17 January 2003
Although financial institutions lend social landlords more than £2bn per year – mainly to fund stock transfers – the Council of Mortgage Lenders is angry it was not given a bigger role in framing the government's forthcoming Communities Plan.
Peter Williams, the CML's deputy director general, said the council was often invited to talks at the Office of the Deputy Prime Minister but did not feel that its ideas were given sufficient credence: 'The public sector has endless discussions about problems and then turns to the private sector to fund them,' he said. 'There is an awful lot of skill in the financial sector but the government never looks to the industry to structure the questions.'
Among issues that had not been properly addressed, he said, were whether arm's length management organisations (Almos) should be allowed to borrow without going through their local authority, along with alternative ways of funding the starter home initiative for key workers.
Williams' comments came as figures showed banks and building societies are likely to lend less than expected to the sector next year because the transfer programme has almost ground to a halt while councils await the Communities Plan. Early indications suggest that as few as 79,000 homes could be transferred in England in 2003/04, compared with 174,000 this year.
Local authorities that were considering transfers are waiting to find out the terms under which they will be able to borrow money without switching their stock to a housing association. The plan, due later this month, is also likely to reveal more about the future of Almos.
PFjan2003
