Regulator of Social Housing calls for “strong strategic leadership” from boards and councillors amid competing priorities

The call comes from RSH’s Sector Risk Profile for 2026, which highlights an increasingly complex operating environment for landlords as they work to improve the quality, safety and energy efficiency of existing homes while helping to address significant demand for new affordable housing.

The report warns that further substantial investment will be required to meet building safety requirements, improve stock condition and adapt to requirements of Awaab’s Law, the Decent Homes Standard and Minimum Energy Efficiency Standards (MEES).

“At the same time, social landlords are expected to play a key role in increasing supply of affordable homes. For some organisations this presents new development challenges, while others face decisions about how to expand delivery sustainably and manage associate risks including innovative financing models,” RSH said.

These pressures are being compounded by a difficult economic environment, it added.

The Sector Risk Profile warned that many landlords continue to operate with historically low levels of interest cover and face increased borrowing costs, refinancing pressures and ongoing inflationary risks.

The RSH report stressed that landlords should focus on achieving value for money and operating as efficiently as possible to maximise their capacity to invest.

The report also advised that disposing of existing stock in an attempt to free up resources can reduce the availability of social homes and is not a long-term solution.

RSH Chief Executive Jonathan Walters said: “Social landlords are operating in a challenging and fast-changing environment. They must continue investing in existing homes to ensure tenants have safe, decent and well-managed homes, while also helping to deliver the new social housing the country needs.

“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.”

Harry Rodd