Associations hit by £396m cash calls

The demands came as banks sought security for complex financial instruments known as ‘stand-alone swaps’. Associations took out the deals to guard against interest rate rises, but banks have the option to call in security at short notice.

Regulator the Tenant Services Authority, which revealed the figures in a quarterly update on the impact of the credit crunch on housing associations, said no association’s financial viability was called into question as a result.

The update also shows the number of unsold homes has increased. There are now 10,060 unsold homes, with 4,560 remaining unsold for more than six months. In the last quaterly update the figures stood at 9,655 and 3,677 respectively. Almost 4,000 shared ownership homes were converted to social rent.

The TSA said its update shows the housing association sector is well placed to cope with the recession.

Associations have access to £5 billion over the next 12 months, with £14.6 billion already in place.

Chief executive Peter Marsh said: ‘With social housing waiting lists rising by the week, demand for affordable homes for rent is at an all-time high. This survey shows housing associations are well placed to continue to build the new homes that England needs.’

The survey was carried out in January, and gathers data from all housing associations with more than 1,000 homes.

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