Social housing landlords in England are set to invest record amounts in repairs while also constructing new homes, as indicated by the 2026 financial forecasts for private registered providers. The data, published today by the Regulator of Social Housing (RSH), suggests some anticipated stabilisation in the sector's financial health.
Despite this, landlords are navigating significant financial pressures, balancing the need for more and better social homes. Will Perry, RSH Director of Strategy, noted the encouraging plans for record repair investments alongside ambitions for more affordable homes, emphasising the careful management required for these trade-offs.
The Financial Forecast Returns (FFR) data shows aggregate interest cover over the first five years of plans is comparable to the last set of forecasts, reversing a previous declining trend. This is attributed to a slower increase in repairs and maintenance expenditure combined with increased income growth.
Development plans show a modest increase over the first five years, with a more substantial rise over the ten-year term of the Social and Affordable Homes Programme (SAHP). To fund these initiatives, £54.7bn of new borrowing and £16.3bn in additional grants are forecast over the initial five-year period.
The RSH highlighted that landlords' financial plans were prepared in early 2026 and do not fully account for the impact of ongoing global events, changes to inflation and interest rates, or the outcomes of SAHP bid submissions, which are likely to influence future submissions.