There are enough banks lending to housing associations to sustain a healthy market, the sector was told last week.
Some housing professionals had feared there were not enough funders in the sector. But Rachel Terry, an adviser at funding consultant Hacas Exchequer, told last week's National Housing Federation conference that the market was "exceptionally healthy".

She said unpublished research done for the NHF showed that banks' borrowing charges to the sector were at their lowest-ever level and about 0.5% lower than similar but unregulated sectors, even though there are only four major lenders in the market. She added: "You may only get two or three good offers but, compared with other markets, they are exceptionally good.

"It might be nice to have more lenders but I do not think there is a need for more than we have."

She said it was unlikely that other banks would start making loans to associations because of the cost of setting up an expert team and the need to undercut other lenders in an already competitive market.

In addition, many banks prefer to only lend for five years rather than the 30-year loans demanded by many associations.

Source

Housing Today