Thank you to those who were able to attend our fourth Affordable Housing Summit. It was good to be able to interact with a full room on the day and we found it to be informative and enjoyable. For those who were unable to attend, we have set out the key takeaways below.
The Regulator's view of the sector
- The case for change is written in the data and the permission to innovate exists. The responsibility now sits with the sector to act efficiently, creatively. The direction is clear: deliver more, deliver better, and be open to doing it differently within a framework that protects tenants above all else.
- Viability thinking is shifting and providers must think more creatively about individual asset viability. Disposal, reinvestment and partnership with other providers are all legitimate tools, and the reputational risk of rationalising stock is diminishing.
- Delivery remains the priority however you achieve it, whether through direct development, partnership or alternative investment, the message from government and Homes England is consistent: what are you doing and how can you do more? Tenant experience remains the benchmark though.
- The Regulator is open but has limits. The Regulator welcomes innovation and alternative structures, but within non-negotiable bounds. Safety, quality and protection of social housing obligations come first. The Regulator's role is to de-risk the sector for tenants, not to act as a development enabler.
- Building organisations that can adapt to inflation, societal shifts and evolving demands mean the environment will keep moving. Success will belong to providers that become more effective and efficient not those clinging to conventional ways of working.
New delivery models and M&A
- The sector could stop being as defensive and start being more ambitious. New structures, partnerships and ways of working done well are not a threat to social purpose. They are the means of delivering it better.
- Whether through mergers, service sharing arrangements, joint ventures, for-profit structures, strategic partnerships with Homes England or private investment, the message is the same: be creative about the structures you use. The model matters less than whether it serves your purpose.
- Greater scale however achieved can enable investment, development ambition, regeneration in difficult markets and resilience that is simply out of reach for organisations working in isolation. That said, organisations of all shapes and sizes are essential and serve a critical purpose.
- Providers do not need to own or control everything they build or deliver. The right partnership, even with a for-profit partner or external investor, can achieve better outcomes for residents than going it alone. For-profit registered providers are here to stay; investor feedback has been positive, with greater cultural alignment than anticipated.
- Every decision, whatever structure or model is under consideration, should be tested against one question: does this deliver better outcomes for residents? If yes, pursue it. If not, walk away.
- Regardless of the structure or model chosen, success depends on shared values, mutual respect and genuine co-creation. Partnerships and new models imposed without this foundation will fail.
- Organisations cannot wait for government to provide all the answers. Boards and executive teams must take advantage of policy, find creative solutions, and be willing to consider all available options in service of their core mission.
Funding innovation
- The question is often no longer "where is the cheapest debt?" but "what debt best fits our organisation?" Funding solutions are being shaped as much by policy as by market conditions.
- The economics of building remain challenging: the average cost of a new social rent home has risen significantly, operating margins have compressed, and new build homes typically create a financial drag (where the marginal debt costs more than the new homes earn) for the first 20 years before they become self-sustaining.
- Key levers, both in terms of Government policy and those that RPs can themselves pull, to close the delivery gap include greater grant intensity through the new Social and Affordable Homes Programme 2026–2036, stock rationalisation, mergers, and strategic joint ventures with institutional capital. The National Housing Bank, with £2.4 billion in interest-free loans is a welcome step, though not on its own a gamechanger.
- Financing and subsidy are fundamentally different concepts, the debt capital markets remain the best vehicle for long-term funding for RPs. The 5% interest rate environment is not abnormal, it is time to treat it as the new normal.
Institutional capital and for-profit delivery
- Choosing the right funding partner is about far more than price — alignment on reputation, customer satisfaction, social purpose and long-term commitment is equally important.
- The sector cannot rely on government alone to solve the funding challenge. It must make its case more loudly, bring in other sources of capital, and be willing to try new approaches.
Asset strategy: sell, build or fix?
- Registered providers are being asked to do more than ever — build new homes, invest in existing stock, and make difficult decisions about viability and disposal — all at the same time.
- The market for stock rationalisation has never been more active; buying strategically in core areas is as important as selling. Transactions benefit both parties: sellers gain capital to reinvest; buyers gain efficiency.
- The three approaches — sell, build and fix — are not mutually exclusive. The right answer depends on each organisation's stock profile, geography, financial position and ambition. What is clear is that treating any one approach as a default is no longer viable.
Special thanks to those who spoke with us and contributed to the day:
Will Perry, Director of Strategy, Regulator of Social Housing
Gary Orr, Group Chief Executive, Abri
Paul Fiddaman, Chief Executive, Karbon Homes
Catherine Raynsford, Managing Director, Stock Acquisitions, L&G
Barbara Richardson, Managing Director, Square Roots
Tom Paul, Executive Director of Strategy & Change, Southern Housing Priya Nair, Chief Executive, The Housing Finance Corporation
Duncan Brown, Chief Financial Officer, MTVH
John Tattersall, Managing Director, Centrus
Mike Shepherd, Chief Investment Officer, VIVID
Francis Gater, Director - Affordable Housing - Value and Risk Advisory, JLL John Barnes, Director, Housing and Healthcare, Savills
