The social housing sector continues to demonstrate its financial stability, and has access to sufficient finance, according to the latest quarterly survey (2014/15 Quarter 1) 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 report is based on a survey of all private registered providers owning and/or managing more than 1,000 homes for the quarter ending
New facilities arranged in the quarter totalled Pounds1.1 billion. Investors' confidence in the sector was demonstrated by the continued trend towards capital market funding; over half of the new funding came from capital markets including the first long term government guaranteed bond arranged through
Affordable Home Ownership (AHO) sales remained stable with 2,116 sales reported in the quarter. The stock of unsold homes fell to 2,985. There were fewer AHO completions reported in June than in March - the anticipated increased numbers of completions in 2014/15 are yet to be achieved. 1,734 completions were reported this quarter; the 18 month pipeline to
This report also includes additional information relating to properties developed for market sale - the forecast pipeline for completions over the next 18 months anticipates a marked increase in activity, averaging 879 homes per quarter.
"The number of unsold AHO and market sales homes fell in the quarter and sales risk is concentrated in relatively few providers. However, pipeline figures for AHO and market sale development in the next 18 months forecast a level of new supply significantly in excess of current sales volumes.
"The July announcements, by HCA and GLA of Pounds1.3 billion allocations to deliver over 60,000 new homes, will give providers greater clarity of their future debt requirements.
"As regulator, we remind providers to ensure that they secure facilities well in advance of need so that they can meet their financial commitments in an orderly manner."
The latest quarterly survey is available to download from the HCA website. https://www.homesandcommunities.co.uk/ourwork/publications
TNS 18EstebanLiz-140821-30FurigayJane-4834041 30FurigayJane
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