Report: Risks and Strategies for Developing Housing Associations

This report provides a comprehensive analysis of the risks faced by medium-sized developing housing associations. It begins with an introduction to the topic, touching upon the emotional factors influencing house price bubbles and their impact on the housing market. The report then delves into the specific risks faced by these associations, including financial constraints, lack of economies of scale, increased market competition, and operational challenges. It further explores remedies to mitigate these risks, such as government schemes, diversifying financing channels, and fostering specialized financial institutions. The report also examines the factors influencing the response to risk, like regeneration policies, self-build housing, and the impact of land reform. The report concludes with strategies for overcoming these risks, offering valuable insights for business development and risk management within the housing sector. The report uses various sources to support the arguments and provides a good overview of the issues faced by medium-sized housing associations.

Medium-sized developing
housing associations

Contents
INTRODUCTION...........................................................................................................................1
Emotions and house price bubbles..............................................................................................1
RISK FACING BY MEDIUM-SIZED...........................................................................................2
Remedies for tackle the risk issue...............................................................................................4
Factors that influence response to risk of medium size developing housing associations..........5
Strategies to overcome risk..........................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Small enterprise facing many issues and problems in different perspective. In this
consideration, several risks are also exists in developing housing associations. In recent time,
there are several elements exist on which proliferation of writing considered in discipline of
sociology, anthropology, psychology, human geography, etc. (Rostami, Sommerville and Lee,
2015). There are many researchers understand that multidimensional concept and little sustain
reflection. With the help of carry the present research paper, it can be examine that dominant and
recurring ideas also represented with relevant theory and empirical literature. Many authors are
consider notions and creating ideas at home. In the efforts, facilities are also implemented with
meaning and experience of the different themes.
Furthermore, it can be interpret that in the housing market, there are several roles has
been complements with traditional economic and behavioral studies. It is based on the house
price inflation so that it looking towards the social psychology and cultural studies that
considered right meaning (Fernandes and Artes, 2016). Housing market dynamics are usually
determines study by the economists that describe the process of buying and selling of the
property. These traditions are main strength. For example, investigations consist connection
between the house price inflation, housing migration, etc. Recently, there are different growing
interest also exist among the researcher with sociology, anthropology, etc.
Emotions and house price bubbles
Economic theory rarely concerned directly emotional issue. Volatility in housing and in
the financial market also conceptualised that affect and describe in the language speculative
bubbles. Importance of the emotions are also considered with particular optimism of future
prices (Kumar, Singh and Shankar, 2015). Relevance of the discourses of the confident in
specific market considered by the Case and Shiller. It is also determining the survey work in US
that argue and located because people seem to form their expectations on the basis of past price
rather than the knowledge of fundamental. This energy also encompasses expectations that
suggest price on the basis of economic theory. There is agreement among the housing
economists which underpin in the emotional energy. It is the form and animation that are rarely
opened in the scrutiny.
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RISK FACING BY MEDIUM-SIZED
In the medium sized, there are less complexity exist as compare to the large corporate and
project investment. Environmental and social issues are associated with the small and medium-
sized enterprise which significant and primarily related with the worker health and safety.
Investment in small and medium sized enterprises focus on the setting of the outlines that
defined by the annual sales (Unnikrishnan, Iqbal and Nimkar, 2015). These kinds of businesses
specifically requires funding in term of the business growth. Monetary cut off also classifying in
the enterprise that generally varies by the market, country, etc. Less complex than for large
corporate and project investment significantly related with the worker health and safety. These
environmental and social issues are closely monitored risks that varying on the basis of company
size and capacity as well. Financial institutions are also lends and invest in small and medium
sized enterprise which generally develop long term relationship (Laufs and Schwens, 2014). It
also exposes lenders and investors in environmental and social issues that are associated with the
enterprise. Due to the visibility of small and medium enterprise in community, reputation risk is
also factored. Following are certain risks exist in the medium-sized enterprise:
 Lack of proper resources such as finance, technology, skilled labour, market access, etc.
