The latest figures from the Tenant Services Authority (TSA) demonstrate that housing providers have continued to display financial strength in a challenging economic environment. The figures also indicate that the regulated housing sector has retained the confidence of major lenders with new finance continuing to be attracted from both banks and the bond market.
The TSA's latest quarterly survey of housing associations (April-June 2010) shows that almost £1 billion of new loan facilities were arranged in the quarter, with a further £400 million in the pipeline. Just under 10% of these new loan facilities were in the form of bond issues, demonstrating that the sector continues to be an attractive investment to both banks and institutional investors.
Other key findings from the survey are:
The latest publication also outlines a number of the key challenges for the sector, including exposure to the housing market due to the lack of availability of mortgages for potential buyers, impacting on the number of sales.
Housing Minister Grant Shapps has called on housing associations to throw open their books and expose how they spend money to public scrutiny.
Mr Shapps said - with public subsidies being reduced, housing associations will need to change so they can do more for less, and continue to meet the needs of the communities they serve.
The Minister also said - all organisations that manage and build social housing should open their books and publish their expenditure, so tenants can see how their money is being spent, and the wider public can see they are getting value for money.
The Minister added that anyone who relies on taxpayers' money to provide a public service will need to prove that they are providing the best possible service with the money available.