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Investment and labour main concerns for Scottish social housing sector post-Brexit, survey shows
The main concerns posed by Brexit for housing associations and co-operatives in Scotland are private sector lending and labour costs, a new survey of the sector reveals.
The Scottish Federation of Housing Association (SFHA) asked its 158 members for their views on Brexit and the impact that the ongoing uncertainty is having on the sector. The short snapshot survey was a follow-up to more in-depth research done in 2016.
All respondents agreed that the main concerns remained the same: the capacity to deliver social housing developments, labour costs, and financing via private sector investment and European funds.
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A major worry that was not highlighted in 2016 was the increased costs if the UK were to leave the customs union. Should the pound fall, it would raise pressure on costs and affect the salaries of 15,000 people working in the sector.
Concerns were also raised about long-term economic uncertainty, which would have a negative impact on growth, inflation, interest rates, business confidence and lenders’ attitude to risk.
One organisation currently raising finance to build more social homes was told that uncertainty was making lenders nervous and that this would be likely to negatively impact the rate offered.
This marked a change from the slightly more optimistic 2016 survey, in which the majority said there had been no negative feedback from lenders.
In addition, organisations that rely on EU funding for employment training for residents are concerned about how this will be replaced in the future.
In some areas of Scotland, there are already difficulties in the sourcing of skilled workers for repairs and development, and this could significantly worsen after Brexit.
When asked if they had any evidence of opportunities that might arise as a result of the proposed Brexit deal, the majority said they did not.
Sally Thomas, chief executive of the SFHA, said: “While housing providers are doing all they can as part of the current programme, ensuring investor interest in the long term is vital if the people of Scotland are to get the homes they need and deserve.”
