The report found that the average cost of maintaining a social housing unit in 2023/24 exceeded £5,000
The average cost of maintaining a social housing unit has risen 11% to a record-high of more than £5,000 per unit, a new Housemark report has revealed.
In 2023/24, social landlords spent more on maintaining properties to ensure they meet regulatory standards compared to the previous year.
Housemark attributes the increase to the ongoing effects of inflation, supply chain disruptions, and ongoing investments in existing housing stock to ensure safe, high-quality homes for tenants.
Despite the increased costs per social housing unit and challenging financial environment, Housemark found that social landlords’ operating margins are rebounding while they continue to invest in new housing and essential maintenance.
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The Value for Money (VFM) Metrics 2023-24 report revealed that social housing providers’ average operating margins rose from 18.5% in 2022/23 to 19.3% in 2023/24.
Housemark’s VFM Metrics 2023-24 report is based on data from English housing association landlords with 1,000 homes or more, offering data insights in advance of the Regulator of Social Housing’s global accounts.
The data business, owned by the Chartered Institute of Housing and the National Housing Federation, indicated the improvement follows “concerted efforts” to manage expenditure and more maintenance costs now being treated as capital expenses.
The sector has also invested £14.4bn in new housing supply in 2023/24, adding to around 43,000 new social homes.
Chief data officer at Housemark, Jonathan Cox said: “With operating margins beginning to rise after recent declines, we’re seeing a cautiously positive sign amidst ongoing financial pressures.
“However, as costs per unit continue to climb, understanding value for money remains essential for strategic, well-informed decision-making across the sector.”
Cox added: “Our latest report underscores the sector’s commitment to creating capacity for more homes and investment in existing homes as well as highlighting the disciplined cost management that is driving improvements. We are proud to work together with landlords to raise the bar for the housing sector”.
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