Once again this latest survey presents a mixed picture and arguably a feeling that the social housing sector as a whole is still not doing all it could to ensure it weathers what has now become a very long and difficult to navigate economic storm.

On one hand housing associations are indicating that they have been affected in a profound way by the credit crunch and the resulting recession. 

Since the beginning of 2009, perceptions about the economy have worsened. A larger number are having problems with lenders and many accept that rental income and HCA / HID Funding will fall over the next 12 months. There’s also a growing sense of realism that the sector will be affected by some significant funding cuts from Government throughout the next election cycle.

Many associations are battening down the hatches, driving through efficiency savings and adopting survival strategies - but the question is whether they are doing enough.

If we compare November 2009 to March 2009, the number of housing associations looking to make cuts has fallen and there are still less than a third looking to make staff redundancies.

Set within the context of public and private sector pay freezes and salary cuts, it is very surprising that the majority of organisations are still considering increasing employee salaries.

Many housing associations may argue that they are profitable and have significant cash reserves which will enable them to absorb a reduction in income. Organisations can’t rely on doing this indefinitely however – and using existing reserves is very likely to have an impact on tenant services.

Last time we highlighted the risk of complacency.  With the economic recovery looking slow and the only certainty being that they will face a fall in income over the next few years, there’s never been a better time for organisations to look at their positions and ensure they are built to withstand what will be another challenging 12 months ahead.