46% Van de Britse woningcorporaties heeft problemen met herfinanciering van hun leningen
Via insidehousing.
Wat is de stand in Nederland?
weblog.
Survey of 100 landlords reveals struggle to secure finance
Half of associations hit by funding woes
05/06/2009 | By Martin Hilditch
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Forty-six per cent of housing associations have experienced problems renewing their loan facilities or securing funding for new schemes, auditors have warned.
A quarter of those associations have had individual banks refuse to lend them any money at all, according to a new survey of 100 senior association executives by auditors Baker Tilly.
The research, seen exclusively by Inside Housing, reveals how the financial crisis has deepened and spread throughout the sector in the past year.
It found that 96 per cent of associations thought the credit crunch was having a significant impact on the sector – up from 78 per cent last August.
Ninety-four per cent now expect their peers to suffer ‘significant financial difficulty’, compared with 75 per cent in Baker Tilly’s 2008 survey.
In response to the recession, 78 per cent of associations surveyed have scaled back on commercial development activities and 61 per cent are ‘actively cutting costs’. In 2008 those figures stood at 54 per cent and 35 per cent respectively.
Gary Moreton, chair of Baker Tilly’s social housing group, said he was surprised that 26 per cent of those experiencing problems with lenders were saying ‘actually, the banks weren’t prepared to lend’.
‘My perception is that banks by and large are still lending,’ he said. ‘That being said, there are probably some banks saying “don’t bring it to me – we are over-exposed in a particular part of the market”.’
Associations also provided details of the steps they are taking to cut costs. Eighteen per cent said they had considered or implemented a redundancy programme. Thirty-eight per cent had either restructured their organisation or were considering doing so and almost a third had reduced or frozen recruitment or were planning to do so.
Mr Moreton said that associations and their staff were still faring better than their counterparts in most other sectors. ‘About a fifth [of housing associations looking to cut costs] are considering or implementing a redundancy programme,’ he said. ‘If you asked that among commercial organisations it would be massively above 25 per cent.’
And most associations believe the recession has given them opportunities as well as problems. Eighty-seven per cent of those questioned said they had taken ‘strategic opportunities’ as a result of the recession.
Sixty per cent of associations said they had been purchasing developers’ excess stock and one in five said they were looking to either merge with or acquire other associations.
Baker Tilly also found that the Homes and Communities Agency had won higher levels of approval in the sector than the Tenant Services Authority since the two agencies launched in December.
Sixty-nine per cent of those questioned felt the HCA was providing sufficient support in the economic downturn, compared with 51 per cent for the TSA.
Opinion: There is no room for compacency in the midst of recession
Gary Morton
Sentiment in social housing has dramatically changed since autumn last year. The effects of the credit crunch are now felt nearly everywhere, with 96 per cent of housing associations saying they are feeling a significant impact, up from 78 per cent in our previous survey.
Our latest survey also reveals that cost-cutting and other restructuring programmes are in full swing, and the vast majority of senior executives have revised their risk strategies and financial forecasts in the light of changing economic conditions.
It is striking that 94 per cent of associations expect their counterparts to suffer financial difficulties in the next 12 months. A third feel that more than 11 per cent of the sector will be severely affected. That number is far higher than the handful of organisations the Tenant Services Authority has publicly said are under scrutiny. We cannot ignore these findings, as perceptions can have a real effect on confidence – and on the attitudes of bankers.
On the positive side, 87 per cent of respondents believe the present climate provides opportunities. Sixty per cent say they are purchasing excess stock from private developers, 40 per cent are acquiring land and 51 per cent seeking strategic alliances.
But the attitudes of financial institutions may still put limits on associations seeking to take these opportunities. More than a quarter of respondents report that their banks are unwilling to lend, and 46 per cent have experienced problems with their lenders. The Homes and Communities Agency is providing considerable funding to the sector, but this on its own is not enough. Bankers’ appetites for new lending will be a critical factor in meeting development targets.
This sector has shown itself to be dynamic and able to react. However, it has to date been largely shielded from the full effects of the credit crunch, and has certainly not been hit as severely as the commercial sector.
Associations cannot afford to be complacent. Over the next 12 months they will face further challenges, including a possible reduction in rents, a likely change of government and a reduction in public spending. Associations that remain alert and proactive will be in a stronger position when the economy does recover.
