Private providers lead social housing growth but challenges remain

Private providers lead social housing growth but challenges remain

0:02 AM, 5th November 2024, About 31 minutes ago

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Despite an increase in affordable housing, only 700 social homes were built in England last year, according to the Regulator of Social Housing (RSH).

According to the RSH, private registered providers added about 5,200 social rent homes in England.

However, this gain was offset by a loss of around 4,500 social rent homes for local councils, which the RSH claims is due to Right to Buy and other schemes.

More affordable rent homes

According to returns from private and local authority registered providers, the sector has about 4.5 million homes in England, with a net increase of nearly 43,000 social homes since 2023.

This growth comes from around 24,800 more affordable rent homes and 17,300 low-cost home ownership homes.

Private registered providers built, purchased or acquired the majority of new homes in the social housing sector, accounting for 85% of the total increase in affordable rent and 96% for low-cost home ownership properties.

The statistics show that 82% of social homes in England are general needs (social rent and affordable rent), while supported housing makes up 11% and low-cost home ownership 6%.

Challenging economic environment

Will Perry, director of strategy at RSH, said: “It is reassuring to see the sector continuing to build and acquire much-needed new social homes across the country, despite a challenging economic environment.

“This data provides a rich source of insight into the sector as a whole, helping us understand the challenges facing both landlords and tenants.

“Landlords should ensure they hold accurate, up-to-date data to inform strategic decisions, especially around rents and the condition of homes.”

71% of homes had an EPC C or above

Private registered providers also reported that 71% of homes had an EPC C or above, and a further 22% had a rating of EPC D.

Between 31 March 2023 and 31 March 2024, average weekly net rents for general needs (social rent) rose by 7.2%, in line with the limit set for the year.

The average weekly rent in England was £105.22, with the lowest in the North East at £88.11 and the highest in London at £129.83.

According to the RSH, nearly 42,000 of the surveyed homes did not meet the Decent Homes Standard. Of these, 37,500 were brought up to standard, while 1,800 were either sold or demolished.


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