To ask the Secretary of State for Communities and Local Government what assessment she has made of the effect of the credit crunch on (a) the borrowing power of housing associations and (b) the building of affordable and social housing. (206050)

[holding answer 16 May 2008]: The Housing Corporation has analysed the borrowing capacity of the sector to deliver housing associations’ current business plans. It published its assessment of the housing association funding and development market on 12 May 2008. The “Affordable Homes Developers Report” is available on their website at:

www.housingcorp.gov.uk

The corporation believes that the ability to obtain finance at a reasonable price is not an immediate concern for housing associations and the longer-term outlook for private finance for affordable housing remains positive. The Department and the Housing Corporation continue to liaise with lenders and their representatives to discuss the regulatory and funding environment and its implications for lenders in the housing association sector.