Industry News


Twin pressures on landlords to improve the standard of existing homes while also delivering more new homes


increased focus on improving homes for existing residents. The annual Savills Housing Sector Survey 2019


T


found 84 per cent of senior housing professionals see the provision of social rented homes as a top priority, compared to 65 per cent last year. The survey of more than 500 housing sector


leaders across housing associations and local authorities also found that just over half of respondents now believe too little is being done to maintain existing homes, up from 35 per cent in 2017. Compliance and fire safety remain central


issues, with 78 per cent of respondents reporting increased investment in health and safety compared to two years ago, and tenant engagement has climbed the agenda for 59 per cent, up from 34 per cent in 2018. Other key findings in the annual survey include:


• Local authority building: 70 per cent of local authorities plan to increase their delivery of affordable homes, while 25 per cent expect a big increase – though 61 per cent say financial capacity remains the key barrier, despite the removal of the HRA debt cap;


• For-Profit Registered Providers: 72 per cent believe FPRPs have a role to play in solving the housing crisis but 65 per cent believe they are not as concerned with tenant welfare as traditional housing associations;


• Land: 78 per cent say land is the key constraint to building more homes (down from 84 per cent in 2018); while a third of housing association respondents own some strategic land and 39 per cent plan to buy some in the next five years;


• Strategic land: a third of housing associations hold strategic land (consistent over the past three years) but the volume they hold has increased; 24 per cent had enough land for more than 500 homes in 2018, which has risen to 34 per cent in 2019;


• Modern methods of construction: 69 per cent of respondents expect to be using MMC for 10-50 per cent of their homes in five years’ time – compared to 21 per cent at present;


• 91 per cent believe estate regeneration has a role to play in solving the housing crisis, but this must not just be focused on delivering more homes – the key is to balance viability with the right outcome for residents; and


he importance of delivering their social purpose has leapt for councils and housing associations in the past 12 months, with an


The survey of more than 500 housing sector leaders across housing associations and local authorities also found that just over half of respondents now believe too little is being done to maintain existing homes


• Brexit: 33 per cent say a Brexit-related market downturn would affect their development activities – up from 27 per cent last year.


HIGHER EXPECTATIONS The findings of the Savills Survey were launched in Manchester at Housing 2019, the Chartered Institute of Housing’s annual conference. Commenting on the results, Robert Grundy, Head of Housing at Savills, said: “There is more expectation on the social housing sector than at any time in recent memory. “First, pressure on new housing delivery


continues in the face of a slowing housing market and the uncertainty of Brexit. Along with this, and in the long shadow of the Grenfell tragedy, the Social Housing Green Paper, the Hackitt Review and the likely review of the Decent Homes Standard have led to a sustained focus on health and safety compliance of existing stock.”


Grundy added: “Crucially the results from our


2019 survey reveal that there are also exciting new opportunities in the sector. Perhaps the most notable is the potential increase in delivery from local authorities following the lifting of the HRA debt cap. Encouragingly, 70 per cent of local authorities who responded to our capacity survey are planning to increase their delivery of affordable homes – 25 per cent expect a big increase.” Despite this ambition and the lifting of the HRA


debt cap, 61 per cent of council respondents say financial capacity remains a key barrier. The rise in joint ventures and other forms of development partnerships indicate how town halls are working with others to find solutions. But there is widespread recognition that the


ambition of housing professionals and policymakers to significantly increase affordable housing supply cannot be realised without continued and additional grant funding.


www.housingmmonline.co.uk | HMM August/September 2019 | 11


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