Social Housing 2019 outlook

Video transcript

Social Housing 2019 outlook

2018 saw a huge amount of growth for the social housing sector.

Three main areas that we helped clients in 2018:

One, the provision of direct funding from Barclays itself. We’ve committed to over a billion pounds of new money, to that client base.

Two, we facilitated or arranged around two and a half billion of debt capital markets issuance, giving them much needed financial capacity, continue with their plans to build more homes and deliver on the supply side.

And thirdly, we’ve supported all of the main mergers that have taken place in the sector. Really interesting and important transactions because they build scale, financial resilience and financial capacity.


For this year, 2019, I think there’s a key challenge, and that is the beginning of a slowdown of the housing market, and how our clients, er, react and adapt to that. And I think there are, are two main challenges around that:

One, er the obvious sort of business risks and financial risks of managing through a period of uncertainty, particularly where you’ve got a lot of development.

The second consequence of a cooling housing market is more subtle for me, and this concerns the cross-subsidy model that a number of our clients work on. And, and that’s to say they’re building homes for sale in the open market, and with the profits of those, they’re then investing that into affordable housing, and that model works very well in a cycle where house prices are stable or increasing.


So, for 2019, you will see us broadening the debate with clients around some key strategic things. One, digitisation. How our clients move money around. How they procure, how they pay, business to business.

Secondly, I’m very interested in our shared ownership mortgage.

By enabling people buying shared ownership properties have access to a shared ownership mortgage.

And thirdly, I would say, we’re very interested in developing the debate with clients around off balance sheet funding. An example of that will be our, our strategic tie up with the Homes England where we’ve announced a large housing development fund that we fully expect to utilise this year.

Looking Forward

It’s been a real pleasure and privilege, helping our clients last year with all the things that we’ve achieved jointly.

My wish is that we can build on that, er, and continue providing new ideas, fresh solutions for, for this very, very important client base. 

End transcript

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