Investment in the sector remains robust, with landlords able to access the funding needed to support investment in new and existing homes
The Regulator of Social Housing has published the results of its quarterly survey of private registered providers' financial health, covering the period from 1 January to 31 March 2026 today (Wednesday 3 June 2026).
Investment in the sector remains robust, with landlords able to access the funding needed to support investment in new and existing homes including raising £2.7 billion worth of bank lending in the quarter.
Investment in existing homes remained strong, with spending on repairs and maintenance reaching £2.6 billion in the quarter. This robust quarterly performance has driven total expenditure over the past 12 months to £9.5 billion, marking a 5% increase on the previous year. The sustained growth reflects ongoing commitment to maintaining and improving existing homes, despite broader economic challenges.
While investment in new homes saw a slight reduction in quarterly development spend of £3.5 billion, total 12-month forecast development increased to £15.1 billion. This includes £4.4 billion relating to uncommitted development, which saw a 7% increase at the highest level in 18 months.
Cash interest cover (excluding sales) stood at 87% in the quarter to March 2026, compared to 68% in the quarter to December and is expected to remain restricted, with an estimated 67% forecast for the year to March 2027.
59 providers (30%) anticipate reporting an impairment charge in their 2025/26 accounts. This compares to 75 (38%) in 2024/25 and 66 (33%) in 2023/24.
The total anticipated impairment charge is £375 million, of which £257 million relates to social housing assets.
Will Perry, Director of Strategy at RSH, said:
We will continue to actively monitor treasury management and exposure to interest rate risks across the sector. It is vital that providers always maintain strong liquidity and secure funding.
We will maintain close engagement with organisations showing signs of financial pressure, particularly where cashflows rely on asset sales for loan covenant compliance. Where necessary, we will reflect our findings in regulatory judgements to ensure transparency and accountability.
Notes
The report is based on the financial regulatory returns from 197 private registered providers (housing associations and other private registered providers, including for-profits), who own or manage more than 1,000 homes.
RSH reviews each private registered provider's quarterly survey. It considers a range of indicators and follows up with the PRP where a risk to 12-month liquidity is identified, or where there is a risk to loan covenant compliance. Further assurance is sought where there is increasing exposure to risks from activities carried out within non-registered entities. Findings will be reflected in regulatory judgements where appropriate.
RSH promotes a viable, efficient and well-governed social housing sector able to deliver more and better social homes. It does this by setting standards and carrying out robust regulation focusing on driving improvement in social landlords, including local authorities, and ensuring that housing associations are well-governed, financially viable and offer value for money. It takes appropriate action if the outcomes of the standards are not being delivered.
