Spotlight: Releasing untapped

potential for more housing

Releasing untapped potential for more housing
Releasing untapped potential for more housing

28 November 2016, by Susan Emmett

Housing associations could deliver an additional 44,000 new homes a year

Summary

■ Housing associations (HAs) have the financial capacity to more than double their output and bring forward 44,000 extra new homes by 2029 through additional asset-backed borrowing.

■ Some form of subsidy is critical to deliver these homes across a range of tenures and to achieve affordability. In the absence of grant, HAs would need to secure land at zero or low value to deliver shared ownership or affordable rent housing.

 

■ Almost half of the additional financial capacity to become a new class of home builder rests with large scale voluntary transfer (LSVT) associations, particularly larger ones.

■ The structure of HAs also allows for continuing housing delivery through housing market cycles. Their existing stock provides an ideal asset to borrow against during periods of tighter development funding.

■ Opportunities for growth exist in most areas, particularly where there is activity linked to inward investment, infrastructure spending and the Devolution agenda. We have also highlighted areas where limited developer diversity provides opportunities for HAs to compete.

■ There are significant barriers including: skills shortage, lender attitudes and regulatory concerns. Greater collaboration within the sector is key. This is likely to include more mergers and innovative partnerships.

Articles from 'Spotlight: Releasing untapped potential for more housing'

Capacity to deliver more

28 November 2016

Capacity to deliver more

Housing associations have the potential to double their current output. But this requires greater Government support and subsidy

Who can build and where?

28 November 2016

Who can build and where?

There is financial capacity to make a greater contribution to housing delivery across the sector but LSVTs have the greatest untapped potential

Overcoming barriers

28 November 2016

Overcoming barriers

Expanding housing output from this sector is not without its challenges

Recommendations

28 November 2016

Recommendations

What is needed to double the number of homes HAs deliver

 
 

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Key contacts

Susan Emmett

Susan Emmett

Director
Residential Research

Savills Margaret Street

+44 (0) 203 107 5460

 

Chris Buckle

Chris Buckle

Director
Residential Research

Savills Margaret Street

+44 (0) 207 016 3881