Housing associations continue to reinvest operating surplus into new and existing homes, RSH report shows

RSH publishes the Value for Money metrics so boards and other stakeholders can assess how each housing association is performing against its peers

The Regulator of Social Housing has today (15 February 2024) published its value for money metrics and reporting for 2023. The report sets out how much housing associations invested in new and existing homes in the last financial year, and highlights the importance of boards making the best use of their resources.

Despite the economic challenges they faced in the year, housing associations continued to reinvest their operating surplus to improve existing homes and build new ones.

The report shows that in 2023 housing associations:

  • Invested £12.5 billion in new and existing homes (16% more than the previous year)
  • Delivered over 48,000 new social homes (up by 7%)
  • Spent an average of over £4,500 on each social home (up by 14%) as they continued to invest in repairs and maintenance and deliver their strategic priorities.

As a result of this higher spend, median interest cover fell to 128% (the lowest level since 2010). The trend has continued into the current financial year, as shown in RSH’s recent quarterly survey of housing associations’ finances.

RSH requires housing associations to report annually on their performance against a suite of value for money metrics. RSH publishes this information so that boards and other stakeholders, including tenants, can assess how each housing association is performing against its peers.

Will Perry, Directory of Strategy at RSH, said:

"Housing associations are grappling with a range of economic challenges while working to provide more and better social homes for people who need them.

"This creates competing pressures on their finances, and boards need to explain how they are allocating their resources and adding value. Our report allows stakeholders to scrutinise their landlord’s performance and hold them to account across a range of areas."

RSH’s value for money report is available on its website.

Regulator of Social Housing