August 2018 Special Report Preview: Housing associations drive up pre-tax surplus by 21%
Fall in costs and steady turnover see sector yield a healthy surplus
The pre-tax surplus across Britain’s housing associations increased by 21 per cent to £4.4bn in 2016/17, while the net number of social housing units saw a modest increase of 2.3 per cent to 3.2 million.
Social Housing has analysed the sector’s 2016/17 Global Accounts, which are published by the regulators in England, Scotland and Wales.
Despite showing only a small increase in the number of social housing units, the figure was an improvement on past years, where unit rises were marginal or remained relatively flat. In 2015/16 there was a 1.8 per cent increase, while the 2014/15 report showed a smaller 0.9 per cent rise.
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England, Scotland and Wales housing association Global Accounts 2016/17 summary
| Total GB | Change on year | England | Change on year | Scotland | Change on year | Wales | Change on year | |
|---|---|---|---|---|---|---|---|---|
| Social housing (number of units, ’000s) | 3,212 | +2.3% | 2,761 | +1.0% | 290 | 0 | 161 | +2.2% |
| Comprehensive income | £m | £m | £m | £m | ||||
| Turnover | 22,468 | -0.1% | 20,000 | 0 | 1,560 | -1.6% | 908 | +0.3% |
| Operating costs | (14,077) | -3.0% | (12,100) | -3.2% | (1,262) | -2.0% | (715) | -2.6% |
| of which depreciation | (2,514) | +5.5% | (2,100) | +5.0% | (297) | +5.5% | (117) | +14.6% |
| Operating surplus | 6,502 | +8.9% | 5,900 | +7.3% | 409 | +37.4% | 193 | +12.9% |
| Surplus on sales of assets | 823 | +13.7% | 800 | +14.3% | 14 | +21.0% | 9 | -25.0% |
| Interest payable and similar charges | (3,787) | +15.6% | (3,500) | +16.7% | (167) | +1.5% | (120) | +7.1% |
| Surplus for the year before tax | 4,410 | +20.8% | 4,100 | +20.6% | 251 | +46.4% | 59 | -25.3% |
| Financial position | ||||||||
| Net book value | 156,899 | +3.7% | 139,500 | +4.9% | 11,321 | +4.6% | 6,078 | +6.6% |
| Long-term loans | 74,009 | +6.5% | 67,600 | +5.0% | 3,815 | +5.8% | 2,594 | +9.1% |
| Capital grant | 42,570 | -0.7% | 34,900 | -0.6% | 4,810 | +0.3% | 2,860 | +6.2% |
| Total finance and capital reserves | 49,118 | +8.2% | 45,200 | +8.1% | 2,851 | +9.1% | 1,067 | +6.3% |
Note: 1) Some items of income and expenditure are not identified separately in the above table. These include exceptional items, Gift Aid, interest receivable, cost of sales, pensions, movements in fair value of financial instruments and ‘other’ items. However these items are included in the calculation of the surpluses. 2) England represented by registered providers with more than 1,000 units; Wales represented by 33 largest housing associations. 3) The RSH provides rounded figures for England, leading to some 0% changes. Source: Global Accounts 2016/17, published by regulatory agencies in England, Scotland, and Wales
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