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Landlords continue to tap bond market

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Published by 24publishing for 24dash.com in Housing and also in Communities, Finance, Local Government

Landlords continue to tap bond market Landlords continue to tap bond market

Housing associations are continuing to turn to the capital markets to raise finance with 60 per cent of the £1.3bn of new funding arranged in the three months to the end of September coming from capital funding or private placements.

The figures were disclosed by the Homes and Communities Agency (HCA) which publishes a quarterly survey of providers owning or managing more than 1,000 homes.

As in the previous quarter, it revealed that providers continue to turn to the capital markets with bond issues of £733m arranged.  Five large own-name bond issues raised £675m, the HCA said.

However, it warned that swap rates remained volatile and again decreased in the quarter, increasing the sector’s mark-to-market exposure to £1.6bn.  “This is an area the regulator will continue to monitor,” the HCA said. 

It said 96% of respondents anticipate that current debt facilities are sufficient for more than 12 months.

Jonathan Walters, deputy director of regulatory operations, said: “While the UK economy reported growth during the quarter – and providers continued to benefit from low interest rates on their variable rate debt – it remains vulnerable to external shocks.  In this context providers will need to maintain a focus on robust financial management if they are to continue meeting their objectives, and the standards of the regulator.”

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