A new report by Community Housing Cymru (CHC) has outlined the contribution of Welsh housing associations to the economy.
The report shows that over £2bn was spent in 2018/19, with £1.3bn directly spent by associations – 85% of which being retained within Wales.
The results also show that for every £1 the Welsh government invests in housing associations, it receives £5.73 in return.
Other figures in the CHC report reveal that turnover for the year was £1,006m, an increase from £954m in 2018. Turnover is forecast to rise by 4% per annum to £1,224m by 2024.
The report also found that the housing sector played a big part in supporting 25,000 full-time employment jobs in the country – both directly and indirectly.
Other key findings from the CHC report include:
- Housing fixed assets, before depreciation, have continued to rise and now stand at £7.9bn, a 6% increase from 2018.
- Housing assets are predicted to rise by an average of 8% per annum to £11.5bn by 2024
- Housing associations in Wales own and manage nearly 164,821 homes, a net increase of 1,838 from the previous year
- £399m was invested in developing new homes in 2019, a rise from £325m in 2017/18 (90% of which are general needs properties and retirement accommodation)
- The average turnover per social housing property has increased from £5,250 in 2018 to £5,459 in 2019 representing a rise of 4%
- Capital and Reserves levels are now £1.17bn, up from £1.15bn in 2018
“A financially robust sector”
CHC says the results “demonstrate a financially robust sector with a clear commitment and capability to support the provision of affordable housing across Wales, significantly contribute to the Welsh economy, and help mitigate the impact of poverty on people’s lives”.
Steve Evans, CHC’s assistant director of Finance and ICT, said: “The public health crisis caused by the pandemic this year and the resulting economic challenges we face as a nation make it more important than ever that we maintain a strong financial base to invest in communities, homes, and people.
“The Global Accounts report demonstrates an ongoing commitment between housing associations and Welsh government to deliver on our ambition of a Wales where good housing is a basic right for all.
“We have the capability to make a difference and support the provision of quality, affordable housing across Wales, stimulate the Welsh economy, and help mitigate the impact of poverty on people’s lives.”