The National Housing Federation (NHF) said the financial health of the social housing sector remains robust and believes it will weather the current economic downturn.

Some recent national press reports have claimed the sector is experiencing financial problems, stating that six associations are being closely watched by the sector's regulator, the Tenant Services Authority, because of the challenges thrown up by the current downturn.

However, although the sector is facing a number of financial challenges, Federation Chief Executive David Orr said that housing associations are actually better placed than most in the economy to meet the current financial challenges.

-- Advertisement --

He said: "With the credit crunch and general downturn, the economic world has been turned on its head.

"The social housing sector, like most sectors across the globe, is facing some financial challenges.

"However, the finances of the housing association sector remain robust and strong, with its underlying income stream coming from social rent. This source of finance remains secure.

"With increased flexibility from partners and stakeholders, the sector will continue successfully to deliver new homes and strong communities.

"At this current challenging time, the Federation will continue to work closely with the TSA, Homes and Communities Agency, the Government and other stakeholders, to ensure that associations are able to do their work as effectively as possible."

(CD/KMcA)