02 May 2003
Registered social landlords are generating increasing funds from activities other than social housing.
New figures show that income from non-core activities rose by 22% in 2001/02 from £662m to £807m. While this represents only 12% of RSLs' gross turnover – worth £6.57bn – it demonstrates the growing contribution these other activities are making to the prosperity of housing associations.
In the past five years, RSLs have diversified to offer student and key worker accommodation as well as community facilities, such as health centres and libraries. But a recent survey by insurer Zurich Municipal found that one-third of landlords still have no intention of moving into other areas.
Janine Relph, policy officer at the National Housing Federation, said most housing associations were keen to be seen as more than social landlords.
'They have a commitment to neighbourhoods. It shows their initiative and innovation,' she said.
The global accounts for RSLs, published on April 23 by the NHF and the Housing Corporation, show that housing associations own assets worth £54.6bn – up £3.7bn on 2000/01.
Rental income rose by 11% to £5.5bn. This was due to rent increases and a rise in tenant numbers following stock transfers from local authorities.
RSLs' surplus after tax rose in 2001/02 from £125m to £257m.
PFmay2003
