星空传媒

Barclays Bank has increased the amount it will let housing associations borrow by 拢50m.

The bank upped its limit for an individual association from 拢100m to 拢150m several months ago in the wake of the Housing Corporation鈥檚 decision to give the bulk of grant to its 70 partner associations.

Many of the partner associations have been borrowing more money to correspond with their increased grant allocations. In addition, the bank鈥檚 loan portfolio has grown by 拢2bn so it can afford to lend associations more.

Dennis Watson, deputy head of the bank鈥檚 social housing team, said: 鈥溌�150m out of a loan book of 拢3.5bn is a much more acceptable risk than 拢100m out of a loan book of 拢1.5bn because it鈥檚 a smaller percentage of that whole.鈥�

He continued: 鈥淎 lot of banks are mindful that if there are 70 preferred status RSLs out there, the likelihood is that grant funding will get more concentrated and, as a consequence, future loan finance required will get more concentrated.鈥�

The bank now has about 10 housing associations with more than 拢100m in loans.

Watson said the bank could increase its lending limits once again if its loan book reached 拢5bn or 拢6bn.

Bob Wilson, head of finance policy at the National Housing Federation, welcomed the news. He said: 鈥淚t will enable those individual associations and assist the sector in its huge investment programme.鈥�

Other banks are also believed to be raising their lending limits while others, which had no official ceiling, are striking bigger deals that would have been more difficult to do when their loan books were smaller.

Paul French, relationship director at Lloyds TSB, said the bank had never had a loan limit. However, the largest amount it had committed to registered social landlords had gone up from about 拢50m two years ago to more than 拢200m now. The bank鈥檚 loan book had also grown from about 拢500m to 拢1.6bn over the same period, he added.