Falling land and house prices mean 40% more is knocked off associations' assets than last year

Housing associations have had £174m written off their assets in 2008/9 as land and house prices tumbled.

During the year, 92 housing associations reported the impairment charges, driving the figure up 40% on last year.

But the Tenant Services Authority (TSA), which regulates housing associations, said the figure represented less than 0.5% of the associations' total assets. It added that none of the associations had reported financial difficulties or were in breach of covenants in their loan agreements with lenders because of the charges.

Elsewhere in the TSA's latest quarterly annual survey, it reports that the number of unsold homes had continued to fall, down 7% to 8,713 homes.

Housing associations also converted fewer unsold low-cost home ownership (LCHO) homes into rented accommodation, down from 2,200 to 344.