Housing associations will find out in September if they can benefit from the Bank of England’s £10bn fiscal stimulus programme. The central bank announced it will buy £10bn of corporate bonds in non-financial companies which make “a material contribution” to the UK economy.
This has raised hopes that housing association bonds will be eligible for the money-creation programme designed to allay fears of a stagnating economy.
The Bank of England entering the housing association bond market would increase demand for bonds and could dramatically reduce the already low cost of finance for landlords.