Housing associations lend cash to rivals

Three cash-rich housing associations have agreed to lend millions of pounds to some of their competitors, struggling in the credit crisis. The associations – Affinity Sutton, Circle Anglia and L&Q Group – are three of 10 originally approached by the Tenant Services Authority (TSA) to see if they would be willing to lend short-term funds, as they could lend to one another quicker than a bank could. Nearly one in 10 associations assessed for financial viability have been put on ‘amber’ watch by the TSA.