The social housing sector once again remains financially strong and continues to access sufficient finance, according to the latest quarterly survey (2013/14 Quarter 3) 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 31 December 2013.
The report concludes that the sector continues to have access to sufficient finance, with 92% of providers having sufficient facilities to last 12 months or more. New facilities of £2.1bn were arranged in the quarter, with 74% coming from capital market funding including private placements.
The sector continues to develop and sell affordable home ownership (AHO) properties. 2,121 sales were achieved in the quarter and the stock of unsold properties reduced to 2,751. The number of AHO properties forecast to be developed in the next 18 months increased to 18,886. This indicates a potential increase in sales activity in this time period, meaning that providers must manage the associated risks effectively.
Year to date total revenue from asset sales is £1.8bn, a 20% increase compared to December 2012.
Jonathan Walters, Deputy Director of Strategy and Performance, said: “This quarter’s survey indicates that the sector continues to manage its risk exposure in respect of affordable home ownership sales and its mark-to-market collateral position. The sector as a whole remains financially strong with £11.3bn undrawn borrowing facilities in place.
“Whilst it is difficult to draw conclusions at this early stage, the sector has so far been able to manage the impact of welfare reform on their cash flows. The Regulator will continue to monitor income collection to ensure that providers effectively mitigate any downside risks to their financial position.”
For the second time, the latest quarterly survey includes data on income collection, arrears and voids.
