26 September 2008
Outside experts are to join senior Housing Corporation staff in reviewing how registered social landlords are coping with the credit crisis.
With the Tenant Services Authority due to take over the corporation's regulatory role in early December, a five-strong panel will study financial returns and forecasts published by RSLs to assess each landlord's strength and viability.
The corporation is concerned that housing association budgets will be hit by the drop in sales of shared ownership properties and by the increased cost of borrowing.
'We expect there will be some associations that are exposed to the downturn in the market,' said Clare Miller, the corporation's director of regulation. 'They could have some difficult choices to make.'
The panel, which meets for the first time on October 2, will consist of three regulatory staff and external consultants from organisations such as Grant Thornton and KPMG, who will attend meetings on a rotating basis.