The social housing sector once again continues to access sufficient finance and manage its exposure to the risks of a challenging operating environment, according to the latest quarterly survey (2013/14 Quarter 2) published by the Homes and Communities Agency.
As the Regulator of social housing providers, the HCA undertakes a quarterly survey of housing providers to establish the levels of exposure to a range of risks faced by the sector. This report is based on a survey of all private registered providers owning and/or managing more than 1,000 homes for the quarter ending 30 September 2013.
The report concludes that the sector continues to have access to sufficient finance, with 91% of providers having sufficient facilities to last 12 months or more. New facilities of £1.1bn were arranged in the quarter, with 38% coming from capital market funding including private placements.
The sector continues to develop and sell affordable home ownership (AHO) properties. 1,969 sales were achieved in the quarter and the stock of unsold properties reduced to 2,976. The number of properties forecast to be developed in the next 18 months increased to 17,773. This increase is not unexpected as this 18 month period represents the end of the Affordable Homes Programme 2011-15 delivery period and the forecast programme profile anticipated more activity in this period. An increase in total revenue from asset sales to £643m followed the seasonal trend.
The survey also highlights that only 2,976 AHO homes remained unsold (June 3,304), of which the number that had been unsold for over 6 months decreased to 1,221 (June 1,292).
Jonathan Walters, Deputy Director of Strategy and Performance, said: “This quarter’s survey results continue to indicate that the sector as a whole remains financially strong with £11.4bn undrawn borrowing facilities in place.
“The impact of the introduction of welfare reforms, including the removal of the spare room subsidy, is being monitored for the first time, in our survey. Whilst it is difficult to draw conclusions at this early stage, the figures suggest that for the most part performance is broadly in line with the assumptions in business plans for the majority of providers. The Regulator will continue to monitor income collection to ensure that providers manage their financial position.”