Lender Concerns Prompt Housing Bill Change

Ministers are set to change the Housing and Planning Bill following concerns that a new system of managing sector insolvencies would lead to lenders asking social landlords for more security. Within weeks, the government is expected to table amendments to the proposed legislation, which is currently going through the House of Lords. The Bill as it stands would potentially damage lenders’ ability to realise the full value of their security on some loans. The bill allows the communities secretary to appoint an administrator when a housing association collapses. The problem arose because under the current drafting of the bill, the primary aim of the proposed new special administration regime is to ensure social housing assets remain in the social rented sector. Read more on Inside Housing.