The Regulator of Social Housing’s (RSH) 2025 Global Accounts of Private Registered Providers was published on 15th January, showing a social housing sector that is still delivering homes and investing heavily but doing so in a much tighter financial environment than in the past.
On the surface, the numbers look positive. Total income across the sector rose to £27.4bn, largely because rents increased in line with inflation. But higher income hasn’t brought greater financial comfort. Once housing providers have paid for the basic upkeep of homes on things like repairs, safety works, and maintenance, there is no longer enough money left to comfortably cover the interest on their borrowing. In practice, that means organisations are relying more on savings, asset sales, or additional borrowing just to balance the books.
Spending on existing homes continues to rise. A record £10bn was invested in repairs and maintenance, driven by overdue works, building safety requirements and early steps towards making homes more energy efficient. This investment is essential for residents and for the long-term condition of homes, but it also places sustained pressure on day-to-day finances.
New home delivery has held up better than many expected. The sector invested £14.2bn in new supply, delivering around 54,000 homes in the year. However, future plans suggest delivery may slow, showing how sensitive development is to higher interest rates, rising construction costs, and changes in regulation.
Overall financial strength remains significant. The value of housing assets increased to £218bn, but total debt also rose to £105bn as organisations continued to borrow in a higher cost environment. Scale and asset value remain major strengths, but exposure to financial risk is increasing.
Taken together, the picture is of a sector that is still investing in homes and communities, but with far less financial flexibility than before. The challenge ahead is not whether housing providers are willing to invest; it is whether the system gives them enough breathing space to do so sustainably.
Food for thought: How do we make sure essential public interest services can keep delivering when there is so little margin for error left in the system?