A secure and reliable foundation is what we all need for 2024

December provides an opportunity to reflect on the last 12 months and look to the year ahead. To some, the focus of my reflections this year may come as a surprise, writes CIH chief executive Gavin Smart.

Normally, my end-of-year musings focus on the housing sector, deliberating the progress made, the challenges, the achievements and ultimately how we can do more to ensure everyone has safe and secure homes to build happy and healthy lives.

This year, I find myself reflecting on a slightly different topic: finance.  

The economic crisis has been well documented, with its impact casting a long shadow in an increasingly challenging operating environment for social housing. 

As a not-for-profit charity, any surplus we make is reinvested into our charitable purposes. For us, as the professional body for housing purpose trumps everything, but it goes without saying that the money does matter too. No money can quickly lead to no purpose. For avid readers of the housing trade press, with long memories, you will be aware that CIH had several years, in the last decade or so of financial results best described as challenging. 

We have been quietly and consistently resolving this. Steadily eradicating our pension deficit, which had a hugely detrimental impact on our finances. This year, for the fourth consecutive year, CIH reported an operating surplus. 

It was £3.6 million this year. This was something of an exceptional year given that we were also able to eliminate our pension deficit entirely (it was £3.3m at the last year end). But even without that boost we would have reported a modest, but healthy surplus. 

This financial turnaround has enabled our unrestricted funds to grow by almost £2 million to £5.5 million as at March 2023. Our borrowing facility is no longer required, and our investments have been maintained. We have achieved the reserves policy requirement of holding nine months of expenditure to protect ourselves as a charity. The impact of our financial turnaround has resulted in a much financially stronger CIH. 

Crucially, we are preparing to ensure we can play our role in supporting the sector as it embraces the professionalisation agenda

Why am I telling you all of this? I can’t help but be proud of CIH’s financial progress. I know only too well the dedicated hard work everyone across the organisation puts in to deliver our services as cost effectively as possible to provide an excellent member offering that makes us the professional body that you, our members, deserve.

Pride aside, I wanted to highlight our financial transparency and reassure our members and stakeholders that previous headlines of financial woes are a thing of the past. Our commercial stability and financial strength mean we are now growing and laying the foundations to enhance the tools and resources we provide and that our members need as the sector evolves.

Crucially, we are preparing to ensure we can play our role in supporting the sector as it embraces the professionalisation agenda and responds to the mandatory qualifications requirements. 

With a general election looming, CIH will continue to provide a key link between the sector and government to ensure the legislation around housing and professionalism is meaningful, accessible, and effective. Our housing manifesto, Homes at the heart – a strategy for housing, calls for the changes we urgently need, highlighting the challenges the sector faces in relation to time, resourcing and cost of living.  

2024 is set to be a year of change. We look forward to embracing the change and working with our members to create a sustainable housing system which supports a vibrant economy and society.