The Regulator of Social Housing (RSH) says the sector “remains robust” despite cash balances reducing to the lowest level in 12 years.

The regulator’s quarterly survey of private registered providers’ financial health also shows capital market issuances have hit a six-year low although new finance of £1.8 billion has been arranged during the quarter.

According to RSH, landlords continue to invest significantly in existing homes, spending £9.1 billion on repairs and maintenance over the 12 months till June 2025, compared to £8.2 billion in the previous year. The forecast 12-month spend has also increased by a further 3% to £10.3 billion.

Although 12-month development spend dropped slightly from £14.2 billion (in the year to June 2024) to £13.6 billion (in the year to June 2025), landlords are continuing to build new homes and forecast development spend for the next year is consistent with the previous quarter’s reported figure of £14.8 billion.

The report sets out that many landlords are still in the process of updating development projections and budgets following the Spending Review.

While cash balances have dropped to the lowest level in 12 years, total available liquidity (£33.5 billion) remains sufficient to cover forecast expenditure on net interest costs, loan repayments and net development for the next year, the regulator reports.

Meanwhile, investment in the sector remains robust with new finance of £1.8 billion being arranged in the quarter, with bank lending accounting for 84% of new facilities.

Cash interest cover (excluding sales) in the year to June was 81% and is expected to remain restricted, with an estimated 67% forecast for the year to June 2026. Almost 60% of providers are forecasting interest cover to be below 100% in this period.

Will Perry, Director of Strategy at RSH, said: “Landlords continue to invest significantly in new homes, and we know that they are looking to update their business plans in light of the substantial package of funding and other measures announced in the June Spending Review.

“The robust pipeline of private investment into the sector is essential for enabling landlords to both make important improvements to existing homes, as well as building new homes for the future.

“We remain committed to maintaining a financially robust sector and will take early action if we identify serious financial weakness.”

The report is based on the financial regulatory returns from 198 private registered providers (housing associations and other private registered providers, including for-profits), who own or manage more than 1,000 homes.