Cash interest cover among social housing landlords fell to 59% in the quarter to June 2026, despite £4.3bn raised in new funding.
The figure, published by the Regulator of Social Housing (RSH) in its quarterly survey of private registered providers’ financial health for the period 1 April to 30 June 2026, marks a further reduction on previous quarters.
The regulator said the fall was driven mainly by annual costs paid during the quarter, and that recovery in margins and interest cover continues to be slower than previously forecast.
The £4.3bn raised in the quarter included £2.2bn of bank lending, which RSH said showed landlords remained able to access the funding needed to support investment in new and existing homes.
Spending on repairs and maintenance reached £2.4bn in the quarter, taking the 12-month total to £9.7bn. Forecast spend on repairs and maintenance over the next 12 months is expected to reach £11.1bn.
Investment in new homes saw a slight reduction in the quarter, falling to £3.1bn. However, the 12-month forecast for development rose to £16bn, including £5.1bn of uncommitted development – a 16% increase on the previous forecast and the highest level in three years.
RSH pointed to the Social and Affordable Homes Programme, rent convergence and targeted building safety funding as measures intended to support long-term investment and provide landlords with greater regulatory certainty. The regulator said it would continue to monitor financial performance and engage with the financially weakest providers to assess how they are managing their financial risk.
Will Perry, director of strategy at RSH, said: “As the operating environment continues to evolve, landlords should ensure their plans adapt to emerging opportunities and changes in regulation.
“It is vital that landlords understand and actively manage any additional risks, identify potential liquidity and covenant pressures at an early stage, and maintain robust contingency plans to support their long-term financial resilience.”
Image credit: Pressmaster/Shutterstock
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