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Number of unsold housing association market sale properties increases by 59%
The number of market sale properties that were unsold by housing associations for more than six months at the end of September had increased by 59% when compared with the number recorded in June, the regulator has revealed.
In the Regulator of Social Housing’s latest quarterly survey, which covers the three months to the end of September, 883 market sale properties were reported as being unsold for over six months, compared with 554 in June this year.
The total number of unsold market sale units, including those left unsold for less than six months, was at its highest level since the data was first collected in 2014. The total number recorded in September was 2,229 homes, up 8% from the 2,073 left unsold in June.
The new data comes as a number of associations, particularly in London and the South East, have struggled to sell homes for private sale. Earlier this year, Inside Housing revealed that Notting Hill Genesis had 400 unsold homes, with the association blaming Brexit uncertainty for the lack of sales. Other associations have also reported holding a number of unsold properties.
The number of shared ownership properties unsold for six months also increased by 23% from 2,133 in June to 2,614 in September.
However, there was a 5% decrease in the total number of unsold shared ownership properties from 7,031 in June to 6,688 in September.
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According to the regulator, the increase in the number of shared ownership and market sale properties unsold for six months reflects the high level of completions reported in the quarter ending in March this year.
A total of 1,550 market sale units and 4,817 shared ownership units were acquired or developed in the final quarter of 2018/19, both at the highest level since data was first collected for each tenure.
Over half of the unsold market sale units reported at the end of September were held by just six providers, while five providers were holding over 100 shared ownership units which had remained unsold for six months.
Despite these figures, housing associations are planning to increase the delivery of market sale and shared ownership homes.
A collective pipeline of 13,256 market sale completions are expected in the next 18 months, an increase of 73% on the 7,650 market sale completions achieved in the 18 months to September.
A total of 34,827 shared ownership homes are expected to be completed over the next 18 months, an increase of 59% on the 21,842 homes completed in the 18 months to September.
