Housing associations and their wholly owned subsidiaries are set to be made exempt from the developer cladding tax after lobbying efforts by the sector. Lawyers had warned that not-for-profit registered providers that own development companies could be liable for the Residential Property Development Tax (RPDT), due to take effect next April. But in an updated note on the legislation, the Treasury said that non-profit housing companies will be excluded. The note added: “Wholly-owned subsidiary companies of a non-profit housing company are also excluded from being treated as residential property developers for the purpose of the tax.” Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/housing-associations-to-escape-cladding-tax-72806

Housing Association Housebuilding Completions Drop By Fifth

 The number of homes built by housing associations fell by almost a fifth in the 2020/21 financial year due in part to the pandemic. Data collated by the NHF showed that approximately 44,000 homes of all tenures were started in 2020/21, with 38,200 completed. In terms of homes built, housing associations completed 4,240 social rent homes, a decline of 13% on 2020. Affordable rental home completions fell by 19% to 16,038 and affordable homes for sale fell by 19% to 11,959. Total affordable home completions stood at 32,237 a drop of 18%. Market rent completions stood at 1,095 during the year, a drop of 12%, and market sale homes dropped 19% to 4,910. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/housing-association-housebuilding-completions-drop-by-fifth-72715

‘A Lot Of Housing Associations’ Now Looking At For-Profit RP Model

A number of housing associations are exploring launching their own for-profit registered providers to help fund development. The Housing and Regeneration Act 2008 allowed such bodies to register with the Regulator of Social Housing for the first time, and 53 have done so in the past decade, many of them developer subsidiaries or backed by equity firms. Read more on the Social Housing website.

Social Housing - News - ‘A lot of housing associations’ now looking at for-profit RP model

Pandemic Will Hit Housing Association Income By 6% This Year

The ongoing COVID-19 pandemic will wipe £105m off housing associations’ incomes when compared with pre-pandemic forecasts, according to credit ratings agency Moody’s. New analysis by Moody’s projected that the financial pressures brought by coronavirus will see an increase in unemployment, with arrears rising by one to two percentage points in the year. This equates to 5% to 6% of social housing providers’ (SHPs) income which is now expected to be £105m lower than predicted before the outbreak. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/pandemic-will-hit-housing-association-income-by-6-this-year-moodys-predicts-69762?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60 

Richard Peden, director of finance and corporate services at the RSH, said that the regulator would be holding fees at the same level for the whole of the next financial year. He said that this was in recognition of the above inflation fee increase put on associations last year, but also the resource pressures providers are facing due to the COVID-19 pandemic. Every year, associations with more than 1,000 homes have to pay a fee to the regulator for every home they own. If an organisation has fewer than 1,000 homes it is required to pay a flat fee of £300. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/regulator-to-freeze-fees-for-rps-next-year-due-to-covid-19-69020 

Housing Associations To Borrow £42bn Over Next Five Years

 Data collected by the Regulator of Social Housing (RSH) shows housing associations are expected to agree new debt facilities worth £42bn. This comes as the regulator predicts that total sector turnover will fall 7.6%, from £136.9bn to £126.4bn. The data comes from the RSH’s financial forecast returns (FFR) which is gathered annually from registered providers owning more than 1,000 units, and demonstrates the sector’s continued appetite for debt. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/housing-associations-to-borrow-42bn-over-next-five-years-regulator-predicts-68686#:~:text=Housing%20associations%20to%20borrow%20%C2%A342bn%20over%20next%20five%20years%2C%20regulator%20predicts,-News24.11.20&text=Housing%20associations%20in%20England%20are,10bn%2C%20Inside%20Housing%20can%20reveal

