Housing associations traditionally don’t rely on sales as much as rental income. That said, their daily business is unavoidably affected by the economy.

Leaving the EU would mean a drop in the value of the pound, and interest rates will rise. This will make borrowing more expensive for housing associations. The knock on effects for tenants come in the form of inflation, they will have to pay a higher percentage of their income on basics like food.

However, on the plus side, housing associations tend to work in the mindset that any fall in the market will ultimately lead to more opportunities for affordable and market-rent housing activities. While this is a tempting prospect, the long term effects of a leave vote need to be considered.

The European Investment Bank (EIB) just increased funding to the UK affordable housing sector by £1.5bn. This easily accessible source of funds is threatened by Brexit.
44% of rough sleepers currently in London come from Europe and 13% of clients using day centres are from the European Economic Area. If the UK proceeds to exit the EU, then demand in these areas could be lost.

However, according to figures from the Department for Communities and Local Government, those from other EU member states made up only 3.7% of new lettings last year.
Additionally, considering work skills, where housing relies on European labour in the construction, repairs and maintenance sector, as housing associations do in vital care and support activities.

If housing associations are to agree that the happiness of residents is the most important thing, then it may be best to stay in and solve the housing crisis through less radical measures.

Related News

Brexit worries cause dip in construction

Staying in the EU would hit the poor the hardest says Iain Duncan Smith

UK homeowners will be hit hard by the Brexit says Osborne