The Charity Commission has warned that proposals in the Housing and Regeneration Bill could have dire consequences for charitable housing associations, undermining their independence and forcing them into activities which could ultimately lead to the loss of their charitable status.

The Commission said that the Bill’s provision to establish a new regulator, which would have the power to set compulsory standards for providers of social housing, could result in a charity being forced to engage in activity beyond its objects. The Commission said it was already in contact with the Department of Communities and Local Government to ensure that the new regulator would not threaten the independence or charitable status of charitable housing associations.

Rosie Chapman, director for policy and effectiveness at the Commission, said: “Independence is central to charitable status, and trustees must always be able to take decisions that are in the best interest of the charity and its beneficiaries. If proposals in the Bill undermine their ability to do this, it would have serious implications for charitable housing associations.”