Gary Moreton is head of Baker Tilly’s social housing team
Wat is de stand in Nederland?
weblog.
Survey of 100 landlords reveals struggle to secure finance
Half of associations hit by funding woes
05/06/2009 | By Martin Hilditch
PrintEmail
Share Save
Forty-six per cent of housing associations have experienced problems renewing their loan facilities or securing funding for new schemes, auditors have warned.
A quarter of those associations have had individual banks refuse to lend them any money at all, according to a new survey of 100 senior association executives by auditors Baker Tilly.
The research, seen exclusively by Inside Housing, reveals how the financial crisis has deepened and spread throughout the sector in the past year.
It found that 96 per cent of associations thought the credit crunch was having a significant impact on the sector – up from 78 per cent last August.
Ninety-four per cent now expect their peers to suffer ‘significant financial difficulty’, compared with 75 per cent in Baker Tilly’s 2008 survey.
In response to the recession, 78 per cent of associations surveyed have scaled back on commercial development activities and 61 per cent are ‘actively cutting costs’. In 2008 those figures stood at 54 per cent and 35 per cent respectively.
Gary Moreton, chair of Baker Tilly’s social housing group, said he was surprised that 26 per cent of those experiencing problems with lenders were saying ‘actually, the banks weren’t prepared to lend’.
‘My perception is that banks by and large are still lending,’ he said. ‘That being said, there are probably some banks saying “don’t bring it to me – we are over-exposed in a particular part of the market”.’
Associations also provided details of the steps they are taking to cut costs. Eighteen per cent said they had considered or implemented a redundancy programme. Thirty-eight per cent had either restructured their organisation or were considering doing so and almost a third had reduced or frozen recruitment or were planning to do so.
Mr Moreton said that associations and their staff were still faring better than their counterparts in most other sectors. ‘About a fifth [of housing associations looking to cut costs] are considering or implementing a redundancy programme,’ he said. ‘If you asked that among commercial organisations it would be massively above 25 per cent.’
And most associations believe the recession has given them opportunities as well as problems. Eighty-seven per cent of those questioned said they had taken ‘strategic opportunities’ as a result of the recession.
Sixty per cent of associations said they had been purchasing developers’ excess stock and one in five said they were looking to either merge with or acquire other associations.
Baker Tilly also found that the Homes and Communities Agency had won higher levels of approval in the sector than the Tenant Services Authority since the two agencies launched in December.
Sixty-nine per cent of those questioned felt the HCA was providing sufficient support in the economic downturn, compared with 51 per cent for the TSA.
Opinion: There is no room for compacency in the midst of recession
Gary Morton
Sentiment in social housing has dramatically changed since autumn last year. The effects of the credit crunch are now felt nearly everywhere, with 96 per cent of housing associations saying they are feeling a significant impact, up from 78 per cent in our previous survey.
Our latest survey also reveals that cost-cutting and other restructuring programmes are in full swing, and the vast majority of senior executives have revised their risk strategies and financial forecasts in the light of changing economic conditions.
It is striking that 94 per cent of associations expect their counterparts to suffer financial difficulties in the next 12 months. A third feel that more than 11 per cent of the sector will be severely affected. That number is far higher than the handful of organisations the Tenant Services Authority has publicly said are under scrutiny. We cannot ignore these findings, as perceptions can have a real effect on confidence – and on the attitudes of bankers.
On the positive side, 87 per cent of respondents believe the present climate provides opportunities. Sixty per cent say they are purchasing excess stock from private developers, 40 per cent are acquiring land and 51 per cent seeking strategic alliances.
But the attitudes of financial institutions may still put limits on associations seeking to take these opportunities. More than a quarter of respondents report that their banks are unwilling to lend, and 46 per cent have experienced problems with their lenders. The Homes and Communities Agency is providing considerable funding to the sector, but this on its own is not enough. Bankers’ appetites for new lending will be a critical factor in meeting development targets.
This sector has shown itself to be dynamic and able to react. However, it has to date been largely shielded from the full effects of the credit crunch, and has certainly not been hit as severely as the commercial sector.
Associations cannot afford to be complacent. Over the next 12 months they will face further challenges, including a possible reduction in rents, a likely change of government and a reduction in public spending. Associations that remain alert and proactive will be in a stronger position when the economy does recover.
Gary Moreton is head of Baker Tilly’s social housing team
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