Our latest housing sector report covers the recent issues imposed on housing associations. Debbie Watson, Director at Grant Thornton UK, summarises the findings.
With the coming of 2022, we are seeing the potential full uplifting of most COVID-19 restriction rules, paving the way for the social housing sector to drive forward and deliver in a post-pandemic world.
In the report, we focus on the matters that are at the heart of forthcoming changes impacting the housing sector. This includes:
developments in climate change, as well as wider technical developments out for consultation impacting audit and corporate governance. The publication contains a number of resource links where further details may be accessed.
Housing associations are navigating new building safety regulations, the social housing white paper, and a significantly changed National Housing Federation Code of Governance. All of these have a clear focus on tenants’ needs and safety.
These developments are likely to have a significant impact on most associations and I expect that these will also be reflected in annual reports, particularly in the narrative reporting.
With increasing inflation, significantly higher cost bases, shortage of materials and the still unknown result of how the UK’s relationship with the EU will ultimately untangle for the sector, a significantly decisive balance must be struck by boards and management in making the right trade-offs.
Not only is there a greater market demand for new social housing supply, but also a calling on the sector to step up and work towards the longer-term commitment of achieving net zero carbon emission by 2050.
Following COP26, the impetus around climate change has heightened even further. The sector faces pressures on becoming enablers of sustainable development, leading on energy-efficient housing and carbon-reducing technologies as well as greener operating models. The focus will remain on these matters for many years to come as we now face the biggest challenge of our lifetime.
Housing associations have several challenges to navigate through this coming year. We hope that our sector developments publication, together with our housing model accounts, will give you some effective tools to tackle your financial reporting preparations for this year.
Get in touch with Debbie Watson for further support.