The TSA issued  its latest quarterly survey this week under the headline Social housing providers respond to difficult economic conditions with cautious approach.

Key conclusions from the quarter are grim reading for the sector,  debt draw-downs and new financing are forecasted to be the lowest reported since the quarterly survey began, reflecting both associations current financing needs and market conditions. While there is continuing interest in bond financing, the timing of issuance is important and associations are working with advisers to get that right. Mark-to-market exposure appears under control, but conventional lending is limited to a small number of banks, mainly lending to their existing customers on shorter terms, although associations continue to be able to access finance where needed.

The TSA's Deputy Director of Regulatory Operations, Jonathan Walters said:

"The October Quarterly Survey shows how the sector are responding responsibly to the difficult conditions affecting the wider economy and the sector as a whole. It is understandable that providers are showing caution and taking the necessary steps for them to manage their risk exposures and protect their tenants."

We do not wish to be harbingers of doom at this time of the year when we all want to make merry, but at a recent advisers meeting to discuss the statutory consultation believed that the next two years will get economically worse.  Reduced access to finance is not the only reason for this, the other will be the introduction of  welfare reform and housing benefit calculation to reflect the size of the household, taking effect from April 2013. Tenants considered to be over occupying, could receive a reduction in Housing benefit of around £20.00 per week.  In London alone, 1 in 5 social housing tenants are believed to have more bedrooms then they are considered to need. Are the management and board carrying out a full risk assessment now so that they can plan how to deal with this?

An amendment passed in the House of Lords on 13 December, watered down the governments proposals.  Lord Richard Best's amendment means households will be able to keep a spare room, without having to pay the tax if there is no suitable accommodation available. However the House of Commons could overturn this at a later stage. Those households with two spare rooms will still be affected.

The new value for money regulation to be introduced in April 2012, will make it imperative that your board has a strategy in place if it does not want to have its regulatory judgement downgraded - making it even harder to get access to finance.  Boards need to act now! One thing you can do is to find out more preparing your Value for Money strategy is to come to out Value for Money conference in Birmingham on 9th February .Speakers include Mick Warner of the TSA and experts in how to save costs and establish your social returns on investment. To book a place email  This e-mail address is being protected from spambots. You need JavaScript enabled to view it For more information go to VFM conference.