Housing associations building in the commercial market is
“risky” according to the ratings agency Moody’s. Analyst Jeanne Harrison said:
“The income generated from outright sales activity are far less predictable
than those from rents in the social housing. It also exposes them to the
cyclicality of the property market.” She added that social housing was a better
bet, although it depended on how it was funded: “We do have a hierarchy of the tenures
of what we think is the most risky to the least risky, and we do view core
business with rents linked to government is very safe. Social rented properties
because of the lack of capital grant are being funded by debt and sales.” Read
more on 24housing.
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