Housing associations must find new ways of raising money so they can plug gaps caused by cuts in government spending, says the Chief Executive of housing's independent regulator.

Peter Marsh, Chief Executive of the Tenant Services Authority (TSA), warned the sector that associations will miss out on the opportunity to match money on offer from private lenders if they are not more innovative with their assets.

Speaking at the Chartered Institute of Housing's annual conference, Mr Marsh suggested that one quarter of homes that had been built for shared ownership could be rented out at intermediate or full market rents when they become vacant, while 1 per cent could be sold outright. Councils might use similar ways to raise money depending on the outcome of consultations over the housing finance system.


There were also opportunities for housing associations to cut management costs by 10 per cent by sharing "back office services", he told delegates on 24 June during a session called 'Talk to the TSA'.

Between £25m and £35m of further private finance was available to invest in affordable housing providing the sector can match it with funds of its own, said Mr Marsh. "We can't risk that money not being drawn down so that new supply [of housing] dries up," he added.

(CD/GK)