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Housing associations included on bond purchase scheme

Following discussions with the Federation, the Bank of England have included housing associations on their £10bn Corporate Bond Purchase Scheme.

Find out more.

Potential changes to association borrowing conditions

The Basel Committee on Banking Supervision (BCBS), which coordinates banking supervision worldwide, has proposed a series of changes to the banking system that could restrict the availability of private finance to fund housing associations and/or increase their borrowing costs.

The three BCBS proposals that will have a particular impact on lending to housing associations are:

  1. New category – income-producing real estate.
  2. Creating a capital floor.
  3. Abolishing the Advanced approach for borrowers with turnover over €200m.

Download this document to find out more.

Standardised Certificate of Title for the housing sector

To access private finance, housing association use social housing assets as security. The securitisation procedure in the sector is difficult for a whole variety of reasons which means the process takes up to 12 months when 6 months might be more reasonable and is needlessly expensive.

Part of this problem arises because of the multiplicity of Certificate of Titles in existence which varies between lenders and additionally varies dependent upon solicitors used. The differing requirements leads to uncertainty and additional time costs.

A housing association securitisation working party has developed a standardised social housing Certificate of Title format which has been universally adopted by borrowers, lenders, and their legal advisers across the sector. This is a positive move for the sector which will produce significant time and costs savings.


The Securitisation Working Group made up of 12 representatives (including lawyers, borrowers and valuers) was set up in August 2014. Representatives of the group are from L&Q, Addleshaw Goddard, Allen & Overy, Clifford Chance, Trowers and Hamlins, Devonshires, Wright Hassall, Winckworth Sherwood, JLL and Savills.

The group have been working to agree a consistent approach to the mortgagee protection clause (MPC) within Section 106 Agreements to ensure that housing associations can achieve best possible funding value when securing loans against the assets.

The group agreed a 'sector approach' to MPC in 2015 with a view to agreeing an example of how associations could obtain MV-STT on assets being used for private finance. This example clause is available to download (document, opens new window) and is already in use by some local authorities.

Please note that there will be other MPC which will afford sufficient protection for funders and allow housing associations to achieve MV-STT. Housing associations are encouraged to consider the wording of the MPC within the Section 106 Agreements and understand what asset funding value could be achieved at the earliest possibility – i.e. at the point of negotiation using in house expertise or external advice.

The group will continue to engage with relevant stakeholders to achieve buy-in to agree a standardised approach to MPC. The endeavours of the group are fundamental to enabling housing associations to secure the funds needed to build the homes to end the housing crisis. 

We will continue to provide updates from the group as matters progress.