Social housing providers across England are planning to invest unprecedented amounts in repairing and maintaining existing homes while continuing to deliver new affordable housing, according to the latest financial forecasts published by the Regulator of Social Housing.
The 2026 Financial Forecast Returns reveal signs of increasing stability across the sector, although landlords continue to face significant financial challenges as they balance investment in existing properties with the need to increase housing supply.
The forecasts indicate that providers remain committed to improving the quality of existing homes while also expanding the availability of affordable and social rented housing.
RSH Director of Strategy Will Perry welcomed the sector's long-term commitment to both priorities. He said:
“The sector’s long-term ambition is clear: more investment in existing homes, more new homes and more for social rent. These are not easy trade-offs, and the financial pressures need to be managed really carefully.
“Our job is to make sure landlords are alert to the risks and have the transparency, resilience and strategic focus needed to navigate them while delivering for tenants.”
One of the key findings from this year's return is that aggregate interest cover across the first five years of providers' business plans remains broadly consistent with previous forecasts. This marks a significant shift after several years of steady decline in the metric.
The improvement has been driven largely by a slower rate of growth in repairs and maintenance spending combined with stronger income growth across the sector.
The forecasts also demonstrate renewed confidence in development activity. Planned housing development over the next five years has increased modestly, reversing a downward trend seen in recent submissions.
Over a ten-year period, development ambitions are considerably higher, reflecting bids made under the Social and Affordable Homes Programme (SAHP) at the time providers submitted their plans.
Meeting these ambitions will require substantial investment.
The forecasts show that social housing providers expect to take on £54.7 billion in new borrowing over the next five years, alongside £16.3 billion in additional grant funding to support development programmes.
While the overall picture is positive, financial pressures remain unevenly distributed. The largest housing associations, particularly those managing more than 40,000 homes, continue to face the most constrained financial positions.
The RSH has cautioned that the financial plans were prepared during the early part of 2026 and therefore do not fully capture the potential impact of ongoing global economic developments.
Factors including inflation, interest rate movements and the eventual outcomes of Social and Affordable Homes Programme funding bids are likely to influence future financial forecasts and investment decisions across the sector.
Despite these uncertainties, the latest data suggests social housing landlords remain determined to deliver better homes, increased maintenance standards and a steady pipeline of affordable housing for communities across England.
Image credit: iStock