 Lack of the economies of scale and scope.
 Higher transaction costs that relative in the large businesses.
 Lack of proper network which contribute to the lack of information.
 Increasing market competition and concentrate from large multinational enterprises
caused by the globalisation and economic integration (Yeboah-Boateng and Essandoh,
2014).
 Inability to compete against larger business in the term of the research and development
expenditure and innovations. For example, products, process and organisation.
 Lack of proper entrepreneurial zeal, capacity and know-how.
Medium-sized enterprise facing above issues that could impact negatively on their
operations and functions. In this manner, they face more difficult situation in order to raise the
money when it will be compared to the larger businesses. Hence, they are unable to get finance
as the large business (Kunday and Şengüler, 2015). Further, lack of the proper information also
create problems with asymmetric information problems between suppliers. Therefore, it is
important to remedy this particular issue and problem in the market. Institutional information
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sharing schemes of the capital market that facilitate access in the wide range of important
information that are necessary for the company. It impacts negatively on the business outcomes
and results. In collateral based lending, provision also determines the simplest way for financial
institution that diminish risk premium in loan formulation (Wynarczyk, Watson and Keasey,
2016). Many governments also extended policy based finance to mitigate the constraints on SME
finance. Under this situation, efficient and lower credit risk evaluation tool. Further, low level of
the research and development also considered negative impact on the medium-sized sector. It is
important driver of the innovation and economic growth. Information technology also developed
rapidly in term of mobile phone, smartphone, etc. (Gunduz and Laitinen, 2017).
The compelling and little known story also considered original settlers. In this way,
themes of house and home are poor relations in the urban studies. It generating the less sustained
interest over time which changing the geography of urban hierarchy. Furthermore, it also
included world cities, place marketing, segregation in the city. David Morley is the professor of
communication who wrote about the home territories, media, mobility and identity (Ayob,
Ramlee and Rahman, 2015). In this consideration, there are different sets out considered and
investigate in different ways. Therefore, traditional ideas about the notion of home describe. At
the micro level of domestic household, it has been modified that technological development in
the field also communicate and transport. It also put in other way around at starting time of the
technological development. In the twentieth century, there are several contributions exist that
considered routine work with new communication (Kumar, Singh and Shankar, 2015). Separate
from the outside and inside the case, domestic household and nation state also concerned with
tracing connection.
Contribution to the housing field broadly agree that home is multidimensional concept.
Informed by the proposition should be conflated and it includes social, psychological and
emotional elements. Home is the thought of the subjective experienced that shown that people
defined as the homeless may not feel actually homeless. Present research based on the
ethnographic research with a several numbers of people group. It has been argued that
problematic experience residing in the public places together (Unnikrishnan, Iqbal and Nimkar,
2015). With the biographies of feeling, disconnected from the society which underpins ideas of
home. In addition to this, there are significant changes in the social housing considered in recent
years. For example, reduction in grants, changes in the regulations, new forms of financing, etc.
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These led to divergence in the business models that are being followed by registered providers.
Governance also reflect specific needs in the each business. Principles of co-regulations are with
homes and communication agency also considered that increases need for registered providers. It
also helps to take greater responsibility in the governance structure. Prescriptive requirements
and specific guidance also reduced (Rostami, Sommerville and Lee, 2015). Results are also
makes certain changes to focus on the ratings. Review is also based on the information that are
given by the accounts. Internal and external audit activities are also performed which place detail
information and reflect on the financial statement.
Risks are also based on the approach to regulations which amplifies expectations around
the risk management. In this way, firmly committed to the co-regulatory approach which is
responsible for managing the own businesses. It means that all people need to fully understand
risks that are faced by the organisation (Kumar, Singh and Shankar, 2015).
Remedies for tackle the risk issue
Code of governance also provide board and committees with the systematic framework.
