Housing associations’ reinvestment hits record £14.8bn, says RSH

Housing associations’ reinvestment has reached a record level, according to the Regulator of Social Housing (RSH).

The regulator published its annual value for money report today, which showed that £14.8bn of capital was invested into new and existing homes in 2024/25. 

Capital reinvestment into existing homes increased 15% to £3.8bn, while reinvestment into new homes fell 4% to £11bn.

The high levels of overall investment came despite funding challenges, with cost pressures dampening overall operating margins. These stood at 17.4%, which was below the long-term average of 18.5%.

Financial pressures in the sector were not evenly distributed, according to the report, with larger landlords and those based in London facing more acute challenges.

The weighted sector average EBITDA-MRI interest cover fell to 87%, although most were in a stronger position than this, with the interest cover of the median provider standing at 113%.

“While these are challenging times for some landlords, there is also greater certainty around policy for the sector to actively plan for the longer term,” said Will Perry, director of strategy at RSH. 

“Boards must provide robust challenge where landlords are not making the most effective use of their resources to achieve the strategic objectives of the organisation. 

“This requires a clear understanding of what the organisation is intending to achieve, in both serving existing tenants and developing new homes, and how it maximises its efficiency and effectiveness in doing so.”