Press release: Regulator’s quarterly survey reports strong financial performance

first_img 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. For more information visit the RSH website. The sector continues to have access to sufficient finance with £18.6 billion in undrawn facilities and £6.6 billion in cash. Capitalised major repairs expenditure at £420 million increased 9% in the quarter. The sector forecasts expenditures of £2.3 billion in the next 12 months. Investment in housing supply at £2.6 billion was below forecast largely as a result of timing differences, slippage and providers exercising prudence in the forecasting of development cash flows Over the next 12 months, the sector forecasts spending £15.5 billion on new supply, although £4.9 billion relates to expenditure that is not yet contractually committed. Total sales of £1.3 billion were in line with the previous quarter and represented a 19% increase compared to the corresponding quarter a year ago The total stock of unsold properties was broadly unchanged at around 6,100 units. The number of properties unsold for more than 6 months increased by 39% for affordable home ownership units and 33% for outright market sale units – this is partly explained by a peak in completed new units in the quarter to March 2018 and some reports of sales taking longer to complete due to market conditions The pipeline of properties being developed for sale remains consistent with the previous quarter with a forecasted delivery of 5,000 low cost home ownership units and 2,200 outright sale units per quarter over the next 18 months – this is an increase on what the sector has historically delivered Simon Dow, Chair of the Board at RSH, is set to tell delegates at the 26 November Savill’s conference: Further information The Quarterly survey we have published today shows that the number of properties in the sector unsold for more than 6 months has increased. This is in line with the run rate on completions and wider market conditions, but as we set out in our Sector Risk Profile, it demonstrates that sales risk is an increasingly important risk for providers to manage. It is crucial that PRPs undertake challenging stress testing covering the crystallisation of multiple risks from a macro-economic shock or wider market downturn.center_img See our Media enquiries page for press office contact details. For general queries, please email [email protected] or call 0300 124 5225. The Quarterly surveys set 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. The latest Quarterly survey by the Regulator of Social Housing reports that the social housing sector’s operational financial performance exceeded expectations with strong cash interest cover excluding sales at 165%, compared to a forecast 140%.The survey report published today covers the period 1 July 2018 to 30 September 2018 and includes forecasts up to 30 September 2019.Based on responses from 229 private registered providers (PRPs) and 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 main findings this quarter also include:last_img read more