Social Housing: Experts expecting a sector shake up
CHANGES to the benefits system, funding issues and demographic trends are likely to lead to a radical shake up of the social housing system, locally based providers believe.
Speaking at a round table discussion in Birmingham organised by TheBusinessDesk.com and Lloyds Bank, a number of providers suggested we are entering a period of uncertainty – in areas such as funding – which will lead to change.
Mike Hew, chief executive of Calmore Accord – part of the West Bromwich-based Accord social housing group – said: “Ultimately for us to get affordable finance we need to prove we have certain stabilities. And some of those are under threat.
“We can no longer depend on subsidies for development, for example, and also for people with support needs that is quite a challenging area at the moment.
“We need a new model. We have to look at other ways forward, such as cross-subsidy or profit for purpose.”
This story is part of a supplement on social housing, produced in association with Lloyds Bank. To read more and to download it as a PDF click here.
Ruth Cooke, chief executive officer of housing association Midland Heart, said she has seen more polarisation in the market and that businesses with models that don’t ‘fit into boxes’ have more trouble obtaining finance.
“But the picture is really mixed. There are encouraging signs on capital markets. There is high demand for housing association bonds,” she said.
David Chapman, managing director of Mazars Property Consultancy, believes we are likely to see even more of a shake-up in the sector.
“There is a challenge with capacity. We are seeing a lot more dynamism in the sector. This is driven by efficiency as are the mergers,” he said.
But Brian Darling, Lloyds Bank’s head of social housing and business development in the mid-markets real estate commercial banking team, said the bank remains excited about opportunities in this sector.
“It will be aggressive about supporting this sector going forward. And not just with larger organisations around the UK. Our SME team is getting involved with smaller associations,” he said.
