Implications Operationally for Housing Associations

Concerns £19 million reduction in income by 2020 Expect arrears to rise (2% Dec 15) Can we continue to build? Impact of starter homes What tenure? Fixed Term or not Huge uncertainty on: Welfare Reform – LHA rates impact PTS – voluntary or ? RTB2 – Voluntary or ? PTS and RTB2 receding as issues?, so are main issues rent reduction/welfare reform and lack of grant? LHA is potentially biggest problem now.

What we are doing Defining a different offer to residents Tough on debt Affordability checks for all new tenants Building 100 homes a year Reviewing tenures Channel Shift Turnover of stock directly linked to new home starts (Saville data) so less build/less turnover/no vacancies for homeless and register

What are the issues for partner LAs Not housing those who cant afford rent Working tenants only? Increase in evictions No new affordable/social rented homes? No supported housing provided Reduction in stock via RTB and not replaced in same LA Reduced service offer – Statutory only If don’t sort out the LHA rate issue. Needs data shows big demand one beds – if under 35s we wont build Build issues are long term decisions trying to meet short term (or not) pressures