Regulator forecasts record spend by social landlords on existing social homes in 2025/26 alongside substantial investment in new homes 

Total spend on repairs and maintenance increased 13% to reach £10bn in the year, of which £3.9bn was capitalised

Investment in existing homes is forecast to be sustained at an average of £10.9bn per annum over the next five years.

RSH warned, however, that investment plans may be affected by the availability of grant funding for cladding replacement, the implementation of Awaab’s Law and the consultations on a new Decent Homes and Minimum Energy Efficiency Standard.

The 2025 Global Accounts, which provides a financial analysis of the 200 large private registered provider groups holding more than 96% of the sector’s stock, meanwhile said some £14.2bn was allocated during the year to obtaining 54,000 new social homes.

RSH said: “Financial constraints in some major providers mean some social landlords expect to deliver fewer new homes than previously forecast. It is likely these projections could change as they were made before the government’s commitment to a new ten-year affordable housing grant programme.”

The 2025 Global Accounts suggested that the sector continues to demonstrate “robust liquidity”.

Operating margins, whilst still at historically low levels, showed a marginal improvement for the second consecutive year to reach 17.3%.

The surplus on fixed asset sales increased by 27% to £1.3bn in 2025, the highest level on record, as some landlords rationalised their stock holdings through the strategic disposal of properties.

Will Perry, Director of Strategy at RSH, said: “As expected, record investment in repairs and maintenance continues to affect margins as important safety and quality works are carried out.  It is essential that providers ensure these works are completed efficiently and effectively, to improve financial resilience and increase development capacity.

“It is encouraging that most providers also continue to invest significantly in new homes.  Major government interventions such as the £39bn grant for the Social and Affordable Homes Programme for the next ten years and capital funding for building safety should sustain new development into the future. 

“While it is important to mention there are some signs of improvement in margins, we will continue to closely monitor landlords’ financial viability to ensure tenants and homes are protected.” 

Harry Rodd