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SCOTLAND’S HOUSING ASSOCIATIONS FINANCIALLY HEALTHY

The Scottish housing association sector is financially healthy, with turnover approaching £1 billion, supported by £2.9 billion of committed private finance, according to a new publication issued today by the Scottish Housing Regulator.

The 2006/07 Financial Digest reveals that the housing association sector in Scotland saw turnover rise by around 9 per cent to £931 million.

This represents faster growth by the sector than in the previous year.

Turnover is up 8.7 per cent, housing properties up 9.7 per cent to £7.6 billion, and the sector recorded a net surplus of £68 million.

The Financial Digest provides a financial overview of the Scottish housing association sector based on annual accounts, private finance returns and five year projections.

Other highlights of 2006/07 include:

• Operating costs totalled £776 million, or 83% of turnover

• Of this total, salary costs were £283 million and remain the single largest item of operating expenditure

• The reported gross surplus was £113 million, or £437 per unit

• Profits from the sale of fixed assets continue to grow and at £29 million reached their highest recorded level to date

• Cash balances were healthy at nearly £300 million

• A total of £2.9 billion of private finance facilities have now been made available to the sector, and with £1.7 billion already drawn there is a further £1.2 billion available to support future activities

• Looking ahead, the sector projects a surplus in each of the next five years, totalling a cumulative £141 million

The Scottish Housing Regulator chief executive, Karen Watt, said:

“The housing association sector overall is in good financial health and well placed to develop more new houses. But individual organisations need to keep a close eye on rising management costs, and make sure their forward business plans are underpinned by realistic assumptions and sound treasury management.”

NOTES TO NEWS EDITORS

1. The Scottish Housing Regulator was established as an executive agency of the Scottish Government on 1 April 2008. It takes over the regulatory role previously carried out by Communities Scotland.

2. The Financial Digest is an annual publication. Copies of the full report are available for download from our website, which can be found at www.scottishhousingregulator.gov.uk