a housing association in the South of England. The work offers a number of recommendations around how housing associations/social housing providers can (as required) future- proof their provision whilst balancing the financial and social needs of their hybrid organisations. With the growing pressure on social housing providers, there was an awareness that these decisions impact on the core values of the social housing provider. The results showed a relationship between culture, decision-making, finance and funding and social. The social care and the customer (tenant) are at the heart of these housing associations/social housing providers even in the difficult changing landscape, however tough decisions have been made in an effort to safeguard the organisation. The thesis contributes to a wider academic and professional review of the hybrid nature of housing associations/social housing by determining whether there was a need to future-proof. Hybridity is slippery in its design and execution. Therefore it is recommended that, amongst other things, housing associations/social housing providers should regularly review their cultural working practices; make decisions around staffing, working practices and streamlining efficiencies in order to safeguard the organisation; explore other finance opportunities; and, include tenant empowerment in their decision making. These recommendations will be of assistance to the professional bodies such as the Royal Institution of Chartered Surveyors (RICS), Chartered Institute of Housing (CIH) and the National Housing Federation (NHF). Key Words Decision Making, Social Housing Provider, Housing Association, Culture, Mission, Social, Merger, Finance, Funding, Future-Proofing. List of Contents Introduction and the proposed area of research ...................................... 1 The initial process of research methodology .................................................... 2 1.1.1 Pre research field observation notes .......................................................... 2 Thesis scope and contribution............................................................................. 5 Research question ................................................................................................ 5 Context .................................................................................................................... 5 1.4.1 Housing associations/social housing providers ........................................ 7 Justification for chosen topic ............................................................................. 10 Structure of the thesis ......................................................................................... 12 The history and development of social housing ..................................... 13 Introduction ........................................................................................................... 13 Context of the chapter ........................................................................................ 13 What is social housing? ...................................................................................... 14 Housing need and philanthropy ........................................................................ 14 2.4.1 Octavia Hill and the Victorian movement – the impact of philanthropy 15 The progression to council housing .................................................................. 15 The 1920s and 1930s ......................................................................................... 16 Second World War to the mid 2000s ............................................................... 17 2.7.1 Size and number of housing associations nationally and in the area of study 24 Conclusions on Chapter 2 .................................................................................. 28 How do hybrid social enterprises make decisions in the changing landscape? .................................................................................................. 29 Introduction ........................................................................................................... 29 3.1.1 Key definitions .............................................................................................. 30 What is a housing association/social housing provider in the current landscape? ....................................................................................................................... 32 Housing associations/social housing providers as social enterprises ........ 34 3.3.1 Institutional theory and structure ............................................................... 38 3.3.2 Organisational behaviour and culture of the housing association/social housing provider .......................................................................................................... 42 3.3.3 Non-profit sector and its link to the third sector ...................................... 44 The complex hybridity of the housing association/social housing provider and the social enterprise ................................................................................................ 46 3.4.1 The third sector and the social enterprise ............................................... 51 Decision-making in the housing association/social housing provider ......... 53 3.5.1 Funding and finance ................................................................................... 56 3.5.2 Recent sector mergers and decision-making.......................................... 60 The role of governance ...................................................................................... 62 3.6.1 The UK Corporate Governance Code ...................................................... 65 3.6.2 Regulations of Social Housing .................................................................. 67 Future-proofing of housing associations/social housing providers .............. 74 Conclusions on Chapter 3 .................................................................................. 75 Research Methodology.......................................................................... 80 Introduction ........................................................................................................... 80 Epistemology and Ontology ............................................................................... 80 4.2.1 Areas for investigation ................................................................................ 81 Pragmatism .......................................................................................................... 87 Methodology ......................................................................................................... 89 4.4.1 Sampling ....................................................................................................... 92 4.4.2 Interview card layout ................................................................................... 94 4.4.3 Pilot interview
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