These based on the principles that help and create better organizational performances. Code also
set standards that are considered good practices and adopt the work to implement it in the best
way. Complexity also reduced in systematic manner that are create risks in the business. In order
to make solution for the present problem, it is important to describe scheme by the government.
Diversifying the channels of financing help to implement credit guarantee scheme by the
government. In addition to this, it is also beneficial to home-town investment trust fund for
finance risky. Development of the specialized private banks also good example to protect the
deposit insurance and capital adequacy requirements.
It also creates several advantages that contribute in the financial market stability.
Individual household and firms direct access to the information about the borrowing firms. Fund
is also project driven that decide to invest and getting about the borrowers. It also increasing
employment opportunities which retires from the financial institution (Yeboah-Boateng and
Essandoh, 2014). With the help of the effective strategy, it has been seen that medium-sized
enterprise will get several benefits. Therefore, it will assist to attain desired results in systematic
manner.
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Factors that influence response to risk of medium size developing housing associations
Regeneration polices serve as gentrification strategy but urban renewal has forced to the
government to change policies. In the year 1980 estate fell into disrepair after that many old
tenants have moved out and new tenants have taken their place. This has increased crime,
poverty in the nation (Lees,2014) . This has created risk for the housing association because rate
of estates get increased. But post political planning of the government has manipulated
regeneration program. This misrepresentation has closed many choices for the public. New urban
renewal was the final death situation for monolithic council estate in the nation. In the year 1997
Tony Blair has launched new labour's version where he has announced welfare to work program.
But due to this manipulation tenant were not satisfied. This has created risk on the housing
association (Clapham, 2005).
Self build housing is considered as relevant topic in the field of housing policy and
research about housing risk. At the time of economic difficulty and other issues government was
taking more interest in housing building. Self provided or self building is enhancing gap of
affordability. Housing crises of United Kingdom has created economic problem in the nation in
the year 1970 (Benson and Hamiduddin, 2017).
After that housing associations have to face huge risk became people were not taking interest in
investing money in house building. After that housing market was dominated by the property
ownership. New housing procurement contributes small portion in entire housing market. That is
why supply of housing was low in demand due to which housing associations have to face huge
economy loss. Self- build has make it more affordable and gap of affordability has been
decreased. This has brought competition in the market. In the self- build discussion community
led development has been included by the authorities. Self build is the international context that
helps in responding to the risk of housing associations (Moore and McKee, 2012).
It is the informal settlement that provides low cost solutions to the states and provide
shelter as well (UK housing associations use lure of luxury in social mission, 2017). By land
reform has determined that self build is the disadvantage because it introduces bureaucracy.
United Kingdom recently has experienced growth in the house building industry. Self build is
considered as one of the best example of house market restructuring. For example Germany is
the nation where 60% homes are constructed by local companies, same as in Netherlands self
build contributes 20% in overall housing production. In the United Kingdom approach of self
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build plays significant role in development of housing associations (Kathleen Scanlon, Jens
Lunde and Christine Whitehead, 2010).
Empowering local communities is considered as best approach to respond to the risk of
housing associations. Affordable housing supports in giving power to the local communities.
Community land trusts (CLT) are providing affordable lands to the local communities. That
empowers them and they take more interest in investing money in the housing. Government aims
to provide home facility to the local people. CLT has therefore targets to offer 240000 more
homes to the local people of England till the end of 2016. It is planning to invest 8.4 bn till the
end of next three year to meet the housing needs of the communities (UK housing associations
use lure of luxury in social mission, 2017). CLT is continuously working for delivering
affordable housing facilities to the local people.
The housing regeneration act 2008 has supported the local people to get financial
assistance by the authorities. CLT has worked to raise funding facilities for the local
communities so hat confidence of the local person can get increased and individual can afford
houses easily. Community land trust acts as mechanism to democratic ownership of land. Land is
taken out from the market and it is used in productive manner so that impact of land appreciation
can get minimized (Clapham, 2005). It supports in long term growth of housing associations and
sustainable local development. CLT reinterpret land as community legacy so that value of the
properly can get increased.
