The huge economic impact of the 33 housing associations in Wales on the economy has been revealed in new research.
The Global Accounts report, co-produced by the Welsh Government and Housing Community Cymru, the umbrella body for the sector, shows that housing associations directly spent £1.2bn in 2018, of which 84% was retained in Wales.
The indirect supplier effect meant the total contribution to the economy was over £2bn.
The sector owns and manages just over 160,000 properties and directly employs (full-time equivalent) 9,000 people, with its activities supporting a further 1.5 in the wider economy; equating to a total jobs impact of 23,000.
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.
“The report demonstrates a clear ongoing commitment and capability to support the provision of quality, affordable housing across Wales, stimulate the Welsh economy and help mitigate the impact of poverty on people’s lives.”
Combined turnover for the year was £953m; an increase of 5% on 2017 (£908m).
Operating surplus for the year was £192m (compared to £193m in 2017), with a net surplus, after interest payments and before tax, of £79m (2017: £90m).
Most Read
Housing fixed asset levels, before depreciation, are now shown at £7.4bn, a 7.2% increase from 2017.
The report also shows increased borrowings, with the total debt level now standing at £2.8bn, a rise from £2.7bn in 2017. Capital and reserves levels are now £1.16bn (2017: £1.07bn), demonstrating the confidence lenders have in the social housing sector.
The sector is committed to building 75,000 affordable homes for rent by 2036.
Principality Building Society
Moreover, Principality Building Society has announced £75m of new funding to support smaller residential developers and housing associations in Wales to build much-needed new stock.
The funding is in two tranches, with a new specific fund of £50m to back smaller housing developers in Wales, while it has increased a £50m fund launched last year to back smaller housing associations to £75m.
Peter Hughes, divisional managing director of Principality Commercial, added: “The demand for the first tranche of the £50m housing association pot has been strong across Wales. The sector tell us they like the certainty of longer-term funding. As a lender with a strong Welsh identity, we will continue to help deliver the housing agenda in Wales.”
Minister for Housing and Local Government Julie James said: “Supporting SMEs to overcome barriers to building new homes is a key priority for Welsh Government, so we very much welcome lenders such as Principality making this commitment.
Don’t miss
“Principality have been longstanding lenders to housing associations in Wales and we appreciate their continued support to the sector.”
The mutual currently has a lending book of £50m to developers, of which £15.3m is to Welsh-based clients.
Its lending to housing associations currently totals £147m, which is solely lent to Welsh-based social landlords.