Record Investment in Social Housing: A Step Towards Safer Homes
Social landlords in the UK have achieved unprecedented levels of investment aimed at ensuring homes are safe, warm, and of acceptable quality. According to a report from the Regulator of Social Housing (RSH), published on 15 January 2026, this investment has also supported the ongoing development of new housing projects.
Financial Overview: Repairs and New Developments
The financial assessment reveals a 13% rise in spending on repairs and maintenance, bringing the total to £10 billion for the fiscal year ending 31 March 2025. Within this amount, £3.9 billion was earmarked for capital improvements.
This trend of increased investment is expected to continue, with forecasts predicting an average outlay of £10.9 billion annually over the next five years. However, this projection may be influenced by several factors, including the availability of government grants for cladding replacement, the implications of Awaab’s Law, and discussions on new standards for decent homes and energy efficiency.
Commitment to New Housing
Despite facing economic challenges, the social housing sector remains committed to expanding its inventory, with landlords investing £14.2 billion in new developments. This effort resulted in the completion of 54,000 new social homes, a figure consistent with the previous year’s performance.
However, some social landlords anticipate delivering fewer homes than initially planned due to financial constraints. These expectations may change now that the government has announced a new ten-year affordable housing grant programme.
Financial Health of the Sector
The sector’s financial performance varies considerably among providers. A group of nineteen landlords, mainly operating in higher-cost regions like London and the South East, represents a substantial portion of the sector—42% in terms of units owned and 47% of turnover. Their higher expenditure on repairs and maintenance significantly influences the overall sector performance.
In terms of financing, the sector secured new facilities amounting to £12.3 billion, including refinancing options. As of March 2025, landlords reported undrawn financial facilities of £30.6 billion, enabling continued investment in both new and existing housing stock.
Liquidity and Operational Margins
Robust liquidity is evident in the sector; however, a decline in cash and short-term investments marked the fourth consecutive year of decrease, falling by 8% to £5.1 billion. Operating margins, while still on the lower end historically, experienced a slight improvement for the second straight year, reaching 17.3%.
The underlying surplus also saw an uptick, increasing from £1.6 billion in 2024 to £1.9 billion in 2025, driven partly by elevated rental income from social housing and boosted returns from the disposal of properties previously held for rent. The surplus from fixed asset sales soared by 27% to a record £1.3 billion.
Statements from the Regulator
Will Perry, Director of Strategy at the RSH, remarked on the essential nature of the recorded investments in repairs and maintenance, emphasising the need for efficient execution of safety and quality works. He noted that it is crucial for providers to enhance their financial resilience and capacity for future developments.
Perry also expressed optimism regarding ongoing investment in new homes, pointing to significant government funding, including a £39 billion grant for the Social and Affordable Homes Programme over the next decade. This financial support, along with capital for building safety, is expected to sustain the momentum in new housing developments.
Background
This report forms part of the ongoing assessment of the social housing landscape in the UK, which has been under scrutiny for its sustainability and the adequacy of housing supply. Recent government initiatives aim to address these challenges and to enhance affordability and quality in social housing.
Source: official statements, news agencies, and public reports.
https://www.gov.uk/government/news/regulator-of-social-housing-2025-global-accounts-published
