Southern Housing Group chief says lack of lenders is making it hard for housing associations to build

Tom Darcey, chief executive of Southern Housing Group, has said that the credit crunch has made it difficult for housing associations to plan developments.

The government's target is 240,000 homes being built each year by 2016, with a total of 3 million new homes constructed by 2020.

Darcey that said a shortage of lenders was a problem. “At the peak of the housing boom only 180,000 homes were being built, when there was a much more beneficial environment. So I would think that the target of 240,000 is definitely at risk,” he said.

Nationwide, traditionally one of the biggest lenders in the sector, recently withdrew from the market completely.