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Housing associations’ environment likely to become more difficult, says report
Housing associations are likely to face a more difficult political and economic climate in a decade’s time, according to a study predicting the future of social housing providers.
Analysis by the London School of Economics on behalf of 22,500-home landlord Flagship, published today and seen exclusively ahead of publication by Inside Housing (see below), warns that associations “would do well to re-examine their strategies” in anticipation of the sector coming under extra pressure.
The study sets out three potential future scenarios. In one, housing associations are “trusted partners” of government, boosted by a strong economy and favourable policies.
The second sees the sector “tread water” with housing market uncertainty and increasing capital costs, and in another it is “embattled”, with landlords forced to dramatically alter their business plans due to increasing tensions on commercial and social activities.
It predicts that the actual outcome will be a mixture of the latter two scenarios as housing associations deal with the fallout from the Grenfell disaster and welfare reform – which it says “looks to be the biggest challenge to associations’ core activities”.
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However, the researchers also concluded there will be significant opportunities for landlords to diversify and use new technologies.
They point to closer collaboration with local authorities, the NHS and commercial build-to-rent developers, as well as greater use of volumetric construction and artificial intelligence as ways to shore up the sector’s future.
Jack Weaver, public affairs advisor at Flagship, said: “The underlying message from the research was that the future will be challenging but despite uncertainty, the future of the sector is up to us and will be shaped by the decisions we make now.
“We now have a real opportunity to embrace changes and innovation. By doing so we can continue providing homes for people in need long into the future.”
The research was conducted through roundtable discussions and interviews with housing associations, local authorities, the Homes and Communities Agency and government.
