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23 September 2021

Social housing sector’s vital importance to the Welsh economy shown in latest accounts

Social housing sector’s vital importance to the Welsh economy shown in latest accounts

Thousands more jobs are being created through housing, thus demonstrating the sector’s vital importance to the Welsh economy, new figures reveal.

Housing sector playing a vital role in job creation in Wales

The latest Global Accounts show that housing associations support around 27,000 FTE jobs in Wales either directly or indirectly. This is an increase from 25,000 the year before.

The latest financial position of housing associations has been gathered by Community Housing Cymru from 34 of the largest associations in Wales.

The results, which run up to the end of March 2020, continue to show the sector is financially robust, with turnover increasing from £1,006 in 2019 to £1,066. Any financial impact caused by the global pandemic is likely to be seen in next year’s accounts.

Other key highlights from the report show:

  • The sector now owns and manages 166,439 homes with general needs properties and retirement accommodation accounting for 90% of this figure.
  • CHC members have directly spent £1.3bn of which 85% was retained in Wales, and with the indirect impact means the total impact of the sector on the Welsh economy equates to over £2bn.
  • Housing fixed asset levels, before depreciation, are now shown at £8.4bn, an increase of 6.3% from £7.9bn in 2019.
  • Increased borrowings - the total debt level is now £3.2bn, a rise from £3.0bn in 2019.
  • Capital and Reserves levels are now £1.25bn, up from £1.17bn in 2019.

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

The latest Global Accounts report demonstrates the tangible positive impact housing associations can have on the Welsh economy.

As we move out of the pandemic, it’ll be vital that the sector continues to invest not just in people through job creation, but in building and improving housing stock to help Welsh Government deliver on our ambition of a Wales where good housing is a basic right for all. These accounts show 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.