Housing sector survey highlights the cost challenge of delivering net zero influencing decision making
In partnership with Social Housing magazine, RESAM, strategic advisors to the housing sector, have released
the Housing Sector Survey for the second year in a row.
The perspective of 302 senior housing professionals have been captured, representing a range of providers including Housing Associations, Local Authorities and arms-length management organisations (ALMOs).
Key strategic priorities and challenges are identified, as well as implications for net zero carbon and new homes delivery. Respondents also reveal attitudes towards not-for-profit providers and private equity, data handling, shared ownership rents, and what may help boost the sector’s reputation.
Key findings:
- 45% of providers anticipate worsening finances over the next 12 months, an increase from 34% of respondents in last year’s survey.
- New homes delivery is bearing the brunt of cutbacks and delays.
- Existing stock investment remains a priority while also being viewed as one of the best ways to boost the sector’s reputation.
- Spending more than £30,000 per unit to meet net zero standards is now expected by 19% of providers, with most costs anticipated to be covered by government grants.
- Just 52% of providers have planned for their homes to meet net zero standards.
- Respondents increasingly considering private equity, refinancing and partnerships with FPRPs to secure additional capital
- 60% of respondents view their data strategy as sufficient for regulatory compliance, and 10% have revealed they do not have one
Nicholas Holt, director at RESAM, says:
“This year’s survey shows a deteriorating financial situation for many registered providers across the UK, with new homes and investment in energy efficiency being delayed as a consequence. While refinancing and additional borrowing is the most common option for raising capital, there is a growing appetite for engagement with third party sources and working with the for-profit sector.”
James Porter, also a director at RESAM, adds:
"With the continued challenges faced by the sector, especially around financing decarbonisation and wider stock investment, the need for a proactive approach to managing property portfolios and underlying performance is paramount. Good property-level data will be key in assessing performance and developing proactive initiatives, identifying where investment is best placed and the potential for partnership opportunities.”
The full report can be accessed here
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