Peabody chair urges sector to look at JVs and investment funds to boost housebuilding

A number of major housing associations have scaled back their development plans in the face of the financial challenges facing the sector. 

Some landlords have turned to investment funds to help with their development programmes. Hyde partnered with M&G Investments in March last year with an aim to build around 2,000 shared ownership homes.

Hyde said this year that it expects to increase the number of homes it builds over the next few years and will require more institutional investment to do so.

Speaking on the same session James Prestwich, director of policy and external affairs at the Chartered Institute of Housing, said that housing associations have a “really important role” to play to “keep the housing market moving”.

However, he said with the challenges facing the sector, development is a discretionary spend.

Mr Prestwich said that housing associations must ensure their stock meets the Decent Homes Standard, stay focused on building safety, and meet net zero ambitions.

He said the sector “absolutely” has to do all of those so “the discretionary area of spend is development and that has implications for us as a sector but also for the country’s supply and emissions”.

The comments come after housing secretary Michael Gove last week re-committed to the Conservative Party’s 2019 manifesto aim to be delivering 300,000 homes a year by the mid-2020s.

However, in September, major housing associations warned that the government’s plans to introduce a tighter rent cap will hamper their development plans.

Last month, the Regulator of Social Housing warned that registered providers are facing “difficult decisions” to maintain their financial resilience.