RSH quarterly survey says social housing is in a stable financial position

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The Regulator of Social Housing’s latest quarterly survey shows that the social housing sector has more than enough access to finance and is stable enough to respond to any potential changes that could affect the wider economic environment

The survey report covers the period 1 January 2018 to 31 March 2018 and includes forecasts up to 31 March 2019.

The survey is based on responses from 229 private registered providers (PRP) and PRP groups who own or manage more than 1,000 homes.

The report also looks at annual data relating to private finance, impairment and non-registered entities.

The findings

  • in the year to March 2018, providers agreed £10.1 billion of new facilities, £2.5 billion more than in the previous year
  • 95% of providers having sufficient debt facilities to last over 12 months or more – with the sector’s re-financing risk and re-pricing risk remaining low
  • an moderate increase in the 18 month pipeline for both affordable home ownership (AHO) and market sales
  • total investment in new supply at £10.0 billion in the 12 months to March 2018 was broadly in line with forecasts – with investment in new housing supply expected to be £14.3 billion over the 12 month forecast period
  • capitalised major repairs increased 4% in the year to March 2018, and are forecast to increase further in the year to March 2019

Fiona MacGregor, Executive Director of Regulation, said:

“The survey provides a regular source of information regarding the financial health of PRPs, in particular with regard to their liquidity position.

“The March survey includes additional annual data, particularly relating to private finance. Where any information received through the quarterly survey indicates a potential concern, this is followed up with providers.

“Although providers currently remain in a strong financial position, the regulator will continue to closely monitor sales exposure and sales activity.

Where sales revenues are lower than forecast or where a provider is reliant on sales receipts, we will seek assurance that the individual providers have sufficient access to liquidity.”

The quarterly survey provides information including the amount of borrowing by registered providers and where they have borrowed from, the number of affordable home ownership homes and market sale homes that have been built and sold.

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