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NHF development survey: housing association market sale starts halve in 12-month period
The number of market sale properties started by housing associations in the second quarter of 2019/20 is down 46% on the same period in 2018/19, data from the National Housing Federation (NHF) shows.
A total of 888 homes for market sale were started between July and September last year, compared with 1,647 between July and September in 2018.
The number of affordable homes started by housing associations was up 5% from 9,109 in the second quarter of 2018/19 to 9,538 in the second quarter of 2019/20.
However, the total number of homes started was still down 4% from 11,018 in the second quarter of 2018/19 to 10,613 in the same period last year, with the slowdown in market tenures contributing to this.
Increasingly tough housing market conditions in London and the South have led to several large London housing associations decreasing their market sale development plans.
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Last month, the sector’s global accounts, published by the Regulator of Social Housing, showed that profits from open market sales had plunged £76m (29%) on the previous year.
According to the NHF numbers, affordable rent continues to be the most popular tenure for housing associations, accounting for 4,898 (46%) of the total homes started; followed by shared ownership which accounted for 3,530 (33%). A total of 1,110 social rent homes were started in the second quarter of 2018/19, an increase on the 840 started in the same period in 2018/19.
Of the homes started by housing associations between July and September 2019, 4,136 (39%) were delivered outside the Affordable Homes Programme and 4,569 (48%) were delivered through Section 106 agreements.
In its analysis of the figures, the NHF focused on the total number of affordable homes started in the year up to and including September 2019.
It showed that 43,666 affordable homes were started in the year ending in September 2019, up 16.5% on the year previous and the highest annual total since the NHF began collecting the data in 2016.
Katie Teasdale, head of member relations at the NHF, said: “These results show the great work that housing associations are doing to build much-needed homes across the country.
“In the twelve months to September 2019, they started 43,666 affordable homes, up more than 16% on the previous year. What’s more, these latest figures show that almost 9,000 affordable homes were built just between July and September last year.
“But we know that the sector is ambitious to do more. We’re looking forward to working with the new government to build the social housing that the country desperately needs.”
