This means that 99% of the money required by housing associations to fund business plans, including building new homes, over the coming 12 months is already in place.
The latest quarterly survey (January-March 2010) also shows that:
• The market for low-cost homes continues to show signs of improvement with a reduction in the number of unsold low-cost home ownership (LCHO) homes for the sixth quarter in a row – 43% of these unsold homes were reserved but sales had not yet completed
• Landlords achieved total asset sales of £1.6 billion in the last 12 months. This compares favourably with £1.3 billion total asset sales forecast for the next 12 months
• 65 landlords are anticipating impairment charges totalling £113 million in their 2010 accounts – this represents 0.1% of the £95 billion value of the sector’s assets.
TSA Interim Director of Regulatory Integration Jonathan Walters said, “Housing associations continue to hold the view that the finance and housing markets are stable or improving. The continued access to funding to finance their business requirements, increased interest from prospective buyers and demand returning to the housing market are the main factors contributing to this view.
“However, there are still some challenges – accessing mortgages for shared ownership, the fact that deposits remain high for prospective buyers and the risk of repossession if unemployment increases.”
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