Total rental income also increased more than 10% during the past year, to reach £5.5bn.
The news will add weight to calls from the finance sector for housing associations to consider diversification as a means of shoring up their role as social housing providers.
A survey by insurance company Zurich Municipal published last month (HT 28 March, page 15) showed that, despite doubts about diversification, most housing associations were well-placed to manage the risks involved. It also revealed that almost 80% had worked up risk management strategies.
Mark Lupton, policy officer at the Chartered Institute of Housing, said: "Housing associations are looking at opportunities in non-social housing areas, having taken more time to assess the risk.
"It is good for the sector that housing associations are developing in this direction and that the income can be ploughed back into social housing."
The Global Accounts, an aggregate balance sheet and income and expenditure balance sheet for 1857 housing associations, showed that registered social landlords were in good financial health, according to most housing professionals.
The annual figures are intended to give a snapshot of the sector's financial performance and provide investors with an overall impression of the sector's financial health.
Along with an increase in rental income, the value of registered social landlords' housing assets rose £3.7bn to hit £54.6bn.
Housing associations' liquid position – their current assets less their current liabilities – also improved, with net current assets having increased £300m to £1.5bn over the last year.
However, an increase of £137m in management and maintenance costs could cause concern in the sector, although a full breakdown of how the money has been spent will have to wait until an analysis of the figures is published next month by the Housing Corporation.
Source
Housing Today
No comments yet