Housing Finance - Hear from our Finance Policy Advisory Group
We recently asked members of our finance policy advisory group (FPAG) about their biggest challenges in the sector today and what they are planning on prioritising for the next 18-24 months, and here is what they had to say.
We recently asked members of our finance policy advisory group (FPAG) about their biggest challenges in the sector today and what they are planning on prioritising for the next 18-24 months, and here is what they had to say.
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#NHF<strong>Finance</strong><br />
finance.housing.org.uk<br />
<strong>Hear</strong> <strong>from</strong> members of NHF's<br />
<strong>Finance</strong> <strong>Policy</strong> <strong>Advisory</strong><br />
<strong>Group</strong> (FPAG)
James Walder, Executive Director of <strong>Finance</strong> & Business Support, North Star <strong>Housing</strong><br />
<strong>Group</strong> Ltd<br />
1.What do you consider to be the biggest challenge in the sector today?<br />
The main challenges that the sector is facing:<br />
Continued financial pressure <strong>from</strong> high inflation and high interest rates<br />
The ever growing investment requirements in existing properties putting pressure on finances, debt<br />
and the supply chain<br />
Supporting customers in an increasingly challenging environment<br />
2.What are y<strong>our</strong> priorities for the next 18-24 months?<br />
Investing in <strong>our</strong> existing properties and continuing to develop much needed new social housing. We also<br />
need to focus on the Consumer standards and all this whilst maintaining <strong>our</strong> financial resilience.<br />
#NHF<strong>Finance</strong><br />
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Steve Aleppo, Executive Director of <strong>Finance</strong> & Governance, Eastlight Community Homes<br />
1.What do you consider to be the biggest challenge in the sector today?<br />
Increasing pressure to do more with less, compounded by uncertainty about what the new rent<br />
settlement post-2025 will be.<br />
2.What are y<strong>our</strong> priorities for the next 18-24 months?<br />
Rethink res<strong>our</strong>ce allocation to support changes we need to make to understand customers better<br />
and improve their experience of <strong>our</strong> services.<br />
Grasp opportunities to improve insight and efficiency offered by new technologies – don’t fall<br />
behind.<br />
Ensure we are an employer that can attract, develop and retain the best talent.<br />
Preserve options and agility to move quickly to secure funding in an uncertain market.<br />
#NHF<strong>Finance</strong><br />
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Phil Elvy, Executive Director of <strong>Finance</strong>, Great Places <strong>Housing</strong> <strong>Group</strong><br />
1.What do you consider to be the biggest challenge in the sector today?<br />
Meeting increasing customer expectations. These expectations are often set by next day delivery<br />
type services (Amazon etc). That is a real challenge for RPs who provide failure demand-led services<br />
like repairs.<br />
Costs and complexity of delivering building safety – where the supply chain is shallow and everyone<br />
is under the same deadline pressure, which is bound to drive up costs.<br />
Affordability the April 2024 rent increase, following the 7% increase in April 2023 means <strong>our</strong> average<br />
rents will have moved <strong>from</strong> comfortably below £100 per week to well over £100 per week in a<br />
relatively short period, which feels like a major milestone.<br />
#NHF<strong>Finance</strong><br />
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Government expectations. Our sector needs to be a key delivery vehicle for new homes, but is<br />
simultaneously being asked to retrofit <strong>our</strong> existing homes to achieve net zero carbon homes. Much of<br />
that retrofit is reliant on a currently limited supply chain and emerging technology.<br />
2.What are y<strong>our</strong> priorities for the next 18-24 months?<br />
To try to rebuild <strong>our</strong> operating margin and interest cover levels whilst also delivering all of the above at a<br />
time when the cost of debt has risen significantly.<br />
#NHF<strong>Finance</strong><br />
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Julian Pearce, Chief Financial Officer, bpha<br />
1.What do you consider to be the biggest challenge in the sector today?<br />
Impending wave of regulatory requirements which will be costly to implement, whilst financial envelope is<br />
limited following last year’s rent cap.<br />
2.What are y<strong>our</strong> priorities for the next 18-24 months?<br />
Embed TSM’s, manage arrears, consider building safety requirements on higher buildings, raise funding.<br />
#NHF<strong>Finance</strong><br />
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Kal Kay, Chief Financial Officer, Y<strong>our</strong> <strong>Housing</strong><br />
1.What do you consider to be the biggest challenge in the sector today?<br />
Significant investment in existing assets which don’t increase the revenue and therefore unable to raise<br />
debt to fund it.<br />
2.What are y<strong>our</strong> priorities for the next 18-24 months?<br />
Making <strong>our</strong> existing stock safe, understanding the underlying financial position to drive efficiencies, and<br />
consider the next stage in <strong>our</strong> treasury strategy.<br />
#NHF<strong>Finance</strong><br />
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Nathan Mallows, Director of <strong>Finance</strong>, People and Change, Coastline<br />
1.What do you consider to be the biggest challenge in the sector today?<br />
Maintaining/improving quality of service against a tough economic environment whilst ensuring enough<br />
operational bandwidth to tackle housing crisis in all its forms (i.e. need to keep developing new homes<br />
which is easy to stop but doesn’t address the housing shortage).<br />
2.What are y<strong>our</strong> priorities for the next 18-24 months?<br />
Managing <strong>our</strong> programme of change<br />
Investing in colleagues and supply chain resilience<br />
Supporting customers<br />
Developing new homes<br />
Continuing to invest in partnership working<br />
Looking for ways to do things better<br />
They are always the priorities but the order, importance and complexity of them changes at different<br />
points.<br />
#NHF<strong>Finance</strong><br />
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Shaeen Azam, Director of <strong>Finance</strong> and IT, Golden Lane <strong>Housing</strong><br />
1.What do you consider to be the biggest challenge in the sector today?<br />
Financial – rising inflation, interest rates, cost of living crisis<br />
Obtaining insurance brokers<br />
Lack of trade staff<br />
Struggling to recruit good financial expertise<br />
We are experiencing challenges attracting a wide range of contractors due to the dispersed nature of <strong>our</strong><br />
properties.<br />
2.What are y<strong>our</strong> priorities for the next 18-24 months?<br />
Keeping supported housing on the government agenda, rent settlement, business planning, raising<br />
additional funds, increasing development to respond to increasing need and ensuring value for money.<br />
#NHF<strong>Finance</strong><br />
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Steven Brook, Chief Executive, Harrogate <strong>Housing</strong> Association<br />
1.What do you consider to be the biggest challenge in the sector today?<br />
Being able to build the affordable homes which are desperately required as funds are distributed to tackle<br />
the other major financial challenges of fire safety and damp and mould.<br />
2.What are y<strong>our</strong> priorities for the next 18-24 months?<br />
Delivering <strong>our</strong> development ambitions – as a small association (300 units) with a large development<br />
programme (over 100 additional units). In addition moving <strong>our</strong> existing properties to EPC C by 2028.<br />
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