CLG Considers Change to Help LSVTs Borrow

The government is considering a proposal to boost the borrowing capacity of stock transfer associations by changing the way they are allowed to value their properties. The CLG confirmed this week it is looking at a proposal from the National Housing Federation (NHF) to allow large scale voluntary transfer (LSVT) associations greater freedom over how they value their stock. Current legislation requires LSVTs to use a system called Existing Use Value Social Housing (EUVSH) to value stock, whereas other housing associations have the option to use a system called Market Value Subject to Tenancy. EUVSH values stock at around 30% to 45% of what the stock is actually worth - compared with 60% for MVST. Read more on Inside Housing.