Housing associations in England have come through the worst credit crunch in living memory, outperforming commercial property companies and the wider economy, with their financial health secure and revenues continuing to grow.

The Tenant Services Authority's (TSA) new study, The Impact of the Credit Crunch on Housing Associations, uses data from housing associations, property companies and commercial businesses from outside the housing sector to explore the effects of the economic downturn.

Key study findings include:

• The housing association sector, which is responsible for 2.4 million homes for social housing tenants, has maintained a stable performance amid significant fluctuations in the wider economy
• Associations offer a more secure return to investors over a long time period than is available elsewhere
• Associations responded quickly to the challenges of the economic downturn by taking prompt management action
• Housing associations outperformed the wider economy and avoided substantial permanent reductions in asset values
• The greater certainty of income in the housing association sector means that it has been able to operate at much finer margins compared to both the property and non-property sectors

Clare Miller, Executive Director Risk and Assurance said: "Housing associations have managed to maintain a stable performance through the most testing economic times in living memory. In a year in which there has been much debate about the new regulatory arrangements for social housing, we've played a full part in helping associations get through these challenges. We have maintained confidence in the regulated sector and we have seen an increase in lending to housing associations in a difficult market. Ensuring the continued financial stability of the sector remains a key objective.

"However, there is absolutely no room for complacency. Associations are much more exposed to the vagaries of the property market than they were a few years ago. This market continues to face considerable uncertainty; commercial development and building properties for outright sale will continue to present extra risk."

(CD/GK)