Development in the new residential mortgage lending facilities are the response that
might influence the risk and can minimize its impact. It can be defined as deduction of gross
lending from repayment and redemption. Policy makers are required to make effective polices
for the development of medium size housing association (Adams, Croudace and Tiesdell, 2012).
This can support in improving their condition. By this way they will be able to response to the
risk effectively. Effective planning policies play significant role in the development of the
industry, there are many private firms those which are continuously working for the development
of this sector. Policy makers are required to understand structure and risk associated with this
industry and accordingly they have make effective polices so that these risk can be responded
significantly. Poor understanding create big difficulty and medium sized firms fail to work
effectively in the housing market. Changes in fiscal policies can be helpful in responding to
these risk related with the housing development in the nation (Clapham, 2005). Internal auditing
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methods is the best approach to response to the housing association's risk. Evaluation and
auditing support in managing risk effectively. Risk management strategies, risk identification are
supportive measure that can help in responding to risk significantly. Risk identification helps in
identifying the potential risk that are creating difficulty in the development of housing industry
and show these risk can be resolved by taking appropriate actions. Reduction in interest rate is
direct solution that can help in reducing risk of the housing associations (Kathleen Scanlon, Jens
Lunde and Christine Whitehead, 2010). It explains that it gives benefit to the borrower and
enhance their interest as well. Low interest rates reflects low mortgage repayments thus, buyers
can easily afford repayment schedule or amount thus, buying houses will not be costly for them
(UK housing associations use lure of luxury in social mission, 2017). If policy makers conduct
the market research effectively then it can support in identifying the risk and making strategies in
such manner that can help in resolving these issues effectively. In the absence of market research
it can not be possible thus, it is very important to look at the market situation and make polices
accordingly.
Strategies to overcome risk
There are different types of risk that are associated with Housing associations. For each
of the risk that is faced, it is important to make sure that appropriate strategies are applied so that
they are overcome the issues and effective services are delivered. With this respect, below given
are the strategies that can be applied for the risk that are generally faced:
Involvement in planning process: In accordance with the risk for production, it is
important that appropriate steps are taken so that they are able to develop an appropriate plan
with the help of which the rate5 of issues that are faced in production can be solved (Irwin and
Scott, 2010). In order to provide services to customers, there are many steps included in which
for establishing building, there are materials involved. All the materials that are included consist
of cost involved and time is consumed so that all the activities that are included are completed
within speculated time. However, it is important for the business to have appropriate planning to
be made so that the risk which is involved in production can be eliminated. Apart from this there
are employees required so that all the activities that are involved can be performed. When
division of work is not done properly, then it affects the business to complete their set target. All
these type of risk can be eliminated when the planning process is effectively done.
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Effective communication: With time, there are different types of issues faced in building
or housings. This is because the materials that are used in the process get damaged with time. In
such condition it is important to make sure that maintenance is done (Gao, Sung and Zhang,
2013). With an aim to overcome maintenance risk, it requires the employers to have proper
interaction with clients so that they provide proper information in case those are any problems
faced. Other than this, cooperative maintenance programs should be created. Apart from this,
incentive programs should be introduced so that all the workers related with housing can get
motivated and put on their full efforts to overcome the risk involved. In addition to this, all the
workers involved in the program of housing should be proper knowledge regarding the roles and
responsibilities that has to be played by them. When the rate of understanding is high, then it
becomes favourable enough to eliminate the risk that is involved. However, housing associates
should regularly monitor their workers so that the areas in which development is required are
identified and accordingly training is provided so that they are able to perform their set of roles
in effective manner.
Assessment of loan application: There are situations in which clients do pay all the
amount and this it becomes debtors. With this respect, in order to overcome the risk of income, it
requires to check out the involvement people and their capability to pay for the amount that has
cost them (Blaikie, Cannon and Wisner, 2014). Risk of the business can be eliminated when the
plan that is made for clients based on the total amount that they can spend. Further, it is also
requires the housing associates to focus on the business in such a way that people are able to
provide their amount on time and the project can be completed within speculated time period.
