18 April 2008
Housing Corporation officials are keeping a close eye on loans to registered social landlords to ensure that housebuilding plans for the next three years are not derailed.
In spite of growing doubts over the long-term appeal of social housing to private lenders, the corporation is confident that most RSLs that applied to join the 2008/11 National Affordable Housing Programme have loan facilities in place to back up grants.
Peter Marsh, the corporation's deputy chief executive, said RSLs negotiate loans an average of 22 months in advance.
Many also 'top up' loans by renegotiating with lenders. 'The level of that activity is going to be substantially lower,' added Marsh.
One of the largest lenders to RSLs, Nationwide, has stopped offering new loans. Just three lenders still provide finance deals although others, including Nationwide, stress they will honour existing agreements.
RSLs traditionally enjoy relatively cheap credit because they are seen as low-risk borrowers. They need to raise £12bn in the next three years for development and improvements.
PFapr2008
