Tenants Plagued By Financial Stress

Over half (54%) of renters have concerns about being unable to pay their rent due to financial difficulty, research from Intus Lettings has found. The average rent contribution per month is £530, while half of tenants don’t believe their rental property is good value for money. Some 64% of tenants rent because they can’t afford a deposit to buy a property and over half don’t believe they’ll be in a financial position to do so within the next 10 years. Read more on the Property Wire website.

https://www.propertywire.com/news/tenants-plagued-by-financial-stress

Housing Associations Financially Strong Despite Brexit Uncertainty

Housing associations are generally in a strong financial position despite the economic uncertainty surrounding Brexit, the Regulator of Social Housing (RSH) has said. In the English regulator’s quarterly survey for April to June, it said that the social housing sector had access to sufficient finance. According to the survey, housing associations still have £20.4bn of debt that they have not yet drawn down, while the sector’s total debt stands at more than £97bn. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/housing-associations-financially-strong-despite-brexit-uncertainty-regulator-says-63139

Research Reveals Scale Of Housing Developers' Profits

A new report from Sheffield Hallam University analysed the financial records of the nine biggest housebuilders between 2010-2015 and found startling results. The nine increased their housing output by 33 per cent from 2012-15. At the same time, revenue grew at more than twice this rate, increasing to 76 per cent, with profit before tax rising by a staggering 200 per cent in this period.  The research also showed that end of year profits for the biggest five firms increased from £372 million in 2010 to over £2 billion by 2015 - an increase of over 480 per cent. Furthermore, dividend payments to shareholders in 2015 by these firms amounted to 43% of yearly profits, raising questions about the levels of reinvestment in housing production taking place. Read more on Housingnet.

HAs Are The Only Group That Can Provide Modernisation In Housing

A former housing minister has warned that Hammersmith and Fulham Council will lose £22 million a year due to government plans. Keith Hill, also former Minister for London, said: “Due to the July Budget and the commitment to rent reduction and the Housing Bill, it’s had a fantastic knock on effect on housing sector finance. Due to the rent reductions, Hammersmith and Fulham are set to lose £22 million, the cumulative effect being even harsher, losing £80 million. It then gets worse when you look at the effects on the council’s business plan, which is over 40 years, looking set to lose £400 million.” His thoughts come from the recent findings of ‘Resident’s Commission’ that he chaired for Hammersmith and Fulham Council. Read more on 24dash.

Finances Worsening For Social Tenants on Low Incomes

Two in three low-income households living in social housing feel their finances have worsened in the last year, according to a survey. Charity Turn2us, which helps people access benefits and other financial help, surveyed 2,008 adults on incomes of £25,000 or less. Of these, 65 per cent of the 308 social tenants surveyed said their financial situation has worsened in the last year. The survey found that on average, people living in social housing are forced to spend more than half of their monthly income on utility bills and food. Just under half - 47 per cent - of social housing tenants said their outgoings now outweigh their earnings. A total of 53 per cent of social housing tenants have had no choice but to cut back on food and other essentials. Read more on Inside Housing.

Landlords Struggle to Pay Bills When Tenants Miss Payments

A survey of landlords and tenants commissioned by the National Landlords Association (NLA) has found that 40 per cent of landlords earn little more than enough to break even each month, meaning just one missed payment can leave them financially vulnerable. The survey also revealed some interesting insights into tenants’ perceptions of landlords, with one in three tenants stating that they thought their landlord was more interested in their earnings than anything else. The survey was undertaken to investigate the impact of missed rent payments and cumulative rent arrears. In light of the findings and the potential impact of missed rental payments, the NLA has launched a guide to financial management for landlords and tenants. Read more on the NLA website.

HCA Invests More Than £7bn in Two Years

The Homes and Communities Agency (HCA) has published a detailed breakdown of its investment programme across England for the financial years 2009/10 and 2008/09.  The data, which details investment by local authority area, reveals that the government's national housing and regeneration agency invested more than £5.433bn in total during 2009/10 and more than £2.190bn in the first four months of its existence between December 2008 and March 2009.  The biggest single programme during 2009/10 was the National Affordable Housing Programme, totalling more than £3.633bn of investment across England. During 2009/10, as well as investment within individual local authority areas, each region attracted some additional spend across a range of programmes, namely Property and Regeneration; SHESP (Social Housing Energy Saving Programme) and CIF (Community Infrastructure Fund) that cannot be attributed to any single local authority.  Details can be found on the HCA website for 2008/09 and 2009/10.

Social Housing Sector Continues to Demonstrate Resilience

The latest figures from the Tenant Services Authority (TSA) demonstrate that housing providers have continued to display financial strength in a challenging economic environment. The figures, published today, also indicate that the regulated housing sector has retained the confidence of major lenders with new finance continuing to be attracted from both banks and the bond market. Read more on the TSA website.