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Availability of grant ‘most significant factor’ for housing association development
Housing associations believe that the availability of government grants will be the “most significant factor” in the size of their future development programmes.
Responding to a survey run by auditor RSM and shared exclusively with Inside Housing, 81% of respondents also said that the current lack of clarity over future policy had not yet affected their development ambitions.
“First and foremost, the sector wants to know what the government’s social housing plans are. But policy alone won’t be enough to encourage increased development. Much will depend on the availability of government grants,” said Keith Ward, head of social housing at RSM.
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The survey, carried out before this week’s Budget, canvassed 123 social landlords on their views about the state of the market and the economy.
Asked about additional government funding, 91% said it will be the most significant factor in the size of future development programmes.
On Wednesday, the government announced a £12bn extension of the Affordable Homes Programme for five years from 2021.
It also revealed that 42% are expecting a worsening of relationships between the sector and central government as Boris Johnson’s regime begins. Mr Johnson has signalled a move towards a focus on homeownership, which will replace Theresa May’s more holistic approach.
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The survey also revealed that social landlords are not yet moving to modular housebuilding, with 58% of respondents saying they have not considered modern methods of construction for their developments.
In a sign that efforts to save money through digitalisation changes are not producing the desired effects, the survey also revealed 46% believe their efforts are not producing the savings expected.
“Despite huge investment, it’s alarming to see that nearly half of organisations are not realising the efficiencies and benefits they expected. Before undertaking any programmes, organisations need to spend time examining if it fits the strategic direction and long term objectives, as new technologies may not be the right answer,” Mr Ward added.
