For those considering an investment in the UK’s property sector, understanding the shifting dynamics of the social housing landscape is crucial. Recent data has unveiled the growing role of private registered providers in the supply of new social homes. But what does this mean for potential investors, local communities, and the broader housing market? Let’s delve deeper into these figures.

Private Providers Taking the Lead

According to the latest insights from the Regulator of Social Housing, as of 31 March 2023, the private sector has stepped up in a significant way:

• Private registered providers have been responsible for an 87% increase in Affordable Rent properties.
• When it comes to Low Cost Home Ownership properties, this figure rises even further to 98%.

This showcases a significant tilt towards private providers playing a more prominent role in expanding the social housing sector.

Breaking Down the Housing Types

• The vast majority, 83%, of social homes in England are categorised as general needs, which includes both social rent and Affordable Rent properties.
• Supported housing, which is vital for many vulnerable groups, constitutes 11%.
• Low Cost Home Ownership represents the remaining 6%.

Energy Efficiency: A Growing Concern

One of the pivotal factors in modern housing is energy efficiency, especially with increasing environmental concerns:

• Private providers reported that 68% of homes have an energy efficiency rating of EPC-C or above.
• A smaller percentage, 23%, had a rating of EPC-D.

This data underscores the move towards more energy-efficient homes, a factor that can impact long-term housing costs and sustainability.

The Bigger Picture: How Many Homes Are We Talking About?

Across England:

• The sector, including both private and local authority providers, caters to around 4.5 million homes.
• Since 2022, there’s been a net increment of 34,000 social homes.

Drilling down further:

• There was an addition of 26,000 homes for Affordable Rent.
• Over 14,000 more properties were dedicated to Low Cost Home Ownership.
• Interestingly, homes dedicated to social rent saw a decline by over 6,000.

Role of Local Authorities vs Private Providers

Local authorities saw a decline in homes for social rent by 9,000. Meanwhile, private providers built, purchased, or acquired about 3,000 properties, which helped counteract some of this decline. Notably, this marks the first rise in general needs social rent homes by private providers since 2017, and a significant chunk of this increase was contributed by for-profit entities.

Rent Trends: An Overview

The general needs (social rent) saw an average weekly net rent increase of 4.1% from 31 March 2022 to 31 March 2023. This was in alignment with the set limits for the said period. Delving into specifics:

• The average weekly rent in England stood at £98.20.
• Regional disparities were evident. Rents were the lowest in the North East at £82.08 and peaked in London at £121.09.

Stabilising Market Dynamics

After the tumultuous years following the coronavirus pandemic, there appears to be a semblance of stability returning to the social housing sector. This is evidenced by the steadying figures related to sales, lettings, and evictions.