2019 has been a year of contrasts: A record period for housing association activity, with significant progress on development, supported by a substantial increase in funding despite the previous year’s large increases.
2020 is likely to see this change, following the election of a new Government with a large Parliamentary majority which is looking to deliver a strong domestic agenda:
- Shifting resources from the South of England to the Midlands and the North,
- Implementing new policies on the provision of housing.
Housing associations are in a strong position to respond to this after four years spent adjusting to the pressures created by rent reductions:
- A greater focus on generating surpluses to support future activity
- Increased levels of operational efficiency, creating enhanced value for money
- A growing commitment to the development of social housing
- Greater willingness to tackle the inefficiencies of legacy funding, and
- A significant improvement in the cost and management of debt.
Lenders have responded to this by improving the terms and the volume of funding on offer; stimulated by:
- Greater competition from new entrants to the sector, particularly from offshore lenders
- Increased commitments to individual borrowers, and
- Greater flexibility on the type and access of funding on offer.
In its review of the financial markets for housing associations in 2019, Chatham focuses on a number of developments which it believes will continue to support funding in 2020.
Please click on the button on the right to download the annual review.