Press release

RSH publishes 2022 Global accounts

Social housing providers continued to be financially healthy in 2021-22 but wider economic challenges started to impact on their finances

The Regulator of Social Housing has today (10 January 2023) published its 2022 Global Accounts, which provide a financial overview of private registered providers of social housing for the year up to 31 March 2022. The sector had strong liquidity and continued to secure new finance in the year. However, record levels of spend on existing stock resulted in lower operating margins and levels of interest cover. The economic backdrop has since become significantly more challenging with higher inflation, higher interest rates and a softening housing market. These trends have continued into the current financial year.

The sector had strong aggregate liquidity in 2022 and remained attractive to investors. £12.5 billion in new facilities were agreed in the year, with £7.4 billion coming from capital markets.

Providers’ investment in existing homes increased to record levels, with total spend on repairs and maintenance reaching £6.5 billion. This was 20% higher than the previous year and significantly above pre-pandemic levels. As a result of this high spend on existing homes the aggregate operating margin fell to 19% (from 22% in 2021) and interest cover (including all spend on major repairs) fell to 128% (from 151% in 2021). Both figures reflect the lowest level reported for several years. Providers’ underlying surplus, also fell (£2.4bn in 2022 compared to £2.6 billion in 2021).

Providers invested a total of £12.3 billion in new homes – a 12% increase on 2021 – and completed 49,000 new social homes (9,000 more than in 2021).

Providers remain committed to future investment, with record spend on existing homes forecast for 2022-23. In the context of significant ongoing economic uncertainty, the regulator expects providers to monitor their risks closely, and RSH will engage with providers when it has concerns about their financial viability.

Jonathan Walters, Deputy Chief Executive of RSH, said

Social housing providers maintained their strong liquidity in 2021-22, attracted new finance, and continued to invest in the homes they provide. However, wider economic pressures that were starting to impact their finances have now become serious challenges.

Providers need to continue taking a strategic approach to managing economic risks and focus on their fundamental objectives of investing in new social homes, and providing safe, well-maintained homes for their tenants.

The annual publication is available on the Global Accounts page.

Notes to editors

  1. The annual Global Accounts report is based on an aggregation of the financial statements of the 204 private registered providers of social housing who own or manage at least 1,000 homes (together representing more than 95% of the sector’s stock).

  2. The Global Accounts cover the period from 1 April 2021 to 31 March 2022. The report includes an analysis of providers’ financial forecasts (in section 5: Annex – Financial Forecasts).

  3. 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 and there is a significant risk of serious detriment to tenants or potential tenants.

  4. For press office contact details, see our Media enquiries page. For general queries, please email enquiries@rsh.gov.uk or call 0300 124 5225.

Updates to this page

Published 10 January 2023