Financial statements published for Welsh housing associations

Community Housing Cymru, the representative body for housing associations and community mutuals in Wales and the Welsh Assembly Government, which part funds and regulates their activities, have for the first time, jointly published a summary of the 2007 financial statements of associations.

‘Spotlight on Success’ reveals the housing association sector in Wales is growing. It currently has over 75,000 homes (5 per cent of all Welsh homes), makes an enormous contribution to the physical economic and social transformation of communities, employs over 4,000 people and spends over £300 million in the Welsh economy every year.

A brief summary of 2007 is as follows:

·Gross cost/valuation of housing properties is now £3.1 billion

·Capital grants increased to £2 billion

·Debt increased to £809 million

·Turnover is £293m, operating costs rose to £244m producing an operating surplus of £49million

·The surplus for the year is £15million

These figures demonstrate that Welsh Housing associations have established a reasonable financial basis to continue to provide homes and services and are continuing to invest in existing homes in order to meet and maintain the Welsh Housing Quality Standard.

Costs faced by housing associations in key areas such as building and maintaining homes and paying staff have increased substantially in recent years.

In recent months the housing market has seen significant change, and the 'credit crunch' has seen forecasters predicting greater difficulties for all housing providers in accessing funds. The challenges ahead will mean a greater focus on the governance exercised by associations and particularly their boards of management.

Nick Bennett, chief executive of Community Housing Cymru said: "This report sets the financial performance of the housing association sector in a wider context. Welsh Housing Associations are mature and financially robust and have the potential to continue growing.

The forthcoming review of the regulatory framework for housing associations in Wales will set new and significant challenges. The not for profit Housing movement has consistently asserted that with the right regulatory environment we would be able to invest an additional £112 million in Welsh social housing and community regeneration over the next 4 years."