Local Space, a London-based housing association that provides high-quality homes for families who have experienced homelessness, has retained its AA- long-term issuer credit rating from S&P Global Ratings.
The rating remains the highest currently awarded by S&P to a registered provider of social housing, reflecting Local Space’s strong financial position, robust governance and unique operating model.
Alongside affirming the AA- rating, S&P revised Local Space’s outlook from stable to negative. The revision reflects the organisation’s ongoing transition to a new operating model, including increasing investment in existing homes.
These investments are designed to strengthen Local Space’s long-term operational capacity and service delivery, ensuring the organisation is well positioned to support future growth while continuing to improve outcomes for residents.
The S&P report noted that Local Space continues to deliver financial performance that is stronger than many sector peers, supported by its established partnerships with local authorities and its specialist housing model.
In its assessment, S&P recognised Local Space’s strong governance arrangements, management capability and financial resilience, while noting that the organisation maintains flexibility to manage future investment and growth plans.
S&P highlighted Local Space’s strong market position, noting continued demand for temporary accommodation and key worker housing across its areas of operation. The ratings agency also recognised the organisation’s approach of acquiring and refurbishing homes rather than developing them, providing flexibility and reducing exposure to development risk.
Josie Parsons, Chief Executive of Local Space, said: “Retaining our AA- credit rating is a significant achievement and reflects the strength of our organisation, our people and our partnerships.
“S&P’s assessment recognises the strong governance, financial resilience and operational foundations we have built over many years. While the revised outlook reflects the challenges associated with implementing our new operating model, we are confident that these changes will strengthen our services, improve our homes and deliver better outcomes for the families we support.
“Our focus remains on providing high-quality homes for people who have experienced homelessness while continuing to invest in our existing properties and services. We welcome S&P’s recognition of our strong financial position and our ability to adapt and respond to future challenges.”
Local Space owns and manages around 3,200 homes across London and Essex, working with 19 local authorities to provide temporary accommodation and homes for key workers. More than 80 per cent of its rental income is supported through local authority partnerships, helping to provide stable and predictable income streams.