Repairs and maintenance spending by social landlords up 13% in 2025, finds RSH
Its 2025 Global Accounts found that social landlords spent a record £10bn on repairs and maintenance, up 13%, with £3.9bn of this capitalised.
The Regulator of Social Housing (RSH) published its 2025 Global Accounts today, 15th January, which found that social landlords spent a record £10bn on repairs and maintenance, up 13%, with £3.9bn of this capitalised.
Investment in existing homes is expected to stay high, averaging £10.9bn per year over the next five years.
According to RSH, future investment could change depending on grant funding for cladding replacement, the rules under Awaab’s Law and new standards on homes and energy efficiency.
Data showed that landlords put £14.2bn into new development, delivering 54,000 new social homes, roughly the same as last year.
Some larger landlords expect to deliver fewer new homes due to financial pressure, but projections were made before the Government introduced a new 10-year Affordable Housing Grant programme.
Performance varied among providers.
19 landlords, mainly operating in London and the South East, accounted for 42% of homes and 47% of turnover.
Their higher costs for repairs and maintenance had a big impact on the sector’s overall results.
Providers agreed £12.3bn in new facilities, including refinancing, and had £30.6bn in undrawn facilities by March 2025, giving them scope to keep investing in homes.
The sector remained liquid, but cash and short-term investments fell for the fourth year in a row, down 8% to £5.1bn, due to weaker operating cashflows and high investment.
Operating margins improved slightly for the second year, reaching 17.3%.
The underlying surplus, not including gains on business combinations, rose from £1.6bn in 2024 to £1.9bn in 2025.
This was helped by higher social housing letting rental income and a rise in the surplus from selling homes previously held for rent.
The surplus on fixed asset sales reached £1.3bn, up 27% and the highest level yet, as some landlords sold properties to streamline their portfolios.
Will Perry, Director of Strategy at the 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.”
Perry added: “While it’s 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.”
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