Housing sector

The social housing sector is “financially resilient” in 2020-21 despite the pandemic

The Social Housing Regulator has published its 2021 Global Accounts today (December 14, 2021), a financial statement of the social housing sector for the year ending March 31, 2021.

The report shows that the sector has demonstrated resilient financial performance in the face of difficult economic and operational conditions.

The first part of the year saw the direct impact of the pandemic, including lockdowns and the closure of construction sites which resulted in delays in capital investment programs and reduced investment in supply. 20% new.

Some large repair programs were also affected.

On the other hand, expenditure on current repairs held up over the year.

Other highlights are:

  • Despite the challenges, the underlying supplier surplus for the year fell only slightly from £2.7bn to £2.6bn.
  • The impact of rental increases returning to the CPI +1% from April 2020 was offset by a drop in sales of properties held for rent and an increase in net financial expenses.
  • There has been limited movement of arrears.
  • The housing market remained strong despite the shutdown for a period and revenue from first tranche condominium sales and outright market sales remained at the same level as in 2019/20 at around 0.5 billion. of pounds sterling.

The solid financial performance for the year was supported by strong liquidity and investor confidence.

The sector accepted the highest level of new installations recorded in a single year at £15.1bn, and drawn debt rose to £86.3bn.

The sector remains committed to future growth, with capital commitments of £38.7bn (a 5% increase on 2020).

This commitment is reflected in supplier financial forecasts which show planned increases in investments in energy efficiency and building safety as well as catching up spending on major repairs.

Fiona MacGregor, Managing Director of RSH, said:

“Despite strong headwinds, housing associations and other private social housing providers responded well in 2020/21 to maintain financial resilience, attract investment and continue to provide essential services.

The continued uncertainty of the pandemic, coupled with broader macroeconomic and operational challenges, means providers need to stay focused on achieving their primary objective and communicate effectively with stakeholders.

It is vitally important that boards and executives effectively manage risk to ensure their continued financial viability and thereby protect tenants’ homes.