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Social rent homes started by housing associations rise in latest NHF supply survey

The number of social rent homes delivered by housing associations in the final three months of last year is the highest since the National Housing Federation (NHF) began collecting development figures in 2016.

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Housing associations accelerate completions as number of social rented properties grows #ukhousing

The latest NHF quarterly Supply Survey found that a total of 1,707 social rent homes were started in the three months up to and including December last year, higher than the 1,155 homes started in the same quarter in 2017/18.

The figure was also nearly 500 homes higher than the previous three-month record of 1,228 in the first quarter of 2016/17 – the highest number since the NHF began compiling its records three years ago.


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The report, which surveys 86% of total stock owned by developing housing associations, found that private sale homes were down year on year, with 1,100 started in the quarter.

This was a 21% reduction on the 1,397 homes started last year and the first time that the NHF survey has recorded more social rented homes than those for the open market in a single quarter.

The rise in social rent starts coincides with a increase in the amount of available grant for associations to deliver this tenure of home.

In July 2017, the mayor of London revealed he would be allocating £1.7bn of grant funding to housing associations and councils to build just under 50,000 homes in London. This included money for a total of 17,000 social rent homes in to be built in the capital by 2021.

Homes England, the government’s housing delivery agency, has said it will support the delivery of 130,000 homes under its Shared Ownership and Affordable Homes Programme by March 2023, including at least 12,500 social rent homes.

The rise of shared ownership properties has continued: housing associations started 4,221 homes in the quarter, up from 3,335 in the same period in 2017/18.

Housing starts across the sector rose, up almost 10% at 11,420 for the three-month period covering October to December.

But the NHF warned that without investment from the government, developing landlords could struggle to keep up the pace.

Monica Burns, head of member relations at the NHF, said: “This shows that the sector is continuing to build now, but there is a risk that economic and political uncertainty could start to take its toll. This means that public investment is more vital than ever if we want to be serious about building enough affordable housing.

“At the upcoming Spending Review, the government has a chance to put its money where its mouth is and invest in social housing.”

Of the homes 11,456 homes completed across the quarter, 85% were affordable, including 1,300 which were for social rent while 1,236 were for market sale. Around 46% of completed homes were delivered outside the Affordable Homes Programme, while 61% were delivered through Section 106 agreements.

The majority of development is taking place in London and the South East, the NHF found, with comparatively fewer homes being built in the North East and Yorkshire and the Humber.

Housing associations are also building few homes for market rent than ever – just 30 market rented homes were started in the period, compared with 684 in the same quarter two years previously.

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