The latest Quarterly Survey, published today (26th November) by the Regulator of Social Housing, shows that despite facing some challenges with regards to margins, the sector maintains a “stable financial performance.”
According to reports, the regulated sector has access to £21.6bn of undrawn facilities and agreed new finance of £2.8bn in the quarter.
As reported by 24housing in the quarter to September, figures stood at £20.4bn in undrawn facilities and an agreed new finance of £1.4bn – with the latest numbers showing a considerable rise.
However, during the quarter, 3,576 Affordable Home Ownership (AHO) units were developed and 3,773 units were sold – a 5% decrease in the number of unsold units to reach 6,688 at the end of September.
Margins on AHO sales averaged 23.3% in the quarter, the lowest rate achieved in the last three years.
The other main findings for the quarter include:
- Cash balances total £5.2bn; this is forecast to reduce over the next 12 months to £3.4bn, as cash is used to fund planned capital expenditure
- Loan repayments of £0.6bn were made in the quarter
- Cash interest cover, excluding current asset sales, was 149% in the quarter to September 2019 against a forecast of 136%. Interest cover is forecast to average 128% over the next 12 months as expenditure on capitalised repairs and maintenance is expected to increase
- Including both current and fixed asset sales, total sale receipts were £1.4bn in the quarter, generating surpluses of £0.4bn. Current asset sales receipts were 23% below the forecast of £1.2bn
- In the 12 months to September 2020, the sector is forecasting £5.5bn worth of current asset sales and £1.7bn of fixed asset sales. By comparison, in the 12 months to September 2019, current asset sales were £3.4bn and fixed asset sales were £1.8bn
- Net debt is forecast to increase by £5.3bn
The Regulator has stated that it will continue to monitor developments in the housing market closely and engage with providers with significant exposures to market and AHO sales.