Housing associations

Housing associations witness 16% increase in revenues from open market sales

Housing associations have witnessed a 16% increase in the amount generated from new open market home sales, according to new research.

Property agents Savills analysed the sales of the 192 largest housing associations and revealed the findings at the Social Housing Finance Conference.

Turnover from market sales increased by £221m (16%) to £1.61bn between 2016/17 and 2017/18, with a total of 37,000 homes for sale contractually committed to be built in the 18 months from December 2018.

Other key findings from the analysis between 2016/17 and 2017/18 included:

  • turnover in the first tranche shared ownership sales homes sector increased by 10% (£110m) to £1.22bn
  • the combined increase in turnover from sales and shared ownership across the sector was 13% (£334m) to £2.83bn — over the same period, overall turnover increased by 1.8%
  • London-focused housing associations accounted for £305m (91%) of the increase in turnover from sales

Robert Grundy, head of housing at Savills, said: “Housing associations have never been more exposed to housing market risk.

“What our research shows is that they need to ensure they understand the impact this increased exposure has on their business plans.”

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