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
Conclusions (3)
22
Conclusion
Acknowledged
Para 106
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 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.
32
Conclusion
Acknowledged
Para 166
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 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.
33
Conclusion
Acknowledged
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 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.