The Regulator of Social Housing’s (RSH) first substantial set of results of annual stability checks for social landlords owning more than 1,000 homes shows all 27 providers comply with the financial viability standard and 20 have been regraded from V1 to V2.

The stability checks focus on providers’ financial resilience and consider changes to their risk profile, including external economic factors beyond their control.

The regrades reflect the RSH’s judgement that the providers have the financial capacity to deal with a reasonable range of risks which need to be managed to ensure continued financial stability.

The stability checks are based on data submitted by providers in June this year. The results published today are in line with the RSH’s expectations and reflect challenging conditions across the economy. Higher inflation and borrowing costs, as well as a weakening housing market, are putting greater pressure on providers’ financial headroom as they continue to invest in new homes and carry out safety, decarbonisation and repair works.

The RSH says it’s aware that some providers are considering their strategic priorities and are re-working plans to take account of more recent economic changes, and it expects that strategic decisions made by providers’ boards will be reflected in future data submissions.

Jonathan Walters, RSH Deputy Chief Executive, said: “The results of our first round of stability checks reflect the significant economic challenges facing the sector.

“Against this backdrop, we have seen a substantial number of providers moving to V2 grades. These providers continue to comply with our financial viability standard and the sector remains in a strong financial position overall.

It is crucial that all providers maintain a strategic approach to risk management and focus on their key objectives: investing in new and existing homes and providing quality services for their tenants.”