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Council-backed association keeps sector-leading credit rating

The London housing association with debts guaranteed by three councils has kept its sector-topping credit rating.

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Picture: Getty
Picture: Getty
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The housing association with debts guaranteed by three councils has stayed on top with its credit rating #ukhousing

Local Space, which has 80% of its repairs costs paid by Newham Council, has kept a high credit rating #ukhousing

Newham, Hackney and Waltham Forest councils all guarantee this housing association’s debts #ukhousing

Local Space, established in 2006, still has a rating of AA- from ratings agency Standard & Poor’s (S&P), equalling Richmond Housing Partnership as the highest-rated association in the agency’s portfolio.

The 2,000-home association specialises in providing temporary housing in east London, and its debts are guaranteed by Newham, Hackney and Waltham Forest councils, boosting its credit rating.

S&P’s judgement noted: “Local Space continues to record very strong and stable performance with… margins higher than peers, at about 75% on average, as a result of its long-term nomination and rent guarantee agreements and only limited related costs.”


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Newham Council, which helped set up Local Space in 2006, also covers around 80% of the association’s repairs and maintenance costs.

This gives it, in S&P’s view, an “exceptionally high” margin on earnings before interest, tax, depreciation and amortisation – a standard measure of a company’s operating performance.

Jitinder Takhar, chief executive of Local Space, said: “We are very proud to have continued to hold our position in receiving this top recognition from S&P. We are a unique housing association operating in a particular market.

“Understanding our clients’ needs, meeting those requirements well and our partnering approach has resulted in a sector-leading financial performance. Our success in showing continued financial strength demonstrates that value creation is possible in smaller organisations.”

Sir Robin Wales, mayor of Newham, added: “We helped establish Local Space in 2006 to provide homeless families with a home – I am very proud that since then thousands of families have benefited from this vision.

“The reaffirmation of the top credit rating demonstrates that the Local Space model is working, and this is why we welcome the growth strategy, which will see the expansion of Local Space by a further 800 properties.”

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