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Social Housing Market Review Summer 2019

05 June 2019

Gambit Corporate Finance announces the publication of its Social Housing Market Review for Summer 2019.

Report Summary:

  • Provision of affordable housing continues to increase as a result of the Welsh Government’s ‘Taking Wales Forward 2016 – 2021’ programme.
  • The sector continues its successful track record of attracting private finance to fund the development of more homes. The generation of operating surpluses allows Registered Social Landlords (RSLs) to borrow alongside essential support received from Welsh Government.
  • On a historical cost basis, RSLs are not highly geared compared to levels which would be accepted by lenders, signalling greater capacity within the sector to support more borrowing to complete more developments.
  • Favourable interest rates will not remain indefinitely. Therefore, continued effective treasury management and comprehensive business plan stress-testing will help RSLs manage their risk.
  • Collaboration and consolidation has been a prominent theme in the wider sector, particularly amongst mid sized organisations.
  • RSLs  are regarded as financially stable, with a clear ongoing commitment to the delivery of new affordable housing.
  • The Independent Review of Affordable Housing Supply in Wales examines whether more can be done to increase the supply of affordable housing in Wales and to maximise the resources available.

To read the full report click here