CML welcomes stand-alone housing regulator announcement

The Council of Mortgage Lenders welcomes today's government announcement that it has decided to create a new stand-alone regulator for housing associations that are registered social landlords (RSLs). The CML had argued in favour of this approach rather than the transfer of regulatory responsibilities to the Audit Commission, which was the alternative outcome.

CML members have a total of almost £40 billion invested in RSLs for new build, repair and improvement. They are able to lend to RSLs on competitive terms that reflect the existence of robust regulation. The CML is therefore pleased that the government has adopted the key recommendations of the Cave review of social housing, to ensure that a regulatory regime will continue to be in place that will give lenders confidence and so safeguard future investment in RSLs.

While the CML recognises the arguments for a single system of regulation for RSLs, local authorities and other providers of social housing, the government has made the right decision in postponing implementation of this integrated approach.

CML deputy head of policy Andrew Heywood, who is responsible for the CML's policy development on social housing issues, commented:

"This decision is good news for housing associations. It will help to maintain lender confidence at a time of regulatory change, and so safeguard a continuing flow of private funding to help build and improve more homes.

"A well-planned, safe transition period to the new regime is essential. We and our members look forward to working with government, the Housing Corporation and the new regulator to ensure that this is achieved."