Magazine article Public Finance

Credit Crunch Hits Borrowing Costs

Magazine article Public Finance

Credit Crunch Hits Borrowing Costs

Article excerpt

Social landlords face a tough outlook as the cost of borrowing money rises following the credit crunch, housing finance directors have been told.

Mark Webster, head of housing at Nationwide Building Society, told the National Housing Federation's housing finance conference at Warwick University that lenders were reviewing the rates at which housing associations can borrow funds, with some less keen to work with RSLs than before.

'The continuing uncertainty is causing lenders to be far more prudent and conservative in their approach [to the sector],' he said. 'It's quite possible that we will not see a return to pre-credit crunch markets.'

Nationwide is one of six lenders that together account for about 80% of total RSL borrowing. Earlier this year, Bradford & Bingley became the third lender to announce its withdrawal from the social housing market.

Webster warned that associations might be left with little room for manoeuvre when it came to agreeing private finance deals. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.