Social Housing Landlords Set to Make Historic Investments in Repairs and New Homes

Landlords of social housing in England are set to make unprecedented investments in property repairs while simultaneously constructing new homes, as revealed in the financial forecasts for 2026 from private registered providers. The insights, released by the Regulator of Social Housing on 6 October 2026, suggest a slight stabilisation in the sector’s financial landscape, although significant pressures remain as landlords grapple with the balance between enhancing existing properties and increasing the overall supply of social housing.

Promising Investments in Repairs and New Homes

Will Perry, Director of Strategy at the Regulator of Social Housing, expressed optimism regarding the landlords’ commitment to investing record sums into repairs while striving to elevate the availability of affordable housing. He stated, “The sector’s long-term ambition is clear: more investment in existing homes, more new homes, and more for social rent. These are not easy trade-offs, and the financial pressures need to be managed really carefully.”

Perry further emphasised the necessity for landlords to remain vigilant about potential risks, ensuring they possess the transparency, resilience, and strategic acumen required to address these challenges while effectively serving their tenants.

Financial Forecasts Indicate Stabilisation

The Financial Forecast Returns (FFR) for this year indicated that the aggregate interest cover over the initial five years of planning is comparable to figures from the previous forecasts, reversing a trend of decline observed in prior years. This positive shift is attributed to a deceleration in the rise of repairs and maintenance costs, coupled with an increase in income growth.

Moreover, a modest uptick in development plans has been noted over the first five years, contrasting previous forecasts that indicated a downward trend. The ten-year outlook for the Social and Affordable Homes Programme (SAHP) demonstrates a more pronounced increase, reflecting the bids for grants submitted during the planning phase.

Increased Borrowing to Support Ambitious Plans

To finance these initiatives, an increase in debt is anticipated, with £54.7 billion in new borrowing needed over the first five years, alongside an additional forecast of £16.3 billion in grants for the same timeframe. However, considerable discrepancies persist within the sector, as larger providers managing over 40,000 homes generally exhibit a tighter financial position.

It is important to note that the financial plans prepared by landlords were completed early in 2026, meaning they do not fully account for the ongoing impact of global events, the resulting shifts in inflation and interest rates, or the outcomes of SAHP bid submissions—factors that are expected to significantly influence future forecasts.

Availability of Financial Data

The FFR data, previously integrated with the Global Accounts published in January, has been released this year as an independent report to provide stakeholders with timely access to crucial information. This publication offers an overview of the financial forecasts submitted by providers managing or owning 1,000 or more homes. Both the report and a corresponding dataset, which includes aggregated data for the entire sector and various subsets of providers, can be found on the website.

This marks the inaugural release of the aggregate financial forecasts dataset. However, it is important to note that the report does not encompass data related to the 2025/26 financial year, which is expected to be published in the ‘Global Accounts’ report in January 2027.

For media inquiries, please contact Vicky.Moore@RSH.gov.uk or Christian.Cosby@RSH.gov.uk. General inquiries can be directed to enquiries@RSH.gov.uk.