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Select Committee · Housing, Communities and Local Government Committee

The finances and sustainability of the social housing sector

Status: Closed Opened: 28 Mar 2023 Closed: 28 May 2024 21 recommendations 13 conclusions 1 report

This inquiry seeks to examine the finances and sustainability of the social housing sector in England. In recent years the financial pressures for social landlords have increased as they face the demands of building new homes, retrofitting existing stock to improve energy efficiency, remediating stock with cladding and other building safety issues, and tackling issues …

Clear

Reports

1 report
Title HC No. Published Items Response
Sixth Report - The Finances and Sustainability of the Socia… HC 60 8 May 2024 34 Responded

Recommendations & Conclusions

3 items
22 Conclusion Sixth Report - The Finances and Sustain… Acknowledged

Financial pressures lead to deeply concerning decline in new social housing construction.

It is deeply concerning that as a result of financial pressures on social housing providers less new social housing will be built. This will further exacerbate the chronic shortage of social housing and will place further unacceptable pressure on those in need of social housing.

Government response. The government acknowledges the committee's concerns about financial pressures on social housing providers and explains how increased expenditure on existing stock, coupled with rising costs, is impacting their capacity to invest in new housing supply.
Ministry of Housing, Communities and Local Government
32 Conclusion Sixth Report - The Finances and Sustain… Acknowledged

Risk of individual housing association insolvencies threatens broader sector investment and stability

We recognise that the social housing sector is, as a whole, financially resilient. However there remains a very real possibility that individual housing associations may come close to insolvency. One housing association defaulting on its loans could have a knock-on effect on rest of the social housing sector’s ability to …

Government response. The government acknowledges the committee's conclusion on the social housing sector's financial resilience, agreeing with the assessment of significant financial pressures and potential for individual insolvencies, and outlines ongoing engagement with providers and expectations for early warning of viability risks.
Ministry of Housing, Communities and Local Government
33 Conclusion Sixth Report - The Finances and Sustain… Acknowledged

Limited ability of Regulator of Social Housing to manage large housing provider insolvency

We are concerned that some of the largest housing associations may face more financial risk, because they have higher fire safety costs and they have been building more homes. At the same time, we are also concerned that the Regulator of Social Housing’s ability to manage the insolvency of a …

Government response. The government acknowledges the committee's concerns about financial risks facing large housing associations and confirms the sector faces significant pressures. It states it will continue to engage closely with providers demonstrating weak financial performance and expects early warnings of viability …
Ministry of Housing, Communities and Local Government

Oral evidence sessions

4 sessions
Date Witnesses
22 Jan 2024 Bernadette Conroy · Regulator of Social Housing, Jonathan Walters · Regulator of Social Housing, Peter Denton · Homes England, Shahi Islam · Homes England, The Baroness Scott of Bybrook OBE · Department for Levelling Up, Housing and Communities View ↗
11 Sep 2023 Dave Meseck · DMG Eco, Felix Ejgel · S&P Global Ratings, Gemma Bourne · Big Society Capital, Neil Brown · Inclusion Group, Simon Century · Legal and General, Steve Collins · Rentplus-UK View ↗
19 Jun 2023 Conrad Hall · Newham Council, Councillor Pippa Heylings · Local Government Association, Deborah Heenan · Populo, Jamie Kellett · abrdn, John Marr · UK Finance, Kathryn Jones · Dudley Council, Michael Scorer · Southwark Council, Piers Williamson · The Housing Finance Corporation View ↗
12 Jun 2023 Fiona Fletcher Smith · G15, James Prestwich · Chartered Institute of Housing, Kate Henderson · National Housing Federation, Kate Wareing · Soha Housing, Paul Fiddaman · Karbon Homes, Professor Tony Crook · University of Sheffield View ↗

Correspondence

7 letters
DateDirectionTitle
17 Jan 2024 To cttee Letter from Minister Rowley to the Chair dated 16 January 2024 concerning givin…
17 Jan 2024 To cttee Letter from the Chair to the Housing Minister dated 15 January 2024 concerning …
13 Dec 2023 To cttee Letter from the Chair to the Housing Minister dated 5 December 2023 concerning …
8 Nov 2023 To cttee Letter from Rentplus concerning follow-up from the Committee’s session on 11 Se…
12 Sep 2023 To cttee Letter from Sage Homes to the Chair dated 24 July 2023 concerning finances of s…
12 Sep 2023 To cttee Letter from National Housing Federation, G15, Karbon Homes and Soha Housing to …
27 Jun 2023 To cttee Letter from Rentplus to the Chair dated 21 June 2023 concerning the Rent to Buy…