An extension of the right to buy to housing associations could deplete the sector’s rent-generating asset base, constrain borrowing capacity and push up the cost of debt, according to ratings agency Fitch.
DCH has merged with West Devon Homes in a move that will address the latter’s ‘extremely limited financial capacity’ and deliver new homes to the local area.
Estuary HA has secured a £40m private placement with a deferred element through M&G Investments to support the development of 400 new homes.
Boost to cross-subsidy comes with increased risks
Offices and non-core properties see greatest impairment
Fund assets rally in 2013/14 to reduce exposure on local government schemes.
Contracted future work in 2013/14 increased by 29% in the UK, while £8.3bn was available to contractors.
An initial analsis of the extended right to buy suggests that HAs would be no worse off in cash terms. Plus they’d have enough to buy an equivalent property in the same area for social rent.
The million dollar question in all this is: what would happen to the value of HA assets if the right to buy was extended?
Extending right to buy will not work in practice - and completely misses the point of what the next government needs to be doing to tackle the housing crisis.
Pledge to fund extension of right to buy through forced sale of high value council assets could be viewed as form of asset stripping.
The extended RTB is a clear reminder of HAs’ exposure to political risk.What are some of the potential consequences for HA business models?
The deficit on the Social Housing Pension Scheme (SHPS) has risen by almost £300m to £1.323bn.
Regulator says ‘first principles’ analysis is needed for most complex businesses, despite G15 concerns over ‘prescriptive’ framework.
What do ‘record low’ all-in costs but a series of widening spreads in the capital markets mean for HA credit quality, asks Luke Cross
Social Housing Roadshows
Registered providers in the North East are advised to build relationships with investors, as debate tackles asset values and ‘pushing back’ over grant levels.
Funders liken Midlands housing market to London and the South East but prioritise operational efficiency ahead of geographical location.
Investors suggest pressure on cashflows will force associations to pull back on development, while also questioning sustainability of Affordable Rent.