The social housing sector demonstrates its financial stability as it continues to access sufficient finance, according to the latest quarterly survey (2013/14 Quarter 4) published by the Homes and
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 year-end report is based on a survey of all private registered providers owning and/or managing more than 1,000 homes for the quarter ending
The report concludes that the sector continues to have access to sufficient finance, with over 90% of providers having sufficient debt facilities to last 12 months or more. New facilities arranged in the year to
Management of the existing debt portfolio has been solid. Mark-to-market exposure on derivative instruments eased slightly in the quarter and is generally well managed. The sector fixes the interest rate payable on around two thirds of its debt, giving some certainty over future interest costs. Immediate refinancing risk is low with only 2.5% of debt due to be repaid within the next two years. However, the sector has seen an increase in the level of debt repayable in the next two to five years, partly as a result of shorter term bank lending.
The sector continues to develop and sell affordable home ownership (AHO) properties. The number of unsold AHO units increased by over 20%, largely driven by an increase in completions and acquisitions in the quarter - 2,678 completions were achieved in the quarter (December 1,936). The number of unsold AHO properties remains below the
"Housing sales for the year were robust, with sales up 24% on the previous year. However in the last six months, providers' 18 month AHO pipeline forecasts have increased by around 30% and we know that open market sales are expected to provide a significant and increasing income stream for a small number of providers. We expect providers to manage their sales exposure and to ensure they can continue to meet our viability standard irrespective of changes in the housing market."
The latest quarterly survey includes year-end additional information on the sector's private finance position. It is available to download from the HCA website.
TNS 18EstebanLiz-140611-30FurigayJane-4762171 30FurigayJane
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