Results of a survey conducted by the Tenant Services Authority (TSA) have shown that major lenders continue to have confidence in the social housing sector, as £3.5 billion of funding was secured in the last financial year.

Nearly all of the money needed to fund housing association business plans for the next year, has already been secured. Investors in the capital bond markets continue to see the sector as a sound investment, with bonds contributing nearly £1 billion of the total figure.

Approximately £1.5 billion of the funding was secured in the year's final quarter and the continued financial backing will see hundreds of new houses being built, causing a boost in social housing jobs.

The most recent quarterly survey which considered the first three months of 2010 showed that the low cost home ownership (LCHO) area continued to show signs of improvement, with the number of unsold LCHO homes falling for the sixth quarter in a row.

In the last 12 months, landlords achieved asset sales of £1.6 billion and it is estimated that total asset sells of £1.3 billion are likely in the next 12 months. What's more, anticipated landlord impairment charges will make up a mere 0.1% of the sector's assets.

TSA Interim Director of Regulatory Integration Jonathan Walters said in a statement: "Housing associations continue to hold the view that the finance and housing markets are stable or improving. The continued access to funding to finance their business requirements, increased interest from prospective buyers and demand returning to the housing market are the main factors contributing to this view.''

"However, there are still some challenges- accessing mortgages for shared ownership, the fact that deposits remain high for prospective buyers and the risk of repossession if unemployment increases," he added.