CML welcomes swift response to the report of the Ujima HA insolvency case inquiry

30 Jul 08

The Council of Mortgage Lenders welcomes the swift response from the Housing Corporation to the regulatory failings highlighted in the inquiry of the Ujima insolvency case and the tightening of its regulatory regime in advance of the transition to the Tenant Services Authority (TSA).

The measures outlined by the regulator will help to maintain lenders confidence in the sector at a time when uncertainty in the financial and housing markets has had an impact on funding to the sector. We particularly welcome the closer engagement CML and its members have had with the Housing Corporation during this period of uncertainty and the commitment made to continue this going forward to the new regulator.

Karen Doran, CML Senior Policy Adviser commented:

“It is essential that in circumstances such as those surrounding the Ujima HA case that the TSA undertakes to engage with lenders at an earlier stage. It is also important that robust and workable protocols are put in place to allow the TSA to consult with and receive cooperation from the new Homes & Communities Agency. We are reassured by the Housing Corporation’s toughed stance and changes to its regulatory regime and look forward to the response of the HCA on how it will support the new regulator in this.”

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 98% of all residential mortgage lending in the UK. There are 11.8 million mortgages in the UK, with loans worth over £1.2 trillion.

2. Ujima Housing Association became the first association ever to become insolvent in the housing association sector. The regulator of the sector, the Housing Corporation, announced an independent inquiry of the insolvency case in February 2008. CML submitted a written response and lenders gave oral evidence to the inquiry.

3. The Housing & Regeneration Act 2008 sets out provision for the establishment of a new social housing regulator and new investment agency. The new regulator, the Tenant Services Authority (TSA) and the new investment agency, the Homes & Communities Agency (HCA), are due to become operational from December 2008.

4. The inquiry report and HC response can be found here