The Regulator of Social Housing (RSH) has released its latest quarterly survey covering the financial health of private registered providers for the period from October to December 2025. The report highlights continued robust investment in the social housing sector, with landlords maintaining access to substantial funding for both new developments and existing properties.

Strong Investment and Funding Access

During the final quarter of 2025, over £4 billion worth of funding facilities were agreed, demonstrating the sector’s ability to secure necessary capital. Net of loan repayments, drawn debt increased by £2.7 billion, contributing to a 17% rise in cash balances, which reached £4.2 billion by the end of December. However, this elevated cash position is expected to decrease over the next 12 months as funds are deployed.

Rising Repair and Maintenance Expenditure

Spending on repairs and maintenance continues to climb, with £2.4 billion spent in the quarter alone. Over the 12 months to December 2025, total expenditure on repairs and maintenance amounted to £9.4 billion, marking a 7% increase compared to the previous year. This trend reflects ongoing efforts to maintain and improve existing housing stock amid rising costs.

Development Spend and Future Forecasts

Investment in new home developments saw a slight reduction in quarterly spend, falling to £3.7 billion. Despite this, the 12-month development forecast has increased marginally. It is important to note that projections for the coming year do not yet include 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 levels once fully incorporated into forecasts.

Financial Viability and Interest Cover

Cash interest cover, excluding sales, remained steady at 78% for the year ending December 2025. Looking ahead, the sector’s forecast interest cover is projected to be 67% over the next year, indicating continued financial constraints. This metric is a key indicator of the sector’s ability to meet interest payments from operating cash flows, reflecting ongoing pressures on financial viability.

Insights from the Regulator

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.”

What this means for landlords

For landlords and agents, the report underscores the importance of balancing investment in new developments with the upkeep of existing properties. The sustained access to funding is encouraging, but the forecasted reduction in cash reserves and constrained interest cover suggest that financial prudence remains essential.

Landlords should also be aware of the evolving landscape with the introduction of the SAHP, which may offer new opportunities for development funding. Staying informed about regulatory updates and funding programmes will be critical for making strategic investment decisions in the coming years.

About the Survey

The quarterly survey is based on financial regulatory returns from 199 private registered providers, including housing associations and other private entities managing more than 1,000 homes. The RSH monitors these providers closely, assessing liquidity risks and loan covenant compliance to ensure the sector remains financially viable and well-governed.

The regulator’s role is to promote a sustainable social housing sector capable of delivering more and better homes, intervening where standards are not met to protect tenants and public investment.

Source: Based on reporting from the Regulator of Social Housing

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