30 September 2005
Housing associations have the potential to raise significantly more private finance, say lenders, even though total borrowing by the sector is already poised to exceed £30bn.
New returns submitted by registered social landlords show that between 1989 and 2004, a total of £23.9bn was raised from banks and building societies. Further loans worth £6.2bn are forecast over the next two years.
According to the latest Private Finance Monitoring Bulletin, compiled jointly by the Housing Corporation and the National Housing Federation, lenders believe RSLs have the capacity to borrow more than they do, although the picture might alter as a result of mergers and changes to housing benefit.
Writing in the bulletin, published on September 23, Steve Amos, head of social housing at Barclays, said the sector was borrowing at a 'modest' level — partly because it values its assets conservatively.
Gabrielle Berring, head of housing finance at Bank of Scotland, said: 'The sector as a whole has substantial borrowing capacity and lenders appear to have no lack of appetite.'
PFsep2005
