The findings, released at the National Housing Federation Finance Conference 2025, highlight significant cost-saving opportunities that could support more repairs, new homes, and better tenant services at a time of increasing financial pressure.

Housemark’s analysis shows that if all social landlords operated at top-quartile efficiency levels based on an analysis of C1 graded high performing organisations, the sector could reinvest an estimated £880m back into stock improvements and new developments. This would be enough to fund 4.4m additional responsive repairs, 20,000 customer engagement specialists to improve tenant services, or 4,500 new homes to help tackle the housing shortage.

Housemark’s cost benchmarking, comparative analysis highlights large variations in cost per unit across the sector, showing that some landlords are successfully delivering high satisfaction at lower cost. The highest-cost landlords are spending significantly more per unit than their lower-cost peers, without a corresponding increase in service quality.

Stock location and type remain key drivers of costs, but Housemark’s data suggests that operational efficiency plays an even bigger role in financial performance. The best-performing landlords have streamlined operations and optimised resource allocation, demonstrating that it is possible to balance cost control with excellent service delivery.

Landlords with higher employee satisfaction not only see 18% lower costs, but also report 6% higher positive tenant perception and 91% higher operating margins, reinforcing the impact of workforce engagement on financial health.

Despite economic challenges, social housing remains attractive to investors, with £2.6bn in new finance arranged in Q3 2024/25. Bank lending continues to dominate, accounting for 65 percent of new facilities, highlighting the need to balance private investment with public funding.

Compared to banking, commodities, and defence, social housing is a low-risk, low-reward sector, but with strong environmental, social, and governance (ESG) credentials, there is an opportunity to reframe the investment narrative and position social housing as an efficient, well-managed sector that can offer long-term, stable returns.

Housemark’s financial modelling warns that, without action, rising costs will continue to outstrip rental income growth. The report highlights four key priorities for landlords in the coming years:

• Smarter service delivery models that balance cost, compliance, and customer satisfaction
• Better use of technology to drive efficiencies while maintaining high service standards
• More transparency in performance reporting to ensure landlords are accountable to tenants
• Embedding a culture of data driven efficiency where maximising value is central to every business decision

Jonathan Cox, chief data officer at Housemark, said: “Social landlords are facing increasing financial pressures, but our research shows there are real opportunities to create financial headroom without compromising on service. By focusing on value for money, channelling investment, and driving operational efficiencies, the sector can reinvest significant funds to meet housing need and regulatory requirements.

“Now is the time for social landlords to unlock further capacity and improve financial performance, despite economic headwinds. By focusing on efficiency, service quality, and investment-readiness, the sector can build resilience and deliver better outcomes for tenants and communities.”

Key findings from Housemark’s report:

• In 2024, the sector invested £11.4bn in new supply and £3bn in repairs and maintenance over the next 12 months, reflecting a balancing act between new development and maintaining existing homes.
• Greater numbers of social landlords now operate in-house repairs teams, set against a backdrop of greater agility to deal with volume peaks and troughs.
  Housemark’s analysis suggests that if all landlords operated as effectively as those with top consumer gradings, an additional 83,000 tenants could be satisfied with their
• landlord’s service.
• Operating costs per unit rose by an average of £500 in 2024, with further, though smaller, increases forecasted in 2025.
• Leadership engagement in voids management directly correlates with better satisfaction, reinforcing the need for strong internal cultures to drive performance improvements.