The Regulator of Social Housing has today published its annual report on the main risks and challenges facing the social housing sector.
This latest Sector Risk Profile emphasises a range of risks that social housing providers need to account for when meeting the standards set out for them.
The report shows that providers are facing substantial financial pressures – rising inflation is effecting operating costs and the cost of debt is increasing, all whilst the country navigates a cost-of-living crisis, a proposed rent cap, and a weakening housing market.
The report indicates that, in order to maintain financial resilience, boards and councillors will need to have a good understanding of their biggest priorities, make tough decisions and ultimately make trade-offs. Said actions must be made in a timely and strategic manner however, and supported by robust planning and testing, as well as being communicated effective to all stakeholders.
In addition to their financial stability, tenant safety and the delivery of landlord services are also important responsibilities that boards must continue to prioritise.
The planned investment from providers to meet quality, building safety, and decarbonisation commitments must be underpinned by a robust, data-driven understanding of stock condition and policy changes, as well as proper engagement with tenants. Boards must also recognise that delaying investment could increase long term financial pressures and ultimately damage the sector’s reputation.
Finally, as demand for new housing remains high even though the economics of development continue to become more and more uncertain, providers will need to cautiously consider how to assess new development, making sure that all risks are well-managed.
Fiona MacGregor, Chief Executive at RSH, said: “Providers must take a strategic approach to managing the significant risks we have identified in our Sector Risk Profile and act appropriately to maintain their continued financial viability.
“Boards and councillors are the custodians of people’s homes, and it’s absolutely vital that tenants’ homes, safety and the delivery of essential landlord services are not put at risk.”
Read the full Sector Risk Profile here.
