Affordable home ownership completions by RPs fall to six-year-low

Completions of homes for affordable home ownership (AHO) by registered providers in England have fallen to a six-year-low.

The latest quarterly survey of RPs by the Regulator of Social Housing shows AHO completions in April to June totalled 3,240, 38% down on the previous quarter.

Seasonal trends usually see lower completions in the first quarter of the financial year, however this year’s drop is particularly pronounced with the lowest quarterly total since 2020 when the market was disrupted by the Covid-19 pandemic. AHO sales decreased by 26% in the quarter to 3,337 units and remain below the three-year average.

Market sale completions also fell by 50% to their lowest level in more than decade with total income from asset sales falling from £2.6bn to £2.1bn month-on-month.

The survey findings, based on data from of the largest RPs, show spend on developing new homes fell from £3.4bn to £3.1bn quarter-on-quarter and from £13.6bn to £13.1bn on a 12-month basis.

However, total 12-month forecast development spend has increased from £15.1bn to £16.0 billion since March, as the sector gears up to deliver under the £39bn Social and Affordable Homes Programme.

The figures show the sector continues to invest more in improving existing stock. In the 12 months to June total repairs and maintenance spend was £9.7 billion; 6% higher than in the same period a year earlier. For the 12 months to June 2027 the sector has forecast expenditure to increase to £11.1 billion, up from its forecast of £10.7bn in March and an increase of 15% compared to actual spend in the year to June 2026

RSH said: “Repairs and maintenance costs have increased significantly in recent years due to increased focus on building safety and energy efficiency, and initial data from 30-year business plans recently submitted to the regulator suggest that these levels of investment will be maintained for the foreseeable future.”

The survey shows cash interest cover – which effectively measures the extent to which a provider’s operating cash can cover its interest payments –  will remain restricted, with projections showing this will be 73% in the year to June, including capitalised major repairs. A total of 113 of the 195 PRPs in the survey said performance will be below 100% over this period.

The survey shows cash on RP balance sheets will reduce by 16% in the quarter from £4.1bn in March to £3.4bn, and are expected to reduce further to £3.2bn with nearly three-quarters of (72%) respondents forecasting a net cash outflow.

Fixed asset sales – including bulk sales – to other providers increased 44% year-on-year, totalling £4.9bn with a further £4.9bn forecast for 12 months to June.

Will Perry, director of strategy at RSH, said:  “As the operating environment continues to evolve, landlords should ensure their plans adapt to emerging opportunities and changes in regulation.

“It is vital that landlords understand and actively manage any additional risks, identify potential liquidity and covenant pressures at an early stage, and maintain robust contingency plans to support their long-term financial resilience.”