The Regulator of Social Housing's 2024 Sector Risk Profile
Yesterday, the RSH they published their annual Sector Risk Profile Report - intended to help boards have a better understanding of the risks organisations face, in an increasingly complex and diverse sector.
Published: October 18th, 2024
2 min read
The Regulator of Social Housing’s 2024 Sector Risk Profile has been published this week.
The RSH highlights intensified viability risks for social landlords. For the first time since 2009, debt servicing costs have reportedly exceeded net earnings across the sector.
The report goes on to reveal that aggregate interest cover has fallen reflecting high borrowing costs. Boards now must manage risks with reduced margin for error.
Landlords are facing increasing pressure to deliver both new and improved homes, ensuring essential safety work, despite mounting building safety costs. The RSH warns that reduced financial clearance could make providers vulnerable, with intensified risks. The sector has negotiating loan covenant waivers and deferring uncommitted developments, scaling back new home projections against last year’s forecasts.
The Regulator emphasises the importance of robust internal controls, proactive risk management, smarter systems of monitoring financial health, and considering mergers as a way of maintaining viability.
A copy of the report can be found through the following link : Sector risk profile 2024 - GOV.UK (www.gov.uk)
The specialist teams at Forbes will provide further updates for Registered Providers to assist in applying the new Sector Risk Profile in the changing regulatory environment.
In the meantime, please do not hesitate to contact us with any queries.
For further information please contact Daniel Milnes