Possible difficult to let properties in low demand areas. Housing associations are reliant on government funding to develop and build new homes. Government regulations and legislation can be problematic within social housing e.g. the implementation of bedroom tax creating difficulties for tenants to be able to pay any shortfall in rents, creating higher rent arrears. Reliant on government funding to develop new homes.The macro factor of demographics and the external strength of continuous demand for housing are connected as they both play a large part in the demand for homes in certain areas. To further develop new properties Choice has to ensure that there is demand for social housing in the area and also what type of housing the demand if for. If the demographics of an area change and the population reduces after properties have been built this could lead to difficulties in letting the properties. If, however, the population increases in that area it may lead to further development of social housing within that community.Both the economic and legal factors are also connected to strengths and weaknesses. If there are any changes in regulations within the housing sector the can have an impact on how Choice Housing operate. As previously mentioned, the implementation of the bedroom tax has had a large impact on how the Income Recovery team and Housing Department operate regarding the allocation of homes to meet applicant’s requirements and also regarding tenant’s rent arrears.