Housing Associations Sceptical About FOI-Style Demands In White Paper

New proposals put forward in the Social Housing White Paper that will make it easier for tenants to access information regarding their housing associations, which are similar to the requirements under the Freedom of Information Act, could cost time and money, landlords have warned. The white paper proposed a new scheme for social housing tenants to access information, which allows “tenants or their representatives to access information related to the management of social housing held by their landlord”. The proposals also suggested that tenants could be able to access relevant information that may be held by sub-contractors contracted to housing associations. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/housing-associations-sceptical-about-foi-style-transparency-demands-in-white-paper-68634?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

‘White Paper’ Launches To Establish ESG Standard For Social Housing

An initiative focused on creating a standardised approach to environmental, social and governance (ESG) reporting for housing associations (HAs) has launched its proposed set of 45 criteria, across 10 themes. The criteria have been developed based on a review of existing ESG investor questionnaires and consultations with registered providers, investors and experts in the field. Housing association Peabody and finance consultancy Centrus led on the project, with specialist impact advisory The Good Economy facilitating and creating the paper. Read more on the Social Housing website.

https://www.socialhousing.co.uk/news/white-paper-launches-to-establish-esg-standard-for-social-housing-66344?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

UK Housing Review Calls For Increased Grant Levels For Social Housing

In the latest UK Housing Review, there are calls for government to increase the grant levels for social housing. While grants have risen slightly in the last two years, they now cover just 11% of housing association’s development costs, leaving the rest to be met by borrowing and surpluses. One-third of new homes are being built without any grant. The review also shows only 11% of new homes built in England is at genuinely affordable social rents, compared with nearly 70% in Scotland and over 80% in Wales. Read more on 24housing.

https://www.24housing.co.uk/news/uk-housing-review-calls-for-increased-grant-levels-for-social-housing/

Housing Associations Under Pressure To Offer Covid-19 Rent Holidays

Housing associations are under pressure to offer rent holidays after only one pledged not to evict any tenant in arrears due to self-isolating because of the coronavirus. Millions of people live in 2.4m homes let by housing associations across England, Scotland and Wales. Rents are expected to rise by 2.7% from next month and there are fears many people will be unable to pay after losing work or due to being in self-isolation. The Labour party has urged the government to ban the eviction of tenants whose income has been hit by the outbreak and to allow rent deferrals. Read more on the Guardian website.

https://www.theguardian.com/society/2020/mar/17/housing-associations-under-pressure-to-offer-covid-19-rent-holidays

Private-Sale Homes Built By Housing Associations Down 46%

The number of homes being built by housing associations for sale on the open market has nearly halved in the past year, according to the National Housing Federation. The NHF, which represents housing associations, said the number of properties in which construction began between July and September last year fell to 888, compared with 1,647 in the same period the previous year. This represents a fall of 46%. However, the NHF’s figures also show that construction starts of affordable homes in the quarter were up 5% to 9,538 and up to 43,666 over the year. This is the highest annual total since the survey began in 2016. Read more on Housing Today.

https://www.housingtoday.co.uk/news/private-sale-homes-built-by-housing-associations-down-46/5103737.article

Homes England Appoints Three Housing Associations To Become Help To Buy Agents

Three housing associations have been chosen by Homes England to manage its new Help to Buy agent network across the country, replacing the seven agents previously operating the programme. Plus Dane Housing, BPHA and Radian have been selected to work as agents in the North, Midlands and London, and the South respectively. The associations will be responsible for the administration of the Help to Buy equity loan scheme and the promotion of affordable housing options, such as shared ownership and affordable rent. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/homes-england-appoints-three-housing-associations-to-become-national-help-to-buy-agents-64644?utm_source=Ocean%20Media%20Group&utm_medium=email&utm_campaign=11204963_IH-DAILY-8-1-2020-GR&dm_i=1HH2,6O5SZ,8CKJV9,QLIO5,1

Election Plea For BME Housing Associations

BMENational wants cross-party commitments to back BME housing associations that work in some of the most disadvantaged parts of the country. “We have identified four areas where government action is urgently needed: ageing well, ending homelessness, equality of opportunity, and thriving and diverse cities,” said chair of BMENational, Cym D’Souza. “We call upon all parties to commit to support our aims and help us work together in addressing the challenges faced in our communities,” she said. Read more on 24housing.

