The Regulator of Social Housing has published updated technical guidance for the Value for Money (VFM) metrics that registered providers in England must report as part of their 2026 Annual Accounts. These metrics are essential for assessing providers’ efficiency, effectiveness, and financial health, supporting transparency and sector benchmarking.
Overview of the 2026 Value for Money Metrics Guidance
The 2026 technical note outlines the specific VFM metrics that private registered providers must calculate and report annually. These include seven key measures such as reinvestment percentage, new supply delivered, gearing, EBITDA MRI interest cover, headline social housing cost per unit, operating margin, and return on capital employed. The guidance clarifies how to derive these metrics from the Financial Viability Accounts (FVA) template and highlights minor updates to the FVA reporting lines, particularly the breakdown of turnover and expenditure by housing type.
Context and Impact for Providers
The VFM metrics are designed to enable providers to benchmark their performance against peers and demonstrate prudent use of resources. While the metrics remain unchanged from the previous year, providers should note the inclusion of capitalised major repairs grant in the EBITDA MRI interest cover calculation, ensuring grant funding is appropriately reflected. Amendments to accounting standards (FRS102 and the Housing SORP) effective from 2026 accounting periods may affect reporting for some providers, though most will first apply these changes in the year ending March 2027. Providers must ensure their reported figures align with their published financial statements and clarify any early adoption of new standards.
What this means for landlords
Although the guidance primarily targets registered providers of social housing, landlords and agents involved with such providers or managing similar portfolios should be aware of these reporting standards. The metrics provide insight into how efficiently social housing providers manage and invest in their properties, which can influence sector-wide standards and expectations. Understanding these measures can help landlords and agents engage more effectively with social housing partners and assess the financial health and value for money performance of organisations they work with.
What TLA members should consider
- Review the 2026 VFM metrics to understand how social housing providers report on investment, costs, and financial performance.
- Consider how changes to accounting standards and grant recognition might affect financial reporting and benchmarking within the sector.
- Ensure any engagement with registered providers or social housing partners takes account of these metrics to support transparency and informed decision-making.
TLA Training Academy
The Landlord Association offers comprehensive guidance and training to help landlords, letting agents, and property professionals navigate compliance and financial reporting requirements. Members can access resources tailored to improve understanding of sector standards and practical management.
Explore the Academy here: https://landlordassociation.org.uk/tla-academy/
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TLA update
The Landlord Association continues to enhance its support and resources for landlords, tenants, agents, and property professionals across the UK. Service providers interested in collaborating with TLA can express their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/
Source: www.gov.uk
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