Operating surpluses knocked by 2.7% due to write-downs and one-off charges
Housing association impairments increased over 2016/17, with write-downs incurred on both residential and commercial property.
Total net impairment stood at £69.9m, up from £61.1m the year before. This translated to a 2.7 per cent negative impact on £2.55bn of operating surpluses, according to Social Housing’s latest special report.
The analysis has looked at 157 housing association accounts, covering at least 90 per cent of stock in the sector, to give insight into which housing associations saw the largest impairment increases year on year and by how much.
|Impairment/(reversal)||Operating surplus 2016/17|
|Movement in net impairment 2016/17||Number of housing associations||Total number of units||16/17, £m||15/16, £m||14/15, £m||13/14, £m||12/13, £m||11/12, £m||10/11, £m||Cumulative seven years, £m||£m||Change caused by impairment|
|Higher than in previous year||32||883,934||57.5||11.8||2.8||19.6||36||23.6||15.3||116.2||1,598||-3.50%|
|Lower than in previous year||10||195,003||18.4||35.7||0.3||3.2||5.4||5.4||6.4||73.6||388||-4.50%|
|Net uplift in value in 16/17||8||232,515||-6||13.7||2||9.3||4.8||3.6||3.2||28.8||542||1.20%|
|Last impairment recorded in 14/15 or earlier||1||9,406||0.0||0.0||3||0||0.0||0.0||0.0||0.0||22|
|Total net impairment||51||1,320,858||69.9||61.1||8.1||32||46.2||32.6||24.9||218.6||2,550||-2.70%|
Source: Audited accounts 2016/17, and previous years. Compiled from a survey of accounts of the 130 largest housing associations in the UK, at consolidated group level. Data to left of red line under FRS 102