Housing associations plan to go private
The Financial Times reported that housing associations are expecting grant funding from the government to dry up when the existing £4.5bn programme of grants to build new social housing runs out at the of the existing three-year funding period.
Speaking to the FT Simran Soin, finance director at Places for People, one of the UK’s largest housing associations by units, said: “We are working off the assumption that there will be little or no grant funding at all after 2015.
“Some housing associations are talking about stopping building altogether and just managing their existing portfolios, but we are looking at alternative funding sources.”
Some of the alternative sources of finance being looked at by Soin are increasing social housing rents and bringing in equity investors.
London & Quadrant, among housing other housing associations, said they were looking at building more private rented housing to help fund development.