Housing associations’ median interest cover fell by 54 percentage points to 128% compared to 2021, marking its lowest level since emerging from the financial recession in 2010.

The RSH noted that the drop in interest cover reflects the economic and political backdrop seen over the past couple of years. 

Housing associations’ current interest cover was calculated based on Earnings Before Interest, Tax, Depreciation, Amortisation, Major Repairs Included (EBITDA-MRI). 

This comes in the context of £4,586 rise in the average cost incurred per social housing unit, an increase of 14% compared to the previous year. The rise has been ascribed to high inflation, which rose to 10.1% in the period to March 2023, as well as supply chain pressures.