RSH Quarterly Survey published covering Q1 - April to June 2019
The latest Quarterly Survey published by the Regulator of Social Housing indicates stable financial position for social housing sector.
The latest Quarterly Survey published today (12 September 2019) by the Regulator of Social Housing shows that the sector’s overall strong financial position has been maintained despite evidence of the impact of wider economic uncertainties.
The report found that the regulated sector has access to £20.4 billion in undrawn facilities and agreed new finance of £1.4 billion in the quarter. Investment in new housing supply was £3.1 billion in the quarter to June 2019 with 3,275 Affordable Home Ownership (AHO) homes and 1,193 market sale homes completed. This is expected to increase with a £16.1 billion investment forecast over the 12 months to June 2020.
The survey report covers the period 1 April to 30 June 2019 and includes forecasts up to 30 June 2020. Based on responses from 218 private registered providers (PRPs), including PRP groups, who own or manage 1,000 homes or more, it provides a regular source of information regarding the financial health of providers, in particular with regard to their liquidity position.
The other main findings this quarter include:
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Cash balances total £5.3 billion – this is forecast to reduce to £3.4 billion over the next 12 months to fund planned capital expenditure
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Total sales receipts were £1.1 billion generating surpluses of £0.3 billion. However, current asset sales receipts were more than 40% below forecast at £0.7 billion reflecting both fewer completions than forecast and market conditions, particularly in London and the South East
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There was a 2% increase in the number of unsold AHO homes to 7,031 (the highest level in ten years) and unsold market sale properties increased by 7% to 2,073 (the highest level recorded since 2014). This is partly due to more homes for sale and AHO being built (completions being 17% higher than the same quarter last year) but also reflects wider market conditions
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The number of AHO homes unsold for more than six months saw an increase of 56% to 2,133. Conversely, market sale properties unsold for more than six months reduced by 13% to 554
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The sector’s spending on capitalised major repairs in the quarter at around £400m was 20% below forecast – attributable to delays in starting new contracts for works and to the re-profiling of programmed works.
Fiona MacGregor, Chief Executive of the Regulator of Social Housing said:
The latest Quarterly survey results indicate that the sector continues to be in a strong position in terms of liquidity, but weakening in the housing sales market is beginning to have an impact, particularly in London and the South East. Providers should consider market conditions carefully when making decisions about development commitments.
The findings underline the need for Boards to manage their resources and have robust contingency plans in place to ensure that their financial viability is maintained under a range of economic assumptions. We also expect Boards to ensure they have clear information that they are investing so that properties are in a good state of repair and meet statutory health and safety requirements.
The Quarterly Survey for Q1 (April to June) 2019 will be published on the RSH website.
Further information
- The Regulator’s Quarterly surveys are available on the RSH website.
- The Quarterly survey sets out information such as the amount of borrowing by registered providers and where they have borrowed it from, the number of affordable home ownership homes and market sale homes they have built and sold. Alongside a programme of periodic In Depth Assessments and regular financial stability checks, it provides regulatory assurance on the sector’s financial strength and the continued viability of individual providers.
- RSH 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.
- For press office contact details, see our Media enquiries page. For general queries, please email enquiries@rsh.gov.uk or call 0300 124 5225.