RPs increase development forecasts for fourth consecutive quarter as sector gears up for £39bn SAHP

Housing associations have increased their 12-month development forecasts for the fourth successive quarter, according to the Regulator of Social Housing (RSH).

The latest RSH quarterly survey shows providers are expecting to spend £10.7bn on development over 12 months to 31 March, up from £10.6bn for the previous quarter.

Forecasts for development grant have increased by 11% to £3bn, with a number of providers revising forecasts to reflect their bids under the new Social and Affordable Homes Programme. Providers’ bids are being assessed by Homes England and the Greater London Authority.

The survey of 197 providers also showed development spend in January to March is up on previous years, with £3.5bn spent compared to £3.1bn in the same period in both 2024 and 2025.

The figures show however that throughout 2025 as a whole spend on development was £13.4bn, down on the £13.6bn for the previous year.

Providers spend on repairs and maintenance increased 5%, from £9bn to £9.5bn over the same period. The survey showed that forecast interest cover will remain low at 67% over the next 12 months.

The survey findings also show fixed asset sales increased from £2.9bn to £4.2bn year-on-year - the highest figure since RSH started collecting the data in 2015.

Will Perry, director of strategy at RSH, said: ”We will maintain close engagement with organisations showing signs of financial pressure, particularly where cashflows rely on asset sales for loan covenant compliance. Where necessary, we will reflect our findings in regulatory judgements to ensure transparency and accountability.”

The RSH’s quarterly survey report is based on responses from 197 private registered providers who own or manage more than 1,000 homes.