We continue to have discussions with the Housing Corporation and housing associations on RSLs’ borrowing capacity. In March 2007, the corporation published ‘Unlocking the Door’, analysing how past investment locked up in stock could be released to finance more affordable housing. The corporation has concluded that there is unused capacity and that housing associations can borrow more against their existing businesses. There is therefore scope for efficiency savings to be secured for new affordable housing.
The Housing Corporation is currently considering the responses it has received to its consultation document on recycled capital grants and links to property values.