2026 Sector Risk Profile report acknowledges ‘complex’ operating and economic environment
The Regulator of Social Housing (RSH) has warned landlords against viewing asset disposal as a long-term solution to improving financial capacity.
In its ‘Sector Risk Profile’ 2026 report, the regulator acknowledged that fixed asset sales can be part of providers’ strategic plans, for example to rationalise stock by focusing on a particular geographic area or tenure type or to fund future development.
However, it warned reliance on disposals to support day-to-day cashflows or meet essential costs “raises concerns about a landlord’s underlying viability”.
According to RSH, the sector expects £19.5bn in receipts over the next five years, with £7.2bn of associated surpluses accounting for 40% of total surplus. If those receipts don’t materialise, individual providers risk liquidity pressures or breaching loan covenants, it warned.
The regulator also said large-scale disposals or transfers present several reputational risks, including reduced social housing impacting the sector’s relationship with tenants and local authorities.
RSH’s latest report highlighted the increasingly complex operating environment landlords face as they balance competing priorities such as improving the quality of existing homes while aiming to deliver new affordable housing and meeting shifting regulatory requirements. These challenges are compounded by a “difficult” economic environment, it added.
RSH chief executive Jonathan Walters said: “There are no easy choices. Landlords must carefully balance competing priorities, manage risks effectively and ensure their organisations remain financially resilient.
“Strong governance, a clear strategic direction and the need to take a longer-term view are essential. Boards and councillors must be ready to make evidence-based decisions that support their fundamental purpose of delivering more and better social homes for current and future tenants.”
The report also noted the importance of managing cyber security, data protection and operation resilience risks as organisations become increasingly reliant on technology.
Its publication today (Thursday) follows recent cyber attacks at the Housing Ombudsman Service and G15 landlord L&Q.
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