Credit crunch survey results

 Social housing credit crunch survey (PDF - 1.47mb)

Welcome to Baker Tilly's Registered Social Housing (RSL) Credit Crunch Survey. Over the past few months our social housing clients have increasingly been raising the issue of the tightening credit situation following the recent credit crunch and its significant ongoing consequences for their organisations.
 
In order to understand more fully what impact this is having on the RSL sector, we undertook a survey in August 2008 to establish the perceptions of senior RSL executives on the topic and how it is directly affecting their organisations.
 
We also wanted to see the steps Boards are taking to adopt their organisation to a rapidly changing and uncertain economic climate.

We were pleased with both the volume of replies and the senior level of executives who responded to our survey.
 
Over 80% of the respondents were in senior positions, with over 50% of the responses coming from finance directors, representing a range of RSLs covering Large Scale Voluntary Transfers (LSVTs) and Traditional Housing Associations. The majority of respondents came from mid size RSLs with 5-10,000 housing units, with a third having 10-20,000 units.
 
In the following pages we examine the perceptions/trends and take a view on some of the results we have found, as well as providing information for you to benchmark your views against your peers.
 
In summary, our survey will show that you are optimistic that the economy will recover in 2009, however you believe the housing sector is feeling the crunch and RSLs acknowledge this by the fall in sales and prices, and by not pursuing commercial development opportunities. With long term lending facilities in place most of you are avoiding the current difficulties in obtaining finance. Of significant concern is the fact that 75% of you think RSLs will encounter financial problems in the next 12 months, yet a third haven't looked at risk management controls or started any extensive cost cutting.
 
We believe it is too early as yet to assess whether the recent measures announced by the Government will significantly help alleviate the pressures besetting the social housing sector.

 Social housing credit crunch survey (PDF - 1.47mb)