hertfordshire housing conference the availability of funding mike jones director savills (l&p)...
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Hertfordshire Housing ConferenceThe Availability of Funding
Mike Jones
Director
Savills (L&P) Savills Financial Consultants
Tel: Mob: 07967 555 463
Tel: Dir: 01372 458922
Emails: MLJones@Savills.com
4th April 2011
Agenda
Is there any money out there?
Implications of short term debt
The loan portfolio of the future?
Implications of the CSR
Affordable rents
Aims of this session…
Traditional Bank/Building Society Lenders
2 long term lenders (plus other smaller participants)
1 from time to time
1 5/7 year lender
1 long term with re-pricing option
Interest rate margins
Is there any money out there?
Capital Markets
Investor appetite
Reduced spreads
Government issuance
HRA self- financing
Is there any money out there? (2)
Treasury/Business Planning
Refinancing risk
Mixed maturities
Assumptions for refinance rates, costs etc
Funder business plan approval
More lenders?
Use of security trustees
Implications of short term debt
Variable rate debt – banks/building societies
Index linked debt – capital markets (public issues, private placements,
club deals)
Fixed rate debt – capital markets (public issues, private placements,
club deals)
Separate hedging redundant
Unsecured debt
The Loan Portfolio of the future ?
For Grant
Down to £4.4bn (£2,5bn already committed)
£1.9bn at less than 20%
For Registered Providers
Asset management – disposals
Affordable rents
Fixed term tenancies
For Tenants
Housing benefit capped at £400 pw
Universal Credit at £26,00 pa
Restrictions on Job Seekers Allowance
Implications of the CSR
• Valuation issues
• Effect on gearing (debt per unit)
• Loan to value (risk profile)
• What is a market rent?
• Political risk
• Business planning assumptions
• Re-pricing! – lender consents
Affordable Rents
Any Questions?...................
Summary
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