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Welsh housing associations increase surpluses by 12.7%

Housing association surpluses in Wales grew 12.7% last year despite a slowdown in turnover increases, the sector’s global accounts show.

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Welsh housing associations increase surpluses by 12.7% #ukhousing

The 2016/17 global accounts for the 33 largest Welsh housing associations, published today by trade body Community Housing Cymru (CHC), showed that the sector achieved an operating surplus of £193m, up from £171m the previous year.

Turnover rose to £908m – but the margin of increase (0.3%) was significantly smaller than in 2015/16 (4.9%) and 2014/15 (9.1%).

CHC said the slowing growth was due to a reduction in the maximum rental uplift housing associations could apply in 2016/17 and because a £30m lump of energy efficiency funding available in 2015/16 was not repeated last year.

The sector also reduced operating costs to £715m in 2016/17, down 2.6% on the previous year – bucking a trend of increases in 2015/16 (of 5.3%) and 2014/15 (of 8.6%).


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Stuart Ropke, chief executive of CHC, said: “The global accounts document is a reflection of a sector with a clear track record of delivery, and a growing ambition to deliver the homes Wales needs for good housing to be a basic right for all.

“Housing associations are playing a key economic role, and embracing creative solutions to generate income streams so homes continue to be affordable, are of good quality and meet the needs of the local community.”

Housing associations in Wales contributed almost £2bn to the Welsh economy in 2016/17, CHC said, directly spending £1.1bn, of which 89% stayed in the country.

The sector’s total debt level is now £2.7bn, up from £2.5bn in 2015/16, while it now owns and manages 160,636 homes.

The Welsh Government has commissioned an independent review of affordable housing policy in Wales, due to provide recommendations by April next year.

The sector’s housing associations have pledged to build 75,000 homes by 2036.

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