The TSA carried out its latest survey in January 2012 for the quarter ended 31 December 2011, receiving responses from providers owning and/or managing more than 1,000 homes.
Key conclusions from this quarter’s survey include:
•New facilities of £842 million were arranged in the quarter (an increase of 22% over those arranged in the last quarter – £693 million)
•The sector reported total agreed loan facilities of £64.1 billion, of which £52.6 billion is currently outstanding, leaving a further £11.5 billion of undrawn facilities
•The planned draw downs in the next 12 months total £4.8 billion (September was also £4.8 billion)
•In Affordable Home Ownership (AHO), 2,027 first tranche sales were achieved in the quarter (September 1,870). However, there was an increase in the unsold shared ownership units from 3,077 in September to 3,285 remaining unsold, of which 1,233 had been unsold for over 6 months (September 1,200)
•2,077 new AHO homes were developed in Quarter 3 compared to 1,699 in Quarter 2. The pipeline for AHO completions suggests that a further 12,645 new homes will be completed over the next 18 months. This is a slight reduction in the projections provided in Quarter 2 (13,187)
•Total asset sales of £389 million (September £426) were achieved in the quarter generating a surplus of £104 million (September £116 million). As in previous quarters, 50% of the sales were attributable to shared ownership homes.
The TSA’s Deputy Director of Regulatory Operations, Jonathan Walters said, “The TSA’s latest Quarterly Survey shows how the sector is responding responsibly to the difficult conditions affecting the wider economy and the sector as a whole.
“It is a mixed picture, but providers are showing an awareness of their operating environment. Conventional lending is limited to a small number of banks, mainly lending to their existing customers on shorter terms, although the survey illustrates that associations continue to be able to access finance where needed.
“In response to pressures on funding availability and a general slowdown in the housing market, it is reassuring to see providers are taking a responsible position and are managing their risk exposures and protecting their tenants.”
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