‘A tale of two sectors’ ahead for housing as providers take on challenges and new opportunities

A tale of two sectors looks at recent housing policy changes in the context of the impact on housing association and local authority business plans. It has conducted over 24 interviews involving senior professionals from within housing, local government and the finance sectors, analysing their views and making projections on likely operational responses.

The study has so far found a divergence of views on the path ahead – a tale of two sectors. But it has also found a determination among housing providers to be a part of the solution; the housing crisis will continue to worsen without new development and providers are actively looking at a range of options for making this happen including altering the tenure mix.

The study has also picked up on opportunities to develop products and tenures for a variety of groups in housing need which housing associations have not traditionally accommodated. Some housing associations have begun this process already, whilst others appear more reluctant. There are also a range of new voices – notably from business – expressing concern that a failure to build more homes will result in a less mobile workforce and impact on productivity.

In relation to the decisions facing the sector, Moat’s Chief executive, Elizabeth Austerberry, said:

“Certainly, there is an acknowledgement that we as housing providers face challenges. But we are determined to continue developing and each housing association will find its own way of doing this. This paper underlines the diversity of the sector; we all have different strengths and it is important that we capitalise on these strengths to continue addressing housing need whilst ensuring that we build strong and stable businesses.

“It is also important to remember that housing need is changing; there are many people on a range of incomes who are struggling to afford a home, either to rent or buy. Business needs a mobile workforce, which in turn needs to be properly and affordably housed. The sector’s response to current challenges – whether we move as one or opt for different solutions – will have a significant impact on national productivity and economic growth.”

The full study will be released in November 2015.