Featured Sector: Social Housing

Strong growth in social housing project starts and in sector output over the last year has been in the face of deep cuts in central government capital budget and the introduction of new funding regimes for social housing provision. The ONS recorded a 33% rise in the volume of sector output between the first quarters of 2013 and 2014. Furthermore Glenigan project starts data point to further output growth, at least in the near term, with the value of underlying project starts rising by 16% last year.

The Government has substantially cut its capital budget for new social housing provision and is looking to social housing providers to tap private sources to fund a greater proportion of new housing projects with the additional cost met through higher ‘affordable’ rents. 

The chart above illustrates the shift in funding support provided by the HCA through its various programmes. The support given to promote private sector housing has masked the overall decline in social & affordable housing provision. Excluding open market properties the number of units started in 2012-13 totalled 26,114; although up against the low level seen during the previous year, the total was still 32% down on 2009-10.