Housing associations hold Treasury talks in bid for cheaper borrowing

Published by 24publishing for 24dash.com in Housing and also in Central Government

Danny Alexander, the chief secretary to the Treasury, met last week with housing association chiefs to discuss plans to make it cheaper for them to borrow more money in the capital markets.

Ideas are still at an incipient phase, but it is understood that the plan could feature the Bank of England purchasing social housing bonds as part of its quantitative easing programme.

Housing associations have been increasingly turning to the capital markets as banks look to re-price existing debt. 

According to the Financial Times, housing associations currently have a combined debt of £60 billion - £50 billion of which is in bank loans. Over 20 housing associations have issued £5.4 billion of bonds since 2008. The amount is greater than in the whole of the previous 20 years.