By Neil Merrick
27 November 2009
Housing associations finance directors are more optimistic about the economy than at any time during the past 12 months, a quarterly survey shows.
Half of finance directors interviewed by the Tenant Services Authority thought the finance markets has improved in the past quarter, while just 1% said they have deteriorated. Thirty-eight per cent believed the housing market had improved, with 61% saying it remains the same as in the previous quarter.
A year ago, the TSA’s quarterly survey of registered social landlords with more than 1,000 homes showed that three-quarters of finance directors thought both the finance and housing markets were deteriorating.
According to the latest survey, published on November 27, access to private finance remains good. However, RSLs appear to be borrowing less and paying more for loans. Just £1.2bn was arranged in new loans during the first six months of 2009/10, compared with £7.1bn in the previous 12 months.
‘Finance directors report that the supply of credit appears to have improved, with longer-term loan finance now available, possibly influenced by quantitative easing,’ the survey says. ‘Although lending margins appear to be better than they were six months ago, they remain higher than the sector has experienced in the past.’
RSLs are also finding it slightly easier to sell properties. A total of 6,630 homes were unsold at the end of October, down 19% on the second quarter of 2009. In January, the number of unsold properties exceeded 10,000.
Between January and April, nearly 5,000 homes that had been built for low-cost ownership schemes were converted for renting. Just over 1,000 homes were switched during the three months to October while RSLs generated receipts of £437m.
A separate TSA study, also published this week, shows associations will need to borrow nearly £20bn from banks during the next five years. Clare Miller, executive director for risk and assurance, said it was taking steps to ensure there was an active and competitive private finance market. ‘While we’re seeing a continued willingness to lend to the sector, we are not complacent,’ she added.
27 November 2009
Housing associations finance directors are more optimistic about the economy than at any time during the past 12 months, a quarterly survey shows.
Half of finance directors interviewed by the Tenant Services Authority thought the finance markets has improved in the past quarter, while just 1% said they have deteriorated. Thirty-eight per cent believed the housing market had improved, with 61% saying it remains the same as in the previous quarter.
A year ago, the TSA’s quarterly survey of registered social landlords with more than 1,000 homes showed that three-quarters of finance directors thought both the finance and housing markets were deteriorating.
According to the latest survey, published on November 27, access to private finance remains good. However, RSLs appear to be borrowing less and paying more for loans. Just £1.2bn was arranged in new loans during the first six months of 2009/10, compared with £7.1bn in the previous 12 months.
‘Finance directors report that the supply of credit appears to have improved, with longer-term loan finance now available, possibly influenced by quantitative easing,’ the survey says. ‘Although lending margins appear to be better than they were six months ago, they remain higher than the sector has experienced in the past.’
RSLs are also finding it slightly easier to sell properties. A total of 6,630 homes were unsold at the end of October, down 19% on the second quarter of 2009. In January, the number of unsold properties exceeded 10,000.
Between January and April, nearly 5,000 homes that had been built for low-cost ownership schemes were converted for renting. Just over 1,000 homes were switched during the three months to October while RSLs generated receipts of £437m.
A separate TSA study, also published this week, shows associations will need to borrow nearly £20bn from banks during the next five years. Clare Miller, executive director for risk and assurance, said it was taking steps to ensure there was an active and competitive private finance market. ‘While we’re seeing a continued willingness to lend to the sector, we are not complacent,’ she added.
