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05 July 2018

Global Accounts finance report demonstrates a robust housing sector in Wales

The housing sector in Wales is looking strong, healthy and productive with positive financial results for 2017.

Our Global Accounts financial report is derived from audited financial statements of the largest 33 housing associations. The report presents a picture of a robust sector, showing turnover and balance sheet growth and the continued generation of surpluses necessary to support the building of new homes.

Housing associations in Wales also continue to enhance existing homes by investing heavily in major repairs to ensure houses are of a high quality.

The report, which can be found in full here shows:

The sector now owns and manages 160,636 homes (housing associations provide 62% of the total social housing stock in Wales)

CHC members have directly spent £1.1bn, of which 89% was retained in Wales. The indirect supplier effect alongside this meant the total contribution to the economy was almost £2bn

It’s not just about housing - the sector’s contribution to employment increased further in 2016/17. Over 10,000 full time equivalent jobs were directly employed by the sector and, for every direct job provided, 1.5 positions were supported elsewhere in the Welsh economy equating to over 25,000 jobs

Turnover for the year was £908m; an increase of £3m on 2016

Operating surplus for the year was £193m (compared to £171m in 2016), with a net surplus, after interest payments and before tax, of £59m (2016: £79m)

Increased borrowings - the total debt level is now £2.7bn, a rise from £2.5bn in 2016

Capital and Reserves levels are now £1.07bn compared to £1bn in 2016

The document follows the Public Accounts Committee Inquiry into the regulation of the sector throughout 2016, and is the first Global Accounts to include the Regulatory Expectations and Risk Paper previously published by Welsh Government.

Community Housing Cymru chief executive Stuart Ropke 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 is just one aspect of it. Housing associations help tenants to lead healthy, independent and fulfilling lives at home and within the community, by regenerating areas, creating jobs, and providing the right support, such as budgeting advice.

“We are looking forward to contributing to the independent review of housing policy to increase the number of homes we build, and meet our goal of building 75,000 homes by 2036.”