This week, the English regulator revealed that housing associations’ interest cover is at an all-time low. Martin Hilditch runs through the stories that explain whyPicture: AlamySharelinesThis week, the English regulator revealed that housing associations’ interest cover is at an all-time low. Martin Hilditch runs through the stories that explain why #UKhousingInside Housing’s weekly round-up of the biggest stories for housing professionals #UKhousing Read our recent analysis of the for-profit sector to find out more about the shape of things to come. This really is a story that is set to define the future of affordable housing in England, and while much scrutiny is on traditional providers at the moment, the sector is being quietly reshaped.
While the regulator’s report gave the big picture, elsewhere there was good news for a number of individual associations, with Settle agreeing a £125m deal with Santander UK. Scotland’s biggest social landlord, Wheatley Group, also had good news as it retained its A+ credit rating from Standard & Poor’s.
When we look at the bigger picture about the challenges the sector faces, though, there were a number of stories this week that demonstrated why interest cover is falling – and why those challenges affect landlords of all shapes and sizes across the UK.
One indication came from large Midlands landlord Platform Housing Group, which revealed that it has increased investment in existing stock by 55%.
Elsewhere, our detailed research earlier this week revealed that 55% of councils have now set up a damp and mould taskforce, following last year’s inquest into the death of toddler Awaab Ishak from prolonged exposure to damp and mould.
Bristol is one council that unveiled its plans this week, setting out how it is going to ramp up stock condition surveys to tackle an inspection backlog.
This is a problem many landlords are facing, and government data this week revealed that Birmingham Council has the largest number of rental homes in England with Category One hazards – the most serious type of defect under the statutory rating system.
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