Newspaper round-up

LONDON (Reuters) - Here are the business headlines from Friday's newspapers.

The Financial Times

SOCIAL LANDLORDS THROW LIFELINE TO STRUGGLING RIVALS

Social landlords Affinity Sutton, Circle Anglia and L&Q Group have thrown a lifeline into the housing sector after assuring regulator Tenant Services Authority that they will lend millions of pounds to some of their struggling competitors. L&Q has also agreed to provide a separate back-up loan of up to 20 million pounds to rival Genesis Housing Group. David Montague, chief executive of L&Q, said: "We have a responsibility towards the sector to make sure we support each other." Keith Exford, chief executive of Affinity Sutton, said landlords could lend to one another quicker than banks, which have become more hesitant when it comes to property lending.

LONDON LURES FOREIGN PROPERTY INVESTORS

London property market is stormed by foreign investors who rush to take advantage of steep price falls and the weak pound, new figures by consultants Savills have shown. Sterling's declining value is dragging costs for overseas buyers down by 35-50 percent whereas prices for domestic investors have fallen by about 15 percent. Thursday's decision by the monetary policy committee to axe rates by 50 basis points is expected to increase foreign demand even further. Overseas property investors have played a key role in previous housing market recoveries in central London, where foreign interest tends to concentrate.

BUSINESS LEADERS COMPLAIN OF CREDIT SHORTAGE

Britain's business leaders have called banks to resume the flow of credit lines, arguing that the lack of access to finance is the key factor that determines the country's financial outlook. Commenting on the interest rate cuts by the Bank of England, they said the reductions would not be enough on their own to address the problems faced by the country's companies. Justin King, chief executive of J Sainsbury (SBRY.L), said the credit shortage was a bigger problem than the cost of borrowing. "Our suppliers are saying that what they have to pay is not issue, it is that there is no money being lent in the first place," he said.

PUSH TO SELL SOFA WORKSHOP