As annual financial reporting season arrives, we can expect headlines about housing associations raking in ’huge surpluses’ to emerge.

These stories paint a picture of a sector that prioritises profits over people and the communities we serve. Not only does this argument miss the mark, but it also fails to explain what these reserves are for and why they are essential for residents.

Surpluses aren’t rainy day funds or indicators of hidden wealth. They are essential for the social housing sector’s financial model and our core purpose of serving people in housing need.