Consultant Pricewaterhouse Coopers is working on 拢100m deals with two housing associations in the hope of solving their funding crises.
The pair face problems experienced by many developing associations who do not have enough unsecured properties to take out new loans and therefore find their development programmes grinding to a halt. PWC is working with the two registered social landlords to refinance their past loans and take out future borrowing secured against cashflow rather than properties.

Paul Fiddaman, senior manager at PWC, said: 鈥淥ne client we are working for got a business plan projection indicating they wouldn鈥檛 have sufficient unused security to fund development in two years鈥� time.

鈥淲e are almost at the next bidding round which would expect to come on stream at this time. They couldn鈥檛 bid with confidence unless they looked at their loan agreements.鈥�

They couldn鈥檛 bid with confidence unless they looked at the loan agreements

Paul Fiddaman, PWC

The two RSLs will pick their preferred lenders next month and the deals will be agreed in principle by the end of the year.

The National Housing Federation is set to reveal research at its conference next week on how much more borrowing associations can do. It is expected that some developing associations will not have enough unused security left to sustain their long-term borrowing needs.

Source

Housing Today