Housing Corporation will eye those most at risk from the credit crunch

Housing associations will face increasing regulatory scrutiny in the wake of the credit crunch, according to the deputy chief executive of the Housing Corporation.

Peter Marsh told the annual Chartered Institute of Housing conference in Harrogate that it was natural a regulator would take a closer interest in the businesses of the sector in the wake of such widespread financial difficulties.

He said: “Any risk regulator will increase engagement at a time like this, and we are doing that, including with those at most risk.”

The Housing Corporation is responsible for regulation of housing associations in England.

Marsh added that housing associations needed to work hard to ensure they were still meeting all their banking covenants or risk having their development finance pulled. The Corporation has already suffered the first ever collapse of a housing association this year, with specialist association Ujima undergoing a forced transfer to L&Q in January.