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The Regulator of Social Housing has today (27 February 2025) published the results of its鈥痩atest quarterly survey of private registered providers鈥� financial health. The report covers the period 1 October 2024 to 31 December 2024.

Landlords invested 拢3.9 billion on building and acquiring new homes (up from 拢3.2 billion in the previous quarter), though the year to December 2024鈥檚 investment of 拢13.7 billion was 拢0.9 billion lower than the year to December 2023. 聽

Social landlords are making vital improvements to tenants鈥� homes and building new homes for the future.聽 They continue to invest record amounts in new and existing stock, though there are indications that development spend has peaked.聽聽聽聽

Spend on repairs and maintenance totalled 拢2.3 billion in the quarter. In the year to December a total of 拢8.7 billion was spent, with a further 拢9.8 billion forecast for the next 12 months.聽

Over the next year, they plan to spend a further 拢14.8 billion on development, only 拢10.5 billion of which is currently committed.聽 This is a reduction from 拢15.6 billion of planned spend and 拢10.9 billion of committed spend forecast in the previous quarter, meaning forecasts are now at the lowest amount since the start of the pandemic.聽

Lending to the sector remains robust, with 拢2.6 billion of new finance arranged in the quarter.聽聽

However, a high level of debt drawdowns resulted in a decrease in undrawn available facilities and cash balances remain at historically low levels.聽聽

Total cash and undrawn facilities of 拢33.4 billion are still enough to cover forecast interest costs, loan repayments and development for the next year.聽聽

Aggregate cash interest cover (excluding sales) stood at 82% for the 12 months to December 2024 and forecasts show a further deterioration is expected.聽聽

Performance varies among individual landlords. Some of the lowest levels of interest cover are driven by high levels of spend on existing stock by some large providers.聽

RSH鈥痗ontinues to monitor and engage with landlords, particularly those that have a reliance on sales to support their cashflows.聽

Will Perry, Director of Strategy at鈥�RSH, said:聽

鈥淪ocial landlords continue to face pressures on multiple fronts.聽

鈥淭he sector is building substantial numbers of new homes for the future,聽 with actual and forecast development spend close to pre-pandemic levels.聽

鈥淭hat said, there has been a notable drop in forecast development spend as landlords continue to invest record amounts on existing stock, including on vital work to improve fire safety and damp and mould.聽聽

鈥淥ur regulation is key for investor confidence and we will continue to scrutinise the sector鈥檚 financial performance and its ability to manage risk through these surveys, alongside our inspections and stability check programme.鈥澛�

Notes to editors聽

1. The report is based on the financial regulatory returns from 203 private registered providers (housing associations and other聽 private registered providers, including for-profits), who own or manage more than 1,000 homes.聽

2. Through its annual stability checks,鈥�RSH鈥痗onsiders whether each provider鈥檚 current viability grade is consistent with the information contained in their regulatory returns.鈥�RSH鈥痜ocuses on indicators of financial robustness and evidence of any significant changes in risk profile.聽

3. RSH鈥痯romotes 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.

4. For general enquiries email聽[email protected]. For media enquiries聽please see our聽Media Enquiries听辫补驳别.