Posted 20.05.13
Moody's Further Downgrades Housing Associations in England
Moody's has announced that a review of ratings in the housing association sector has resulted in the downgrading 29 English social landlords. This is due to concerns about regulation and follows a downgrading in February, which was prompted by a cut to the UK's national rating.
The official reason from Moody's is that the rating cuts are due to a reassessment of the potential support the Government could offer housing associations if they run into financial difficulties
Affinity Sutton is the only housing association to escape the latest cut and retains its Aa3 rating.
The likely implication of this latest rating downgrade is an increase in the interest rates housing associations have to pay when they borrow money, which will dent confidence lenders have in the sector.
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Funding for Homes Includes Allocation to Beat Bedroom Tax in Wales
The Welsh Government has provided £20 million to build smaller homes to reduce the number of people hit by a penalty for under-occupation of social housing.
Jane Hutt, the Welsh finance minister, has announced a package of £30 million to increase investment in housing supply. This is part of a larger £75 million allocation and the funding has been made available from recalculations as a result of changes to Westminster-allocated budgets.
The allocation includes £20 million for social housing grant that is specifically to target investment in providing housing for individuals and families that may be adversely affected as a result of reductions in Housing Benefit.
This will involve a programme of building one and two-bedroom homes for people that may be hit by the Bedroom Tax, which adversely effects social housing tenants who are deemed to have a spare bedroom.
The Finance Minister also announced 10 million to expand the pilot of the houses into homes initiative, which helps bring empty homes in Wales back into use.
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English Councils to Share £668 million for Building New Homes
The New Homes Bonus Grant determinations for 2013/14, which have been announced by Communities and Local Government, will see councils across England having a share of £668 million for building new homes.
The New Homes Bonus Grant, which is given to councils for each new home they build, is equal to the Council Tax of that new home for the first six years.
