The Regulator of Social Housing today (21 May) published the
results of its latest quarterly
survey of private regulated providers’ financial data.
Data submitted by providers up to the end of March confirms that
in aggregate the social housing sector was in a good financial
position leading up to the unprecedented challenges caused by
coronavirus.
Available cash in the sector increased by £1.2 billion between
December 2019 and March 2020 and £2.4 billion of new finance was
agreed over the same period, with many reporting doing so
directly in response to coronavirus.
However the number of unsold market and shared ownership units
increased, in line with a growth in development of new properties
for these tenures. The number of units acquired or developed
between April and December 2019 was nearly a third higher than
the longer-term average.
Providers indicated that they intended to decrease their
development and housing market exposure, and other capital
expenditure over the next year in response to the current
situation. Income collection up to the end of March was generally
in line with or outperforming business plan assumptions but there
is significant uncertainty about the impact the coronavirus
restrictions and response will have in the coming months.
The forecasts that providers have made reflect their
understanding and intentions at the end of March, since when
operating conditions have continued to change. RSH expects providers
to adjust their forecasts and stress test their plans as the
situation develops.
As it set out in its letter of 26
March, RSH will engage with
providers facing higher risks to their viability and may request
that they share their own cashflow monitoring information.
Fiona MacGregor, RSH Chief Executive
said:
Our quarterly survey shows that the social housing sector has
started from a strong financial position to face the current
crisis.
In the months ahead, providers will need to keep a continuous
watch on the risks to their viability and be prepared to take
prompt action, particularly their liquidity and exposure to the
housing market. We will continue to monitor the financial
impacts, including on income collection, and support providers
as needed.
Notes to editors
- This quarterly survey report is based on regulatory returns
from 215 private registered providers and private registered
provider groups who own or manage more than 1,000 homes. The
survey provides a regular source of information regarding the
financial health of private registered providers, in particular
with regard to their liquidity position. The quarterly survey
returns summarised in the report cover the period from 1 January
2020 to 31 March 2020.
- The Regulator of Social Housing promotes a viable, efficient
and well-governed social housing sector able to deliver homes
that meet a range of needs. It does this by undertaking robust
economic regulation focusing on governance, financial viability
and value for money that maintains lender confidence and protects
the taxpayer. It also sets consumer standards and may take action
if these standards are breached and there is a significant risk
of serious detriment to tenants or potential tenants.
