Housing Associations No Longer Able To Borrow To Provide New Homes

Housing AssociationA move which could limit new affordable homes being built by Housing Associations in Wales will be opposed by the Welsh Government.

In September, the Office for National Statistics (ONS) announced housing associations should be considered part of the public, not private, sector.

But the Welsh Government promised to take “whatever steps are necessary” to reverse the change, following concerns reports BBC News.

Community Housing Cymru (CHC), which represents housing associations in Wales, welcomed its pledge to act.

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The ONS decision led to concerns that housing associations would no longer be able to borrow the money needed to provide new houses.

At the moment not-for-profit housing associations are considered to be in the private sector and can borrow as much money as they can afford, within certain regulations.

But CHC fears if finances were overseen by the UK treasury, the associations’ levels of borrowing could be restricted, meaning they would not be able to build as many houses.

For the full article visit the BBC News website.