Social landlords in England plan to invest record amounts in repairs while also building new homes, according to Regulator of Social Housing (RSH) data.
The 2026 financial forecasts of private registered providers, published today, indicate some stabilisation in the sector’s financial position. They also show landlords face significant financial pressures from the trade-off between more and better social homes.
RSH director of strategy Will Perry said it was encouraging to see landlords preparing to invest record amounts in repairs while maintaining their ambition to build more affordable homes.
He said: “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.
“Our job is to make sure landlords are alert to the risks and have the transparency, resilience and strategic focus needed to navigate them while delivering for tenants.”
This year’s forecast data showed aggregate interest cover over the first five years of plans was comparable to that in the last set of forecasts. The metric had previously declined in each successive year.
The regulator said the key factors were a slowing in the rate of increase in repairs and maintenance expenditure, combined with increased income growth.
There has been a modest increase in development plans over the first five years, reversing the trend seen in recent forecasts. A more substantial increase is seen over the 10-year term of the Social and Affordable Homes Programme (SAHP), reflecting bids for grant being made when the plans were submitted.
To fund these plans, landlords forecast a greater increase in debt than in recent years. The data shows £54.7bn of new borrowing is required over the first five years of plans, alongside additional grant of £16.3bn over the same period.
There remains substantial variation within the sector, with the largest providers, those with more than 40,000 homes, generally having a tighter financial position.
Landlords’ plans were prepared in early 2026, so do not fully reflect the financial impact of ongoing global events, consequential changes to inflation and interest rates, or the outcomes of SAHP bid submissions. All of these are likely to influence the next set of submissions.
Image credit: Andrey_Popov/Shutterstock
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