Clarion Housing Group’s scale and financial strength delivers a number of benefits:
- Resilience to risk - we are able to manage adverse trading conditions and absorb market shocks.
- Efficiency - we can realise economies of scale, building on our successful track record.
- Influence - our scale affords us the ability to influence government policy for the benefit of our customers, our business and the sector as a whole.
Our business plan has strong growth ambitions, which will be managed through a prudent framework for planning and decision making, provided through a set of agreed “Financial Golden Rules”. These are designed to recognise business risks and govern our operating margins, net debt/turnover, sales as a percentage of turnover and social housing interest cover.
The business plan is also regularly stress-tested, both on single variant scenarios as well as more intense ‘multi-variant’ scenarios.
Clarion Housing Group seeks to maintain diversification in its funding sources with the majority coming from bilateral loans from banks and building societies and the remainder from the capital markets. The Group is committed to maintaining a strong investment grade rating. It is currently rated by Moody’s as A3 and by Standard & Poor’s as A. Copies of the rating opinions are available on request.
Maintaining our strong financial position is one of our core objectives, without this we would not be able to achieve our ambitions of:
- Building 50,000 new homes over ten years.
- Supporting 4,000 people into work annually.
- Helping 15,000 young people to get a better start in life.
Sustainable Housing Finance Framework
Through our Sustainable Housing Finance Framework, we’re the UK’s first housing association to adopt the Certified Sustainable Housing Label. This incorporates 30 social and green indicators and mirrors the principles developed by the UN that have become the benchmark for impact investing.
The UN sustainable development goals include making cities inclusive, safe and resilient; reducing inequality; providing affordable, clean energy; and promoting sustained, inclusive economic growth and decent work for everyone.
“Creating truly sustainable communities where people can thrive is at the core of our mission. By following these internationally recognised standards we will be better informed about the impacts our activities have on the communities we serve,” says Rob Lane, group commercial services director.