Housing associations are forecasting loans of £3.1 billion in 2004/05 and 2005/06 respectively as they seek private finance agreements to complement grant aid received from the Housing Corporation.
The joint Housing Corporation and National Housing Federation report 2004 Private Finance Monitoring Bulletin analyses returns from nearly 500 associations to paint a picture of borrowing in the affordable housing sector. The new forecasts would take total borrowing to £30.1 billion, based on a starting point of £23.9 billion at 31 March 2004. For the first time, the Bulletin also includes lenders' views on a range of key issues facing the sector, with the conclusion that there is still a 'great deal' of capacity for borrowing reflected in the collective financial profile.
In addition, lenders sounded a cautionary note, stating that whilst associations have capacity for future borrowing, they saw sector rationalisation, rent restructuring, Housing Benefit reform, and slowdowns in the housing and residential mortgage markets as being among the biggest issues to face the affordable housing sector in coming years. Other key findings of the report include:
The 15th Private Finance Monitoring Bulletin is available on the Housing Corporation and National Housing Federation websites: www.housingcorp.gov.uk and www.housing.org.uk.
The Home Builders' Federation signed up to a strongly-worded letter drafted by the G15 group of London's largest housing association, which calls on the Housing Corporation to reduce the paperwork required for social housing grant bids.
This was the first time the two had combined to lobby for changes to the grant regime. It was a response to the Corporation's demand for bids to be accompanied by a workbook, comprising a complex set of financial data. A key argument for change was that workbooks should only be required for schemes, which were likely to qualify for grant.