Northern Ireland sector operating surplus rises 15%

The global accounts, which analyse the accounts of Northern Irish housing associations, found the sector’s operating surplus increased from £58m in 2014/15 to £66.9m in 2015/16 – a 15.3% rise.

The figures, which were compiled by the Northern Ireland Federation of Housing Associations (NIFHA) and released in full to Inside Housing this week, also show a jump in turnover of 10%, from £257.1m in 2014/15 to £282.8m last year.

Cameron Watt, chief executive of NIFHA, said the figures showed that “housing associations are in a positive financial position and are well-managed and viable organisations”.

According to the accounts, the sector’s surplus for the year jumped by 57.4%, from £26.9m to £42.4m. This was largely due to “other costs”, including pension costs, merger income and impairments.

Operating margin grew to 23.7%, compared to 22.6% the year before.

There are currently 22 housing associations in Northern Ireland, following a number of mergers. The sector’s two largest associations – Helm and Fold – are also set to merge to create a 12,000-home landlord.

Housing associations completed 1,500 new social homes in 2015/16, and are preparing to develop 2,000 homes a year by the end of 2020.

Operating costs increased by 8.4% to £215.9m. Profit from asset sales reduced by 25% to £844m.

Mr Watt added: “Welfare changes and other potential threats to rental income, such as a cap on housing benefit at the Local Housing Allowance rate, will undoubtedly put pressure on that financial strength.

“However, our members are innovative and creative and as well as continually improving services to existing customers, they are extending their housing offer, including new homeownership options.

“Over the next few years, the housing association sector has ambitious plans. We aim to support tenants through welfare changes, maximise housebuilding and use our wider investment to unleash potential in the communities we serve.”