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13 July 2020

Global Account figures reveals robust housing sector in Wales

We have published the Global Accounts report today which shows the vital role of Welsh Housing Associations to the economy in Wales, with over £2billion spent in 2018/19.

We commissioned the report in partnership with Welsh Government, gathering financial statements from 34 of the largest housing association in Wales, which shows that the social housing sector in Wales continues to grow.

The results demonstrate a financially robust sector with a clear commitment and capability to support the provision of affordable housing across Wales, significantly contribute to the Welsh economy and help mitigate the impact of poverty on people’s lives. Over the longer term, the vision of the social housing sector is to build 75,000 homes by 2036, and to realise this ambition the sector needs strong financial foundations with resilient year-on-year performance.

Key highlights from the report include:

  • Housing associations in Wales have directly spent £1.3bn, with 85% of that retained in Wales.
  • For every £1 received from Welsh Government, housing associations invest £5.73 back into the economy.
  • Turnover for the year was £1,006m; an increase from £954m in 2018. Turnover is forecast to rise by 4% per annum to £1,224m by 2024.
  • Housing fixed assets, before depreciation, have continued to rise and now stand at £7.9bn, a 6% increase from 2018. Housing assets are predicted to rise by an average of 8% per annum to £11.5bn by 2024.
  • Housing associations continue to support around 25,000 FTE jobs in Wales, directly and indirectly.
  • Housing associations in Wales own and manage nearly 165,000 homes, a net increase of 1,838 from the previous year.
  • £399m was invested in developing new homes in 2019, a rise from £325m in 2017/18.
  • The average turnover per social housing property has increased from £5,250 in 2018 to £5,459 in 2019 representing a rise of 4%.
  • Capital and Reserves levels are now £1.17bn (2018: £1.15bn), demonstrating the confidence lenders have in the social housing sector.

Steve Evans, Assistant Director, Finance & ICT at Community Housing Cymru said:

“The public health crisis caused by the pandemic this year and the resulting economic challenges we face as a nation make it more important than ever that we maintain a strong financial base to invest in communities, homes and people.

The Global Accounts report demonstrates an ongoing commitment between housing associations and Welsh Government to deliver on our ambition of a Wales where good housing is a basic right for all. We have the capability to make a difference and support the provision of quality, affordable housing across Wales, stimulate the Welsh economy and help mitigate the impact of poverty on people’s lives.”

Read more here.