https://www.24housing.co.uk/news/election-plea-for-bme-housing-associations/

Housing Associations React To Conservative’s Right To Buy Promise With Scepticism

Housing associations have reacted with scepticism to the Conservative Party’s manifesto pledge to push ahead with a policy extending the Voluntary Right to Buy (VRTB) to their tenants if it wins next month’s election. The manifesto promised to “evaluate new pilot areas” following the “successful” Midlands scheme. But the National Housing Federation (NHF) said the pilot will be a success “only if it helps tenants onto the housing ladder without any net loss of social housing”, while housing associations involved in the project pointed to issues with the policy. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/housing-associations-react-to-conservatives-right-to-buy-promise-with-scepticism-64318?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Unsold Market Sale Properties At Highest Level In Five Years

Housing associations have reported the highest number of unsold market sale properties in at least five years, the latest quarterly survey from the Regulator of Social Housing has shown. The number of unsold units grew eight per cent over the second quarter (1 July to 30 September 2019) to reach 2,229 – the highest level recorded since the data was first collected in June 2014. The report also showed that undrawn facilities are at a record high, while capitalised repairs spend and investment in housing supply both fell below forecast. Download the report from the Gov UK website.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/848312/Quarterly_Survey_for_Q2_2019-20.pdf

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

Pre-Tax Surplus Drops 11% Among Associations

Britain’s largest housing associations (HAs) saw a significant decrease in their pre-tax surplus during the 2018 financial year. Social Housing has analysed the sector’s 2017/18 global accounts, which are published by the regulators in England, Scotland and Wales. Our analysis has shown that total surplus for the year before tax was down 10.8 per cent to £3.96bn. This figure was driven by drops in pre-tax surplus across all three countries. Read more on the Social Housing website.

https://www.socialhousing.co.uk/insight/special-report-pre-tax-surplus-drops-11-among-british-associations-62511?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Regulator To Hike Fees By 15%

The Regulator of Social Housing (RSH) will hike its per unit fees by 15% next year as it tries to cope with housing associations’ greater market focus and the emergence of for-profit providers. A review of the regulator’s resources had identified “the need for an increase in capacity to ensure that we can continue to effectively regulate the changing risk profile of the sector”. This includes keeping pace with the “increasing market focus among some registered providers” and new funding models such as “commercial for-profit providers”. The fee increase will add tens of thousands of pounds to the bills of the largest housing associations. Download the letter from the GovUK website.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/817822/RSH_letter_-_Fees_proposals_2020-21.pdf

Partner With Housing Associations To Use Borrowing Freedoms, Says LGA Chair

The outgoing leader of the Local Government Association (LGA) has said councils should partner with housing associations to make the most of new borrowing freedoms to build more homes. Lord Gary Porter, who stepped down as chair of the LGA this week after serving his four-year term, told Inside Housing there “is a serious issue” about councils having enough internal capacity and experienced staff to develop at scale. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/partner-with-housing-associations-to-use-borrowing-freedoms-says-lga-chair-62133

Providers And Tenants Short-Changed Over UC

An exchange of correspondence with the Secretary of State of Work and Pensions, councils and other housing bodies has exposed the short-changing of claimants and social landlords alike by the way DWP calculates Universal Credit (UC) payments and awards. With 52 weeks and one day in a ‘common’ year, and 52 weeks and two days in a leap year, claimants are underpaid by one or two days each year accordingly. The resultant misunderstanding and confusion cover a serious issue for housing associations and councils already struggling to fulfil legal duties and obligations to their residents. Read more on 24housing.

https://www.24housing.co.uk/news/providers-and-tenants-short-changed-over-universal-credit-with-dwp-unable-to-count-days-in-a-year/