Housing associations urged to consider investing in commercial property | 29 August 2012
Housing associations should start investing in commercial property to improve funds, it has been claimed.
Bruce Moore, who is chief executive of retirement homes provider Hanover Housing, has claimed that housing associations can no longer rely on government grants to build new houses and finance the maintenance of their existing homes
In an guest article for guardian.co.uk, he predicted that building and renting out commercial property would soon become the norm amongst all British housing associations.
“This strategy though is not without risks,” he admitted.
“Even with a strong track record of innovation and development combined with a secure financial base and balance sheet this will still require a leap of faith. To succeed we will need to be even more creative, brave and agile than we have been before.”
Hanover is one of a few housing associations to have already ventured into the commercial property market. It would appear that many more may soon need to consider alternative means of funding.
According to 24dash.com, many housing associations are making “larger than necessary” cuts to their ‘Supporting People’ programs, which aim to help support the elderly, homeless and mentally ill people.
The report also claimed that many associations were “just about keeping the show on the road” financially.
Written by Joe Elvin on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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