Landlords spent £9.1bn on repairs and maintenance in the 12 months to June 2025, up from £8.2bn the previous year, according to the latest Q1 2025-26 survey from the Regulator of Social Housing (RSH).
Forecast spend for the next year was up by 3% to £10.3bn.
Development spend fell slightly to £13.6bn, down from £14.2bn the year before, but landlords continued to build new homes, with forecast development spend for the next year reported at £14.8bn.
Many landlords were still updating development plans and budgets after the June Spending Review.
Cash balances dropped to their lowest level in 12 years, but available liquidity stood at £33.5bn, which was enough to cover forecast costs on net interest, loan repayments and net development over the next year.
Investment in the sector remained strong, with £1.8bn in new finance arranged during the quarter – 84% of this from bank lending.
Cash interest cover (excluding sales) in the year to June was 81% and was expected to fall further, with a forecast of 67% for the year to June 2026.
Nearly 60% of providers expected interest cover below 100% in this period.
Will Perry, director of strategy at the RSH, said: “Landlords continue to invest significantly in new homes, and we know that they are looking to update their business plans in light of the substantial package of funding and other measures announced in the June Spending Review.
“The robust pipeline of private investment into the sector is essential for enabling landlords to both make important improvements to existing homes, as well as building new homes for the future.
“We remain committed to maintaining a financially robust sector and will take early action if we identify serious financial weakness.”
