1. Hertfordshire Housing Conference The Availability of Funding Mike Jones Director Savills (L&P) Savills Financial Consultants Tel: Mob: 07967 555 463 Tel: Dir: 01372 458922 Emails: MLJones@Savills.com 4 th April 2011

2. Agenda  Is there any money out there?  Implications of short term debt  The loan portfolio of the future?  Implications of the CSR  Affordable rents Aims of this session…

3.  Traditional Bank/Building Society Lenders  2 long term lenders (plus other smaller participants)  1 from time to time  1 5/7 year lender  1 long term with re-pricing option  Interest rate margins Is there any money out there?

4.  Capital Markets  Investor appetite  Reduced spreads  Government issuance  HRA self- financing Is there any money out there? (2)

5.  Treasury/Business Planning  Refinancing risk  Mixed maturities  Assumptions for refinance rates, costs etc  Funder business plan approval  More lenders?  Use of security trustees Implications of short term debt

6.  Variable rate debt – banks/building societies  Index linked debt – capital markets (public issues, private placements, club deals)  Fixed rate debt – capital markets (public issues, private placements, club deals)  Separate hedging redundant  Unsecured debt The Loan Portfolio of the future ?

7.  For Grant  Down to £4.4bn (£2,5bn already committed)  £1.9bn at less than 20%  For Registered Providers  Asset management – disposals  Affordable rents  Fixed term tenancies  For Tenants  Housing benefit capped at £400 pw  Universal Credit at £26,00 pa  Restrictions on Job Seekers Allowance Implications of the CSR

8. Valuation issues Effect on gearing (debt per unit) Loan to value (risk profile) What is a market rent? Political risk Business planning assumptions Re-pricing! – lender consents Affordable Rents

9. Any Questions?................... Summary