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Social housing to grow till 2014

Social housing market will continue to grow in spite of current government spending levels which are unsustainable given the background of public sector debt, says a new report.
The new report by AMA Research on the Housing Association Market 2010 - 2014 suggests that in the housing association market is expected to experience further growth between now and 2014 as continued investment in new properties and large scale transfers from local authorities boost dwelling stock.

The housing association market has been sustained by increased government expenditure, particularly through projects promoting development of affordable housing such as Social HomeBuy, and continued large scale transfers from local councils.

In 2009, UK housing association stock was estimated to total 2.7 million units. This represents a growth of 2% on 2008. However, increased cost of debt, falling private sector development and restrictions on mortgage lending have all contributed to slower growth in 2009.

Public sector capital expenditure is expected to decline from 2011 as current government spending levels are unsustainable against the background of public sector debt.

Demand is expected to remain high for housing association properties and an improvement in the private sector is likely to bring about renewed investment from banks.

England accounts for the vast majority of housing association stock in the UK, with Scotland, Wales and Northern Ireland accounting for around 15% of stock.

AMA Research's report 'Housing Associations Market - UK 2010-2014' is available for £650 and can be ordered by calling 01242 235724.
30 April 2010

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