A recent change in how the UK government is regulating social housing has sent a ripple effect across all of housing, as checks for financial viability become more of a norm. Housing leaders need to be able to improve their properties to standard while also investing in their communities with more housing as needs dictate.
This stems from the first set of checks from the Regulator of Social Housing, which is part of the government’s effort to ensure more housing providers have the finances to manage their properties’ risk management. Of course, this is also happening during a time of significant instability in general in the UK’s financial markets. That’s something that the RSH acknowledged in its information release on the effort, saying that they understand the economic challenges some may have.
At the same time, it’s equally as essential to make sure that social housing companies can, in the words of the RSH, “focus on their key objectives: investing in new and existing homes and providing quality services for their tenants.”
More challenges ahead
As Inside Housing points out in its article, the 27 significant providers complied with the financial viability standards. Yet, 19 were regraded down a level because they faced financial concerns. That includes some of the largest housing associations in the UK.
These providers are facing a balance between dealing with higher inflation and interest rates for borrowing and needing to invest in new homes and continued building safety work. This includes efforts to lessen carbon use and more consistent repair work.
As the article points out, some associations are now looking into mergers or joint ventures to weather the current economic storm and still provide for their tenants and their own business strategies. These changes may lead to an upgrade in status once the government looks into its financial stability again. Either way, it’s a facet of housing that will now be an entrenched part of government oversight.
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