Global accounts show record investment in social housing repairs
The report provides a financial overview of private registered providers for the year up to 31 March 2023.
The Regulator of Social Housing has today (Thursday 14 December 2023) published its Global accounts for 2023. The report provides a financial overview of private registered providers for the year up to 31 March 2023.
Providers continued to invest significantly in existing homes to tackle issues like damp and mould, building safety and improving energy efficiency. Providers made record investment in repairs and maintenance, spending £7.7 billion over the year (20% more than in 2022).
Providers also continued to build much-needed new social homes for the future. Investment in new supply increased by 11% to reach £13.7 billion. The number of new social homes built in the year increased to 53,000 (7% higher than last year).
Providers faced significant economic challenges, including higher inflation and borrowing costs. This led to the sector being stretched and providers’ financial resilience being tested. These trends have continued into the current financial year.
As a result of higher investment spend and challenging conditions in the wider economy, providers’ interest cover continued to fall. Aggregate interest cover (excluding all sales) stood at 103%, the lowest since 2010. Interest cover has continued to fall in the current financial year.
RSH has assurance that the sector remains robust, but individual providers have less financial headroom and their capacity to absorb downside risk is reduced. This is reflected in RSH’s judgements, with the majority of providers now graded at V2 for financial viability.
Overall the sector continues to have strong liquidity and continued to attract private investment. Including refinancing, the sector agreed new facilities of £9.9 billion in the year, increasing total available undrawn facilities to £30.3 billion. Providers remain committed to future investment, with record spend on existing homes forecast again for the next year.
Will Perry, Director of Strategy at RSH, said:
Social housing providers are grappling with a range of major external economic pressures. At the same time, they are spending record amounts on improving their tenants’ homes and fixing problems like damp and mould.
Boards must remain clear-sighted about financial risks, and deploy appropriate mitigations, while building more and better social homes for people who need them.
The annual publication is available on the Global accounts page.
Notes to editors
- The annual Global accounts report is based on an aggregation of the financial statements of 202 large provider groups which own or manage at least 1,000 social homes, together representing more than 95% of the sector’s stock.
- The report covers the period from 1 April 2022 to 31 March 2023. It includes an analysis of providers’ financial forecasts in section 5 ‘Annex – Financial Forecasts’.
- RSH promotes a viable, efficient and well-governed social housing sector able to deliver and maintain homes of appropriate quality that meet a range of needs. It does this by undertaking robust economic regulation focusing on governance, financial viability and value for money that maintains lender confidence and protects the taxpayer. It also sets consumer standards and may take action if these standards are breached. RSH’s remit on consumer issues is expanding and from April 2024 it will begin carrying out regulatory inspections of social landlords.
- For press office contact details, see RSH’s media enquiries page. For general queries, please email enquiries@rsh.gov.uk or call 0300 124 5225.