Accounting and the Housing SORP

We’re working with housing associations and finance bodies on the International Financial Reporting Standard and the Housing SORP.

SORPs and international-style accounting

Statement of Recommended Practices (SORPs) interpret accounting standards and provide recommendations on financial reporting for particular industry segments, such as the housing association sector, to which the general rules don’t easily apply.

The Housing SORP: 2018 update applies to all registered social housing providers in the UK and provides essential guidance on, and interpretation of, accounting standards for the sector.

Audit tender template

We've produced a template to help housing associations in their external audit tendering process.

Download the template

The Financial Reporting Council (FRC), the UK accounting standard setter, subcontracts the development of the housing SORP collectively to the National Housing Federation, Community Housing Cymru (CHC), and the Scottish Federation of Housing Associations (SFHA).

The development of the housing SORP is overseen by a representative group, the SORP Working Party, which is facilitated by the NHF. The SORP Working Party follows the FRC‘s policy on developing SORPs.

Find out more about SORP governance

Tendering for a new external auditor

in 2023, Progress Housing Group re-tendered its external audit service when it was due for review, after having the same auditors for six years.

These are their top tips for anyone embarking on the same process.

Read their recommendations

Internal and external auditor list

To help housing associations select the right internal and external auditors and ensure that the tender process is healthy and competitive, we've compiled a list of the auditors used in the sector.

Housing SORP Making Body response to consultation on Financial Reporting Exposure Draft 82 (FRED 82)

The Housing SORP Making Body has responded to the Financial Reporting Council’s consultation on Financial Reporting Standard 102 (FRS 102) and Financial Reporting Standard Exposure Draft (FRED) 82.

Download the response

Guidance on changes to the shared ownership model and Right to Shared Ownership

Following changes to the shared ownership model, the SORP Working Party consulted on guidance to support those who prepare financial statements, as well as guidance on the new Right to Share Ownership model.

Find out more

Download the guidance

Read the responses to the consultation

Model accounts for housing associations

Grant Thornton have shared a set of model accounts for the social housing sector. These are intended as a best practice guide to help with the preparation of financial statements.

You can find out more and request these on the Grant Thornton website.

Accounting for Grenfell considerations

This guidance provides housing associations with relevant advice on accounting considerations arising from costs related to the Grenfell tragedy.

It has been prepared following discussions between sector auditors and housing association finance directors at relevant meetings of both the SORP Working Party and the ICAEW Social Housing Committee.

Housing associations' individual circumstances and views on accounting treatment should be discussed with their own auditors.

Download the briefing

EU amends to Housing SORP

This guidance has been drafted to reflect the amendments made to FRS 102 for changes in UK company law following the UK’s exit from the European Union. The amendments have been reviewed for changes to the Housing SORP to ensure it reflects the existing requirements of FRS 102 and relevant legislative requirements.

For accounting periods beginning on or after 1 January 2021, the 2018 Housing SORP must be read in conjunction with this guidance.

Read the guidance

Who to speak to

John Butler, Policy Leader

020 7067 1177

john.butler@housing.org.uk