The Regulator of Social Housing’s (RSH) latest quarterly survey reveals that 70% of housing associations reported net cash outflows between April and June 2025, primarily driven by rising repair and maintenance costs. Sector cash balances fell by £800m to £3.4bn, the lowest level in 12 years, with further reductions to £2.9bn forecast by mid-2026. One large provider accounted for a third of the fall, though the trend was widespread. Liquidity across the sector remains strong at £33.5bn, sufficient to meet interest, loan repayments, and development spending for the year ahead. However, cash interest cover (excluding sales) fell slightly to 81% for the year to June 2025, down from 82% in the previous quarter. The forecast for the year to June 2026 indicates a further decline to 67%, reflecting ongoing financial pressures. Repairs and maintenance spending rose 6% year-on-year to £2.2bn in the quarter, while capital works increased 16% to £0.9bn, the highest on record. The annual spend on existing homes reached £9.1 billion, with forecasts rising to £10.3 billion. Development spending remains steady at around £14bn annually.
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