Supply, demand and health of social housing
February 2009
Some recent national press reports have claimed the sector is experiencing financial problems...
...stating that six associations are being closely watched by the sector’s regulator, the Tenant Services Authority, because of the challenges thrown up by the current economic downturn.
Claire Miller, TSA executive director of governance and viability says: ‘In today’s challenging market, the TSA is actively engaging with associations to identify and help to manage their risk. At the same time, the TSA continues to expect associations to be pro-active in identifying their own risk exposures and taking corrective action where required.’ She went on to confirm that their new regulatory judgements (RJs) will be the means by which the TSA informs associations, their lenders, tenants and stakeholders of the current regulatory position.
National Housing Federation CEO David Orr says that housing associations are actually better placed than most in the economy to meet the current financial challenges. He stresses that sector’s finances remain robust and strong, with its underlying income stream coming from social rent.
However, the fact remains that there simply isn’t enough social housing to meet demand. An analysis of housing need published by Shelter (Homes for the future) in November 2008 suggests the recent collapse in house building will mean at least 500,000 fewer homes being built by the Government’s 2020 deadline. Shelter’s CEO Adam Sampson points out: ‘If we don’t build, we risk escalating house price inflation and repeating the cycle of housing boom and bust that has caused our current economic problems…the housing market downturn has created a different environment that need a new approach, with higher levels of public subsidy than at present.’
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