2013 cambridge developing solar energy industries in mena,jonathan walters
NHF Risk Conference - Jonathan Walters
-
Upload
homes-and-communities-agency-hca -
Category
Government & Nonprofit
-
view
486 -
download
0
Transcript of NHF Risk Conference - Jonathan Walters
The social housing regulator
Successful places with homes and jobs
A NATIONAL AGENCYWORKING LOCALLY
The key challenges for social housing providers
The social housing regulator
Life was already getting more complex for providers Gone: core assumptions
about rented products
Gone: the grant/bank debt funding model
Going: Rents always going up
More market exposure
Complex choices for Boards
Opportunities and risks
A more cyclical model
The social housing regulator
And then this happened…
The social housing regulator
And then that happened…
The social housing regulator
And this is yet to come…
The social housing regulator
Some cyclical factors are helping the sector…for now
The social housing regulator
There is financial strength – in aggregate
The social housing regulator
But financial strength is spread around unevenly…
The social housing regulator
Property sales are increasingly important…
2014 20130
100
200
300
400
500
600
700
14685
199
128
251
222
Shared ownership staircasing Sales to other RPs Other sales of housing properties
Surp
lus o
n th
e sa
le o
f fixe
d as
sets
(£m
)
The social housing regulator
And property sales could become more important…
The social housing regulator
But structural change is already underway
The social housing regulator
The sector’s income sources are changing
The social housing regulator
The business model for providers is changing…
ASSETS
Right to Buy
New Develop-
ment
DiversificationHousing Market Sales
Existing Stock
The social housing regulator
And the financing of that business is becoming more complex…
LIABILITIES
Counterparty Risks
Liquidity
Existing Debt
New DebtIndex Linked
Debt
Hedging Strategies
Accounting Issues
The social housing regulator
And the sources of finance more diverse…
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000
BankBondLease
The social housing regulator
Meanwhile, the core business is not getting any easier…
INCOME Rents
Supported Housing
COSTS Differential Inflation Rates
Pension costs
The social housing regulator
However…Don’t despair!
A well-run social housing provider should not get into serious difficulties
The social housing regulator
There are some key issues for boards and exec teams to consider What is the right strategy for our business?
Where do we want to be in 5 -10 years?
What do our charitable objects means for us in this new world?
What is the right development mix for our business?
What is our home ownership offer for our tenants?
The social housing regulator
What is the role of the regulator? We don’t have the answer for your (or anyone else's)
business We seek assurance that boards and executives are
managing the business effectively and have a thorough understanding of their risks
Where we have concerns that this is not happening it is reflected in our regulatory judgements and we look to providers to remedy the situation
Where they can’t or won’t respond then we look to use our power proportionately to bring the provider back into compliance with our standards
The social housing regulator
Hopefully this is the future…