The 2016 Global Accounts of private registered providers by the Homes and Communities Agency shows that the social housing sector has had a solid year of investment underpinned by strong in-year financial performance.
In 2016, over £7.5bn was invested in new and existing stock as the sector continued to leverage the surpluses generated on its trading activity.
The development of new properties for both shared ownership and outright sale increased markedly in 2016 – a 39% increase in total turnover from this activity on the previous year.
Fiona MacGregor, Director of Regulation said, “The 2016 Global Accounts shows a steady picture in the sector overall with substantial ongoing investment in new and existing properties. This is despite the increase in debt being lower than that reported in 2015. A marked increase in turnover from commercial activities is an indicator of how providers are maintaining development levels in a more uncertain operating environment. We will remain vigilant as providers continue to adapt, and expect their risk management and mitigation approaches to keep pace with their activities.”
James Prestwich, Head of Policy at the National Housing Federation, said, “In total, housing associations delivered a third of all new homes in the country in 2015/16 and our members have ambitions to build even more in the future.
“The development of homes for shared ownership and market sale has generated surpluses which will be reinvested into homes and communities across the country. Diversifying in this way has also highlighted housing associations’ determination to deliver a true offer to everyone in a changing housing market.
“But housing associations are also planning for the future. By driving down costs, the sector will be well-equipped to deal with the challenging financial years ahead.”