The Regulator of Social Housing (RSH) has released its latest quarterly survey results for the period from October to December 2025, revealing continued robust investment within the social housing sector. Landlords remain able to secure necessary funding to support both new developments and the maintenance of existing homes, signalling financial resilience despite rising costs.

Strong Investment and Financial Health

The survey, published on 26 February 2026, covers financial data from 199 private registered providers (PRPs), including housing associations and other private entities managing over 1,000 homes. It highlights that over £4 billion in funding facilities were agreed during the quarter, demonstrating ongoing confidence in the sector’s financial viability.

Net of loan repayments, drawn debt increased by £2.7 billion, contributing to a 17% rise in cash balances, which reached £4.2 billion. However, the report notes that these cash reserves are expected to decline over the next 12 months as providers deploy funds for planned activities.

Rising Costs in Repairs and Maintenance

Expenditure on repairs and maintenance continues to grow, with quarterly spending at £2.4 billion and a total of £9.4 billion over the 12 months to December 2025. This represents a 7% increase compared to the previous year, reflecting ongoing pressures on landlords to maintain and improve their housing stock amid rising costs.

Development Spending and Future Outlook

Investment in new homes saw a slight dip in quarterly development spend to £3.7 billion. Despite this, the 12-month development forecast has increased marginally. It is important to note that these projections do not yet include anticipated development under the new Social and Affordable Homes Programme (SAHP), which opened for bids in February 2026. This programme is expected to influence future investment decisions and development activity significantly.

Financial Stability and Interest Cover

Cash interest cover, excluding sales, remained steady at 78% for the year to December 2025. However, the sector’s forecast interest cover is projected to tighten to 67% over the coming year, indicating that landlords will need to maintain careful financial management to navigate constrained interest cover levels.

Sector Commentary

Will Perry, Director of Strategy at RSH, commented on the findings: “We’re seeing repair and maintenance costs rising across the sector, though more slowly than in recent years. Despite this, investment in new homes is being sustained, and landlords are still able to secure the funding they need for new homes and maintain existing ones.”

He added, “Recent announcements on rents and the SAHP give providers the opportunity to make well-informed investment decisions, while maintaining a strong grip on financial risk.” This highlights the importance of strategic planning in the current financial climate.

What this means for landlords

For landlords and agents, the survey underscores the ongoing availability of funding to support both development and maintenance activities, despite rising costs. The increase in repairs and maintenance spending signals the need to prioritise upkeep to meet tenant expectations and regulatory standards.

With interest cover expected to tighten, landlords should continue to monitor their financial positions closely and plan investments prudently. The introduction of the SAHP offers new opportunities for development, but also requires careful consideration of funding and risk management strategies.

Regulatory Oversight and Sector Support

The RSH uses quarterly surveys to assess the financial health of private registered providers, following up where risks to liquidity or loan covenant compliance arise. This regulatory oversight helps ensure that providers remain viable and well-governed, safeguarding the delivery of social housing.

The regulator’s role includes promoting a sector that is efficient and financially sound, capable of delivering more and better social homes. This ongoing scrutiny benefits landlords by maintaining sector stability and encouraging best practices in governance and financial management.

Source: Based on reporting from the Regulator of Social Housing

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