New social homes keep being built, RSH data reveals

The housing crisis feels relentless, yet the latest figures from the Regulator of Social Housing (RSH) show that the sector is still adding to the supply of homes. The numbers, released on 24 October 2023, give a rare glimpse of how the social housing market is evolving at a time when many renters are feeling the pinch.

Across England, registered providers – both private and local authority – now manage roughly 4.5 million homes. Compared with the previous year, the stock grew by almost 34,000 units, a modest but positive sign in a market where demand far outstrips supply.

The composition of that growth is telling. About 26,000 of the new homes were added to the Affordable Rent pool, while low‑cost home‑ownership properties rose by more than 14,000. By contrast, the number of homes let at social rent fell by over 6,000, with local authorities accounting for a loss of around 9,000 social‑rent units. Private registered providers partially offset the drop, adding roughly 3,000 homes of that type – the first such increase by private firms since 2017.

Private registered providers are now the engine of new construction. They were responsible for 87 % of the increase in Affordable Rent homes and a striking 98 % of the rise in low‑cost ownership units. In total, private firms own about 2.9 million of the 4.5 million homes, leaving local authorities with roughly 1.6 million. This shift towards for‑profit developers raises questions about the balance between profit motives and the social purpose of the sector.

Rents have risen in line with the statutory cap, with the average weekly general‑needs rent climbing 4.1 % to £98.20 between March 2022 and March 2023. Regional disparities remain stark – rents are as low as £82.08 in the North East but reach £121.09 in London. Energy‑efficiency certificates are improving, with 68 % of homes rated EPC‑C or better, yet 23 % still sit at EPC‑D. The data also highlight quality concerns: among homes failing the Decent Homes Standard, nearly half are not in a reasonable state of repair and a similar proportion lack adequate thermal comfort.

For renters, the message is mixed. While the sector is delivering more affordable‑rent and low‑cost ownership options, overall rent levels continue to climb and the decline in social‑rent stock could tighten options for the most vulnerable. Landlords – especially private registered providers – may see opportunities in the growing Affordable Rent market, but they must also grapple with rising expectations around energy efficiency and repair standards. Buyers looking at low‑cost ownership should be aware that the supply is expanding, yet the quality of some units may still need improvement. Ultimately, the RSH statistics underscore the importance of robust data to guide policy and investment decisions as the housing crisis evolves.