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London G15 Housing Associations: 2022 Financial Snapshot

The G15 is the group of London's largest housing associations, presenting a collective voice in the face of common economic, financial and environmental challenges. It comprises twelve Social and Affordable Housing Providers (SAHPs) which together own and manage almost 675,000 social housing units or close to 25% of England's social housing stock. In 2022, the G15 SAHPs accounted for almost 30% of the turnover of the English SAHP sector and also of investment in new social housing supply. While the G15 SAHPs face common challenges and have seen a mostly generalized deterioration in their financial performance over the last years, especially for top performers, their financial standings still remain diverse.

-- The majority of the G15 SAHPs have seen their operating performance deteriorate in the 2022 financial year.
-- Some G15 SAHPs have seen their debt metrics worsen substantially since 2019, partly due to a declining operating performance, but also because of their large debt-funded investment programs.
-- Debt levels are now standing at very high levels for many G15 members, which makes close monitoring of financial leverage a key priority going forward.

“Following large debt-funded investment programs, some G15 SAHPs have seen their debt metrics deteriorate substantially since 2019 and the majority of the G15 SAHPs now post a weak net debt to EBITDA ratio,” said Mehdi Fadli, Senior Vice President in the Global Sovereign Ratings Group. “Monitoring financial leverage is therefore a key priority for the G15 members to avoid a sharp deterioration of their credit quality.”