In today’s housing landscape, the pressure to balance financial sustainability with the urgent need to retrofit and build new homes is more intense than ever. Amid these challenges, one principle continues to rise above the noise: collaboration.

Whether it’s forming strategic partnerships to deliver new developments, pooling resources for joint procurement, or aligning internal teams and legal advisors on complex due diligence projects, collaboration is no longer a buzzword; it’s a necessity.

From development to disposal: A joined-up approach

When a property is newly constructed, the journey from development to funding or disposal is rarely a linear process. Development teams hold the keys to critical documents, while treasury, legal, and finance teams must navigate the intricacies of property charging. The most efficient transactions occur when these teams work in tandem, guided by clear internal policies and procedures.

Housing associations that proactively prepare charging packs, even in the absence of immediate funding needs, are better positioned to respond to market shifts. The past two years have shown us how quickly circumstances can change. Having a pool of unencumbered properties with completed documentation offers not just flexibility but a strategic advantage.

Health-checks: Preparing for the unexpected

Yet, readiness alone isn’t enough. The valuation basis and the amount of capital that can be raised from charged properties are not guaranteed. That’s where a pre-charging review, or what we call a ‘health-check’, becomes invaluable.

By assessing unencumbered properties ahead of a live transaction, issues that may hinder chargeability or limit valuation potential can be identified and remedied. This foresight provides confidence when engaging with investors and treasury advisors on properties that you have ready to charge, and ensures that opportunities aren’t missed due to avoidable delays.

Revisiting the past to unlock future value

It’s not just new transactions that hold promise. Significant value may be locked in properties that are already charged. Older loan facilities, for instance, may restrict valuations to EUV-SH (Existing Use Value for Social Housing), even when properties could qualify for the higher MV-STT (Market Value Subject to Tenancy) basis.

This is particularly relevant for properties acquired from local authorities before deregulation. The shift brought by deregulation means that LSVT (Large-Scale Voluntary Transfer) properties may now be eligible for higher valuations, provided no restrictive covenants stand in the way.

A call to collaborate

The message is clear: collaboration isn’t just about working together, it’s about working smarter. By aligning internal teams, engaging legal advisors early, and proactively preparing for funding opportunities, housing associations can unlock hidden value and build resilience in an ever-changing environment.

If you would like to discuss further or need advice, then please contact me.