Posted 18.02.16
The social housing sector remains financially robust, according to the 2015 Global Accounts published by the Homes and Communities Agency (HCA) today.
The accounts demonstrate the sector delivered a solid year of balance sheet growth, underpinned by a strong financial operating performance. The value of housing properties increased by £7.1 billion, to £138 billion. Debt increased by £4.1 billion. A surplus of £3.0 billion was recorded in the year.
The £7.1 billion growth in the value of housing properties is predominantly driven by the development of new properties. The growth in housing properties was funded primarily through debt and the re-investment of operating surpluses supplemented by grant of £0.5 billion.
Capital investment in major repairs in existing properties was £1.9 billion. Housing properties with a book value of around £1.2 billion were sold, reducing the value of the properties on the balance sheet, but providing significant cash receipts for reinvestment.
The strength of the housing market has underpinned a significant proportion of the 2014/15 surplus supporting the sector's new build activity for shared ownership and outright sale.
Development for-sale has increased considerably in 2015 with turnover of over £2 billion. For the first time, the Global Accounts publication includes analysis of the delivery of market supply through providers' unregistered subsidiaries, showing the full extent of the sector's diversification into a range of commercial activity. In addition, the surplus on sales of fixed assets was over 20% of the overall reported surplus.
The total balance of drawn debt was £63.4 billion. This debt is primarily in the form of bank loans, with new debt increasingly being raised in the capital markets. As a result of the increase in debt, there was a modest increase in gearing.
Sector turnover increased by 4.1% to over £16 billion. The majority of the increase came from the core social housing lettings activity, which was responsible for 84% of turnover. The operating margin also increased from 26% to 28% as costs increased by less than revenues.
The document is available to download at GOV.UK.
Posted 01.02.16
Housing subsidies in Scotland are being increased for affordable homes for rent being delivered by councils and registered social landlords over the next three years.
Subsidies help Scottish councils and RSLs acquire land or buildings and to build, convert or improve housing for social and affordable rent.
Recommendations on increasing subsidy levels made by an expert group, which included housing associations and council representatives, have been agreed in full and will now be implemented for all new grant applications.
Grant subsidies have been increased by up to £14,000 for each new home with incentives being offered for those homes achieving the higher greener standard.
This means for RSLs in city and urban areas subsidy goes up from £58,000 to £70,000, and for council homes from £46,000 to £57,000.
Housing Minister Margaret Burgess said:
"We have a strong record on housing, having exceeded our target to deliver 30,000 affordable homes in this Parliament.
"We also started a new generation of council house building and have taken steps to safeguard social housing for the future by abolishing the Right to Buy.
"Our new target will be to deliver at least 50,000 affordable homes, which will be backed by over £3 billion of investment.
"The new target is a 67% increase in affordable housing supply, with 70% of the new target being for social rent."
