Source · Select Committees · Housing, Communities and Local Government Committee
Sixth Report - The Finances and Sustainability of the Social Housing Sector
Housing, Communities and Local Government Committee
HC 60
Published 8 May 2024
Government response
1st Special Report - The finances and sustainability of the social housing sector: Regulator of Social Housing response · published 28 Nov 2024
Recommendations & Conclusions
22
Conclusion
Acknowledged
Para 106
Financial pressures lead to deeply concerning decline in new social housing construction.
Conclusion
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 …
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Government Response Summary
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
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32
Conclusion
Acknowledged
Para 166
Risk of individual housing association insolvencies threatens broader sector investment and stability
Conclusion
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 …
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Government Response Summary
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
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33
Conclusion
Acknowledged
Limited ability of Regulator of Social Housing to manage large housing provider insolvency
Conclusion
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 …
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Government Response Summary
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 threats.
Ministry of Housing, Communities and Local Government
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