Social housing sector resilient in uncertain economic environment

Other key findings from the survey are:

* Agreed loan facilities are reported at £62.8billion of which £49.7billion (79%) is drawn, leaving undrawn facilities of £13.1billion;
* Planned draw downs over the next 12 months are forecast to be £4.7billion (January £5billion);
* The numbers of unsold LCHO homes increased by 7.8% to 4131 (January 3831);
* 45% of the unsold homes were reserved or contracts had been exchanged;
* The number of units unsold for more than six months showed a decrease of 17% to 1204 (January 1452) and now stands at 29% of the total unsold homes stock.

Key challenges identified in the survey include the reduction in public subsidy, increasing interest rates and inflation, changes to accounting policy, the continued weakness in the housing market and tighter funding conditions.

However, the survey concludes that to date the sector has coped well with the management of these challenges and the TSA believes it will continue to adapt to a changing operating environment and demonstrate its resilience.
 
TSA Deputy Director of Regulatory Operations, Jonathan Walters said: "The sector remains an attractive investment to lenders and has proved robust during difficult times.

"We are aware that providers face a number of complex and potentially inter-linking risks. However, we believe that the sector will continue to manage these challenges well and demonstrate its resilience."

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