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A housing association linked to private investment funds received more than £5m in donations in the last financial year, its accounts have revealed.
My Space Housing Solutions’ accounts for the year to 31 October 2018 showed that the donations were worth more than the association’s overall surplus, but My Space argued it would not have spent as much if it had not received the donations.
My Space is one of a number of housing associations that lease specialised supported housing (SSH), which is aimed at adults with mental disabilities, from investment funds.
The Regulator of Social Housing said in a report earlier this year that it is “hard to see” how any provider “substantially financed by long-term leases and subsequent tight margins” could be compliant with its standards on governance or financial viability.
Most social landlords operating this model lease all or almost all of their homes from investment funds. My Space, however, has long-term leases on 42% of its stock, meaning its ‘concentration risk’ is lower.
Over the year, My Space made a surplus of £4.1m, a huge increase on the previous year’s figure of £262,000.
Its turnover also rose significantly, from £6.7m in the previous year to £16.1m last year. Most of this came from an increase in the amount of money it received in housing benefit for the vulnerable adults it houses.
It also, however, received £4.2m in ‘support income’, which it said refers to “donations which represent non-contractual contributions by developers and leaseholders”. According to the accounts, this money was spent “solely” on care and support services for vulnerable adults.
My Space added that it also received £1m in a donation from a supplier “in relation to the supply of furniture and soft furnishings”.
Given that the total donations of £5.2m were more than My Space’s surplus of £4.1m, Inside Housing asked My Space whether it would have made a loss without the charitable donations.
In a statement, Aneeq Qureshi, finance director at My Space, said that the funds had been used to pay for investment in existing stock.
This investment, he said, would not have been made if the funds had not been received, and so it would not have made a loss.
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