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