The rise and rise of the Housing Association

25/04/2019
By: LSL Land & New Homes

The rise and rise of the Housing Association

The results from the FIRST TIME buyer Readers Awards 2019 ‘Best Large Development for 2019’ have now been released. The award is for developments consisting of more than 80 new homes that are designed to create affordable, desirable and inspirational environments, that also provide additional facilities that benefit the local area. It should come as no surprise that a number of Housing Associations were among the contenders.

Housing Associations strengthen market positionIn an era where affordability and environmental responsibility have become key issues, Housing Associations are leaping forwards in bounds. An example of this is Bolton at Home’s HBOS funded acquisition of Arcon Housing Group. As part of the same financing deal, Bolton at Home has obtained funding to construct 785 extra homes over the next three years. This brings their total homes planned for the period to 960.

Within the overall housing market, Housing Associations are becoming ever more significant players that can achieve considerable cost efficiencies through economies of scale. The size and stability of Housing Associations facilitates access to finance to allow them to respond quickly when opportunities present themselves.

An indicator of this is a recent trend for some Housing Associations to be offered developments from private builders at discounted rates. Builders benefit by being able to sell some of the more difficult-to-sell properties as a way of bolstering their end of year sales results. Housing Associations benefit by being able to access government grants to convert the properties into affordable or social housing solutions.


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