Jonathan Cox

Despite record-high costs per unit and tough economic conditions, operating margins are rebounding with providers continuing to invest in new housing and essential maintenance. 

Among the report’s headline findings, average operating margins for social housing providers rose from 18.5% in 2022-23 to 19.3% in 2023-24. This improvement follows concerted efforts to manage expenditure and reflects increased capitalisation of maintenance work. 

The report also features a significant rise in the average social housing cost per unit, which exceeded £5,000 – up 11% on the previous year. This increase is driven by the ongoing impact of inflation, supply chain challenges and substantial investments in existing housing stock to ensure safe, quality housing for tenants. 

Despite these pressures, the sector has maintained its commitment to development, with £14.4 billion invested in new housing supply in 2023-24. This investment has added around 43,000 new social homes, highlighting the sector’s dedication to addressing the UK’s housing shortage even with significant economic constraints. 

Housemark’s VFM Metrics 2023-24 report provides an exclusive early look in advance of the Regulator of Social Housing’s global accounts. It is based on data from English housing association (PRP) landlords with more than 1,000 homes. 

Presented by chief data officer Jonathan Cox and research manager John Wickenden, its key findings were unveiled at Housemark’s Housing Data and Analytics Summit on 7 November in Nottingham, with Housemark members, finance directors and CEOs also receiving a preview. Attendees gained an exclusive first look at the sector’s financial performance and insights into the latest trends across all seven VFM Metrics, along with Housemark’s in-depth analysis of cost pressures, trends and sector resilience. 

Jonathan Cox said: “Housemark’s VFM Metrics 2023-24 report provides a critical early insight into the financial health and resilience of the social housing sector. With operating margins beginning to rise after recent declines, we’re seeing a cautiously positive sign amidst ongoing financial pressures. However, as costs per unit continue to climb, understanding value for money remains essential for strategic, well-informed decision-making across the sector. 

“At Housemark, we are committed to supporting the sector with robust data and analysis that drives resilience, creates capacity and enables growth, particularly 
during uncertain times. Our latest report underscores the sector’s commitment to creating capacity for more homes and investment in existing homes as well as highlighting the disciplined cost management that is driving improvements. We are proud to work together with landlords to raise the bar for the housing sector.”