Julian Ashby, in an exclusive column for Inside Housing, said the sector had dealt with the 1% social housing rent cut and other policy changes “while remaining an attractive home for investors”.
He says more providers will be downgraded to the ‘V2’ rating for financial viability. ‘V2’, the second highest possible grading, means landlords are still compliant but need to manage exposures.
A total of 42 out of the 258 current regulatory judgements are ‘V2’, up from 37 in May.
Mr Ashby said providers are ‘planning significant reductions in managmenet costs’ to maintain their margins so they can continue to build homes and while this is commendable it is important that they are able to see these plans delivered while maintaining the quality of their services and ensuring their stock is kept in good condition.