LONDON, Nov. 20 -- The government of the United Kingdom issued the following news:

Investmentin existing homescontinues to rise,with landlordsspending £9.3billion on repairs and maintenance over the 12 months tillSeptember2025,10% higher than the £8.4 billioninvestedin the previous year. Forecast 12-month spend has also increasedslightlyfrom£10.3 billionto £10.4 billion.  

Althoughthe12months to September saw£13.2bn spent on development(compared to £13.7 billion the previous year), forecast development for the next year has increased slightly to £14.9 billion, in part due to underspends in the current quarter being re-profiledinto future periods.

Though cash balancesremainat historically low levels,total available liquidity (£34.5 billion)issufficient to cover forecast expenditure on net interest costs, loanrepaymentsand net developmentfor the next year.

Investment in the sectorremainsstrong, with capital market issuances being at the highest level in four years.

Cash interest cover (excluding sales) in the year to September dropped to78%andis expected to remain constrained,with the sector's forecast interest cover projected tototal67%over the next year.

Will Perry, Director of Strategy at RSH, said:  "While ongoing spending pressures continue toimpactfinancial performance,the sectorremainsresilient andliquidityisstrong.

"Many landlords are deliveringthedual ambition of more and better homes, in part thanks to the robust pipeline of private investment into the sector.

"Though trade-offswill beinevitable,manylandlords are looking torevisit development projectionsfollowing major funding announcements for the sector in recent months."

Notes to editors 

*

The report is based on the financial regulatory returns from 198 private registered providers (housing associations and other private registered providers, including for-profits), who own or manage more than 1,000 homes.   

*

The regulator reviews eachprivate registered provider'squarterly survey. It considers a range of indicators and follows up with the PRP where a risk to 12-month liquidity isidentified, or where there is a risk to loan covenant compliance. Further assurance issoughtwhere there is increasing exposure to risks from activities carried out within non-registered entities. Findings will be reflected in regulatory judgements whereappropriate.

*

RSH promotesa viable,efficientand well-governed social housing sector able to deliver more and better social homes. It does this by setting standards and carrying out robust regulation focusing on driving improvement in social landlords, including local authorities, and ensuring that housing associations are well-governed, financiallyviableand offer value for money. It takesappropriate actionif the outcomes of the standards are not being delivered.

*

For general enquiries, emailenquiries@rsh.gov.uk. For media enquiries please see ourmedia enquiriespage.

Disclaimer: Curated by HT Syndication.