Developing strong network: There are different types of other companies that deliver
similar type of services. For the materials that are delivered by them will differ in terms of
quality, cost, etc. (Hernández-Guerrero, Vieyra-Medrano and Mendoza, 2012). It is important to
make sure that risk that is caused due to lack of network is eliminated in appropriate manner.
Main reason for this risk is caused due to lack of information. There are many sources that are
available and these help to list out the people who can support providing all the set of requires
that are needed. Further, there are conditions that are faced in which due to lack of interaction
with the client, the plan that were expected is not developed. Due to these type of problems, it
becomes difficult for the housing associates to satisfy clients in effective manner. In order to
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overcome them, it requires the employers to have strong interaction with clients so that the
requirement can be identified and fulfilled.
Promotional strategies: With time, there are different other companies that have come up
and these have raised competition (Hernández-Guerrero, Vieyra-Medrano and Mendoza, 2012).
Due to this, the choices for clients have raised. Main preference of a person is to get high quality
with low price. When a housing associate is able to cover these aspects, then it becomes
favourable enough to develop strong customer base. Other than this, social media needs to be
used as it an effective platform for promoting the type of services that are delivered.
Continuous innovation: Taste and preference of people changes on frequent basis, it
requires to make sure that contributing of research and developed is do highly so that they can
come up something that can raise customers. In order to reduce the risk to competition it requires
to proper support taken in which innovation is done on frequent basis. This way, it becomes
favourable enough to satisfy clients in appropriate manner.
Make a plan :- In this context every new business is focus to make a plan for new activity
is to be introduce in market. Planning is help to improve performance of Medium-sized
enterprise and growth rate in market (Blaikie, Cannon and Wisner, 2014). Planning is based on
the company need and future opportunities on that plan. It is one of most important part is based
on each risk based on likelihood and impact on business. To set a scale at the time of planning to
manage risk in working environment. In this stage focus on new technology and skilled labour is
most important to remove risk and increase the profit rate in market. With the help of proper
planning Medium-sized enterprise is use new technology and assistance to indefinite quantity the
number of customer.
Decide how to handle each risk :- In this stage is to be focus on how to handle each risk
in business and how to improve it. To be focus on four best strategy's are avoided it, reduce it,
transfer it and accept it. All such kind of four factors is most important to manage risk and
increase the level of execution in working environment (Gao, Sung and Zhang, 2013). To be
focus on each and every strategies is most important and solve problem of Medium-sized
enterprise. To manage risk is one of the most important part and hazard can affect costly fresh
scheme or cumbrous processes and power. Further, it covered manage risk and handle risk in
Medium-sized enterprise.
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Monitor :- To monitor each and every activity in risk management and improve the
growth rate in market. It is one of the most important part of Medium-sized enterprise. On the
other hand, monitor like finance, marketing activity is most important and increase the growth
rate in market. Strategies are set for financial activity and manage finance to improve carrying
into action. At the time to use new technology is monitor each and every activity to manage
growth rate in market (Irwin and Scott, 2010). At the end organisation is to be monitor each and
every activity like cost and economic factor is most important in Medium-sized enterprise. In
this way, cost is to be decide by upper level organisation and improve the growth rate in market.
In Medium-sized enterprise to manage cost is most important as per the need of the customer in
market. In this way use monitor each and every factor to manage cost in internal working
environment
CONCLUSION
In accordance with the findings, it can be stated that in all type of business there are risk
involved. It is the responsibility of employers to develop step by step plan in which they are able
to eliminate the risk and proper strategies are applied so that the rate of risk can be reduced.
Further, in all the activities, there are cost and time involved. It is the responsibility of
management to develop plan in which the total time and cost that are included are identified and
steps are taken accordingly. Employees are the one who are involved in the undertaking all the
activities when they fail to perform their role, then there are negative impact. They should be
trained so that the performance level can be improved.
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