RSLs’ finances weakened, but projections show some improvement over the medium term, Regulator reports

Shaun Keenan, Assistant Director of Financial Regulation, said:

“RSLs are operating in the most challenging landscape we’ve seen. They continue to face significant pressures including from market volatility, cost increases, higher borrowing costs, supply issues and labour shortages.

“At the same time, they continue to work to deliver quality homes and services for tenants and service users, meet challenges around net zero standards and keep tenants’ rents affordable.

“Whilst RSLs have worked to weather the challenges and the financial projections indicate a slight improvement in the medium term, finances at the aggregated level have weakened. We are engaging with more RSLs on financial matters than in the past, but most are still managing the financial pressures, albeit with tightening finances. As a result, RSLs have reduced capacity to respond to emerging costs, like National Insurance increases, which are not included in these projections. This means that Governing Bodies will continue to face some difficult choices and trade-offs as they prioritise expenditure. We will continue to engage with RSLs as they work to tackle the challenges ahead.”