Reflections from Liverpool
Once again, THFC had a strong presence at the National Housing Federation (NHF) Social Housing Finance Conference & Exhibition in Liverpool on the 13th and 14th of March. With well over 1,000 social housing leaders in attendance, the event was brimming with a renewed sense of optimism and purposefulness after a couple of challenging years for the sector.
In addition to attending the dozens of fascinating sessions, the THFC team also made the most of the opportunity to meet face-to-face with customers, contacts, and colleagues new and old.
Day 1 of the conference commenced with a presentation on the big economic picture for social housing, with the fitting “glass half full/empty” metaphor used to describe the current landscape for housing associations. The expression was used multiple times throughout the conference with sentiment broadly falling under the “half full” category, illustrating the cautious optimism attempting to burst through across the sector in hopes of better times ahead.
Driving the push for retrofit
One of the most ubiquitous topics at the conference was that of retrofit funding and sustainable finance. Arun Poobalasingam, THFC’s Funding and Marketing Director, spoke in a panel on the subject of “How to fund your retrofit project.” In this session, Arun emphasised the importance of innovation and partnership working when devising retrofit funding solutions. He also raised the debate of who – housing associations or tenants – should benefit from energy efficiency savings stemming from retrofit projects and whether it really matters.
In a session about the evolving insurance landscape, Yvonne Moore from Zurich Municipal spoke about rising insurance premiums and linked this to the fact that insurers are building up reserves to manage future risks rather than just claims history. She also spoke about global warming as another factor, driving home to audience members the wider impacts and importance of retrofit.
You can read more about THFC’s views on retrofit funding in this article published by Sarah Williams, Editor of Social Housing Magazine, and in this blog which Arun authored ahead of the conference.
Another key theme that came out of the conference was the importance of data integrity. In a new age of consumer regulation and ESG reporting, and with a heightening focus on retrofit, it has never been more important for housing associations to invest in robust internal data collection and monitoring processes so they can hold an accurate view of their stock condition.
Adjusting to an evolving landscape
The new consumer regulation regime was also a key topic at the conference. In a session about the changes coming in 2024, our former Board member, Will Perry, Director of Strategy at the Regulator of Social Housing (RSH), and Karen Doran, Director of Regulatory Engagement at the RSH, spoke about the new “C” regulatory rating. This will be given based on how well social housing providers comply with the new consumer standards. It is yet to be seen how this new regulatory scope might affect housing associations’ “V” ratings for financial viability.
From a finance perspective, it is becomingly increasingly evident that we are now in a new higher interest rate environment. Despite constrained balance sheets across the sector, a swathe of investment will be required to fund stock repairs, EPC “C” and the net zero agenda, compliance with new consumer standards, and the ever-present development ambitions.
With so many areas to focus on, housing associations are reviewing the range of funding options available to them across the board.
One of the clearest takeaways from the conference was that housing providers and investors alike are in desperate need of increased certainty and stability from government policies. Longer-term rent settlements, more concrete direction on retrofit targets, and more transparent grant plans will be necessary for housing associations to properly plan for and invest in the future.
In what will be an extremely momentous political year, it is also paramount for sector stakeholders to voice their needs and ensure that the sector’s voice is heard at this critical time.
While there will never be a golden bullet solution to solve the housing crisis, the Social Housing Finance Conference & Exhibition provided the invaluable opportunity for the sector to voice its needs and discuss solutions to the most pressing housing issues of today.
As Jonathan Walters, Deputy Chief Executive of the RSH, eloquently stated, it is crucial “not to wait for change, but to act now, without fear of being judged on the choices to be made.”
With 142,000 homeless children living in the UK, his words could not ring more true. The social housing sector must stand together in its common purpose to provide homes and better livelihoods to the millions of people depending on it.
A glass half full
With plenty of turbulence facing the social housing sector today, THFC chooses to adopt a “glass half full” approach. There will undoubtedly be many challenges ahead, but the social housing sector is an extremely resilient one with a history of stepping up to the plate in difficult circumstances.
As the largest aggregator to the social housing sector, we will continue to press ahead in supporting this incredibly important and purpose-driven sector.