The changing landscape of affordable homes
With a myriad of change from Government policy, economic trends and Brexit, the traditional model of housing is being challenged more than ever. Demand for affordable housing is considerably higher than the rate at which it can be created. The housing market providers are having to rethink, reshape and decide how they are going to play a part in this fluctuating landscape.
This changing dynamic has seen some forward thinking, commercial and ambitious housing associations make a move into the private sector. This diversification isn’t easy as the housing associations are being challenged to operate within the rigour of this competitive business environment. In order to adapt, Housing Associations need the right skills, expertise and partnerships.
As a result, many of these providers are, in effect creating their own brands, building houses with a purpose for commercial rent and sale with any profit being filtered back into the ‘affordable’ side of the business. This model is interesting as the housing associations create profit to reinvest in what is at the core of their business, creating affordable homes, communities and places for people to belong. This diversification would make sound commercial sense as long as the housing association is agile enough for this new way of working.
Lane End Group are proud to be working alongside some of these innovative housing associations as they make this move into this sector. Having worked with these providers for the last seven years it is extremely positive to see this change in the sector. We’re excited about what this future pipeline looks like.
It is of course not without scrutiny from others within the sector. If they are to succeed, the housing associations need to maintain their commercial focus, network and balanced strategy over the next four to five years. Whatever changes take place, it is without doubt an exciting time for the industry and those involved.
Partnerships are vital within the Registered Provider sector to be able to deliver the required numbers of homes across the North West.
This will be a year of change for the affordable housing market with many housing associations diversifying into outright sale to reinforce their managed stock.