The Regulator of Social Housing (RSH) has published its latest ‘Value for Money’ report, which showed that housing associations have reached record levels of reinvestment in both new and existing homes.
Reinvestment rose to £14.6bn from £12.5bn, the highest since tracking began in 2018.
Despite rising costs, the sector delivered 49,287 new social homes over the year to 31st March 2024, the most since 2021.
About 10% of providers develop nearly half (45%) of these new homes.
Providers with tall buildings faced higher costs, reporting £9,343 per unit, compared to £4,812 for those mainly with houses or bungalows.
Additionally, London’s reinvestment in existing homes increased by 13% but reduced investment in new developments by 8%.
Will Perry, director of strategy at RSH, said: “The sector as a whole is proving resilient at grappling with competing demands on their resources, investing record amounts on new and existing homes, though inflation and high levels of repairs works are driving up unit costs.
“This year, we have also carried out new and expanded analysis which allows us to understand in greater detail some of the structural factors that can impact on value for money.”
Perry added: “This supports our ongoing scrutiny and regulation of the sector, especially as pressures intensify, and provides important insight for landlords as they consider what drives their businesses.
“It is crucial that landlords challenge themselves on their efficiency so they can continue to build more homes and deliver better services for people who need them.”
