Repairs spend up 15% as social housing providers prioritise mould and building safety

Housing associations in England have increased their annual spend on repairs and maintenance by 15% year-on-year, according to data collected from nearly 200 providers by the Regulator of Social Housing (RSH).

The latest RSH quarterly survey shows providers spent £7.9bn on total repairs and maintenance over the year to 31 March, up from £6.9bn the previous year.

The survey, which pulls in data from 199 providers owning more than 1,000 homes, also shows the sector has increased its forecast repairs and maintenance expenditure for the 12 months to March 2015 by 4% to £9.1bn.

Spending increased 10% in the first quarter of 2024 compared to the previous quarter, totalling £2.2bn, of which £1bn relates to capital works.

The RSH report said: “Providers are continuing to report higher volumes in responsive repairs driven by the management of damp and mould issues, building safety compliance repairs, and catch-up works.

“The backlog mostly relates to larger repair programmes being postponed due to responsive repairs taking priority; with the additional volume of damp and mould works continuing to prevail following stock condition surveys.”

It added that increased spend on void properties had also been reported to reduce the back log of vacant homes.

The survey’s findings also show providers spent £14.4bn on acquiring and developing new homes, 10% up on the previous year. However, development expenditure in the three months to March compared to the previous quarter fell from £3.9bn to £3.1bn and spend was 24% below the £4.1bn originally forecasted for the quarter.

The RSH said investment in the sector remains strong with new finance totalling £4.4bn arranged in the three months to 31 March, the highest quarterly figure for more than three years.

It also said cash interest cover – which compares earnings to interest payments and is used as a measure of financial capacity – is forecast to average 75% in the year to March 2025, less than a previous forecast of 80% in December,

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The RSH said: “The drop in forecast interest cover is attributable to record projected levels of spend on repairs and maintenance and rising interest costs.

“The forecast spend on the latter is at the highest level ever recorded when other finance costs are excluded.”

The shift in spend from development towards improving existing stock has been illustrated in the sector by comments from leaders among several large providers in recent week.

Clarion last month announced a plan to radically reorganise the 125,000-home housing association to focus on improved housing management and customer service. L&Q meanwhile is exploring the sale of its PRS properties and strategic land company in an effort to “put residents first”, chief executive Fiona Fletcher-Smith said last month.

Earlier this week, 78,000-home provider Southern confirmed to Housing Today it is looking at redundancies in its development team as it cuts its annual development to just 250 homes over four years.