As the property and funding landscape evolves, housing providers face increasing complexity in managing security for loan arrangements. Regulatory changes, valuation challenges, and the need for flexibility mean that a proactive approach is essential. Here are three critical questions to guide your strategy in 2026:

1. Are you carrying excess security?

If you’ve pledged more collateral than your lender requires, you may be tying up valuable assets unnecessarily. Start by reviewing your asset and income cover tests before any release or reallocation exercise.

Next, check the age of your Certificate of Title (CoT). An older CoT might still be valid for new charging transactions, saving you time and cost on due diligence.

Finally, understand your valuation basis. Many properties are still valued at EUV-SH (Existing Use Value – Social Housing), which can significantly limit borrowing capacity. Unlocking the higher MV-STT (Market Value – Subject to Tenancy) basis often comes down to addressing restrictive clauses or updating mortgagee exclusion provisions. If you’ve acquired properties through a large-scale voluntary transfer, deregulation could open the door to higher valuations - don’t leave that value on the table.

2. Do you have unencumbered properties ready?

Unencumbered assets are a powerful tool for future funding, but only if they’re ready to charge. Start by understanding construction dates; due diligence requirements differ for properties under and over ten years old.

For new developments, do not delay. Collate key property charging documents throughout the build process and beyond. This proactive approach avoids delays and ensures you can move quickly when funding opportunities or needs arise.

3. Are you clear on the valuation basis?

Before selecting properties for charging, conduct a pre-charging health check. This identifies any issues that could impact chargeability or valuation basis, eliminating the risk of falling short on asset value during a live property charging transaction.

A thorough review upfront prevents costly secondary transactions and delays, ensuring your funding strategy stays on track. Understanding valuation drivers, such as restrictions on occupation or use, can make the difference between meeting your asset cover requirements and scrambling for alternative properties.

In 2026, property security isn’t just about raising funding - it’s about strategic asset management. By asking these three questions, housing providers can unlock hidden value, streamline funding processes, and maintain flexibility in an increasingly complex environment. 

For more information

For more information or advice on property security, please contact me.