A new study conducted by Savills has revealed that Housing Associations in the UK could deliver an additional 44,000 new homes a year. According to the report “Releasing untapped potential for more Housing,” the Housing Associations have the financial capacity to double their contribution to the housing stock by implementing asset-backed borrowing.
The finding is significant considering that England needs 300,000 new homes a year to bridge the existing gap between demand and supply. The role of the Housing Associations in reducing this gap is important. However, the government has to support the Housing Associations in the form of subsidy if they have to play an active role. The government also needs to enlist the support of the Housing Associations in meeting its housing targets.
The Savills Research team found out that the Housing Associations have an additional borrowing capacity of £7.4bn to build extra new homes in the UK. It has suggested to the Local Authorities to allocate sufficient lands for development of residential houses. Targeted use of public land would help Housing Associations to secure land at zero or low value to deliver shared ownership or affordable rent housing.
Though the Autumn Statement holds promise for the housing sector, it is to be seen how the announcements will be rolled out.
The firm identifies the potential for housing associations to deliver 44,000 extra homes a year in just over a decade, through additional borrowing against existing assets and a greater partnership approach across the sector.