What themes will shape the social housing sector in 2026?

And we can’t talk about the future of housing without talking about sustainability. The sector has a responsibility to lead the way in building and managing homes that are energy-efficient, affordable to live in and resilient for generations to come. If 2025 was the year that set the ambition, then 2026 is the year we turn that ambition into delivery.

2026 needs to be the year that the economy starts to flicker back into life. The current economic climate is casting a long shadow over housing delivery. Developers are navigating headwinds that make progress much harder. This is most starkly evidenced by planning approvals being at their lowest level for over 40 years. That’s a tough backdrop for a sector where the expectation is that we’ll deliver at pace.

The Bank of England’s overly cautious approach to keeping interest rates high is a significant part of the problem. When the cost of borrowing remains steep, development pipelines dry up, and momentum slows to a crawl.

A stronger, more decisive move beyond the recent 0.25 percentage point cut in December would send a clear signal of intent and unlock investment. We need the Bank to move further and faster, and we’ve set out the case for this in our discussion paper, Cut to the Chase: The Bank of England must reduce interest rates.

“The sector has a responsibility to lead the way in building and managing homes that are energy-efficient, affordable to live in and resilient for generations to come”

Lower rates would support the government’s housing ambitions. The headline pledge of 1.5 million homes delivered during this parliamentary term was always going to be a tall order, and in today’s climate, it looks increasingly unrealistic. The 10-year SAHP is the real opportunity. The funding is there, and the sector is ready to respond. But we also need the economic tide to turn.

Economic pressures, rising construction costs, inflation and supply chain challenges will all shape how quickly and efficiently this funding turns into homes on the ground. We also need to be mindful that changes in political priorities could also influence the programme over the longer term, making stability and clear direction more important than ever. And that leads us directly onto another challenge for 2026.

The May local elections will be upon us before we know it and could reshape the political map. If the polls are correct, we could see significant changes, creating a patchwork of political allegiances between mayors and local authorities.

This has the potential to influence housing decisions and redirect funding streams, adding uncertainty at a time when stability is crucial. Housing associations must be ready to work across divides and continue to act as trusted, reliable partners.

Our role in shaping local policy is also increasing. We’re not just delivering homes, we’re making sure housing remains at the heart of conversations about regeneration, planning and investment.

We need to keep housing firmly at the top of the political agenda, whatever any future elections bring. In periods of political turbulence, collaboration becomes even more important and that takes us to the next theme: the power of devolution and working together.

Devolution is reshaping how housing is delivered, and for the better. Decisions are moving closer to communities, making regional partnerships more important than ever. When local voices shape priorities, things get done quicker and in a way that really works for local communities.

Housing associations, councils, developers and community groups all have an important role to play. We’re already seeing this work in action here in Yorkshire, where the four housing partnerships are driving collaboration at levels none of us have experienced before.

A standout example is the York and North Yorkshire Housing Partnership’s Affordable Homes Standard, backed by the regional mayor David Skaith and supported by our 23 housing association members and two local authorities.

The standard is raising the bar for what quality affordable housing should be: generous space standards, a fabric-first approach, high levels of insulation, low-carbon heating and homes that are just as good as those for sale on the market.

“We need to keep housing firmly at the top of the political agenda, whatever any future elections bring. In periods of political turbulence, collaboration becomes even more important”

Aligning with local priorities will be key to making the most of the SAHP. The government’s continued commitment to devolution, with new skills and growth funding and £1.3bn for mayoral combined authorities through the National Housing Delivery Fund, clearly shows that power is shifting closer to communities.

Homes England’s move to a place-based regeneration role is another positive signal of this change, pointing to a brighter future – one where collaboration and local leadership can unlock the full potential of housing investment. And while devolution is helping us deliver new homes, it’s also opening the door to something just as important: regeneration.

Regeneration isn’t just a housing issue – it’s an economic one too. Yet it’s often overlooked because it can feel complex and politically sensitive. But ignoring it isn’t an option.

Focusing only on the numbers of new homes brings real risk. If the government prioritises building alone, existing neighbourhoods will be left behind. Regeneration is about tackling deprivation, creating places where people genuinely thrive and acting as a catalyst for growth.

Throughout 2026 and into next year, our ‘Renew’ call for evidence will bring together social housing providers, national and local government, customers and others, to shape a shared vision for regeneration, which must sit alongside development as a top priority. That means investing in upgrading existing homes, and improving public spaces and local infrastructure so communities can thrive.

Our sector’s appetite to improve existing homes and make them warmer, more energy-efficient and more comfortable to live in couldn’t be greater. Housing associations are leading the way, with 72.5% of our homes rated Energy Performance Certificate Band C or above, outperforming every other housing sector. That’s something to be proud of, but it is only the start.

The demand for funding speaks volumes too. The £1.29bn Warm Homes: Social Housing Fund was oversubscribed by more than £1bn. That tells us two things: the ambition is there, and the sector is ready to deliver.

We now need the government to keep pace by increasing funding and extending the scheme to 2030. Without that commitment, we risk slowing down on tackling climate change just at the point at which we need to go even further and faster.

Funding will always be a challenge, but innovation and collaboration can help us deliver homes that are good for people and the planet. Closing the green skills gap is just as important. Without the right people and skills, progress will stall.

And then there is infrastructure. Delays in grid connections and capacity constraints from distribution network operators are holding us back. If we are serious about hitting net zero targets, these issues need urgent attention.

And what’s next when it comes to digital transformation and AI? What felt far-fetched and futuristic a few years ago is now part of day-to-day life for an increasing number of people. 2026 will be the year adopters of AI really start to realise the benefits for our customers.

At Yorkshire Housing, our shift to pre-emptive approaches is gathering momentum. We’re moving from reacting to problems to predicting and preventing them before they happen. Technology is helping us spot trends in repairs, energy usage and rent payments so we can act early, support our customers and fix things before they break.

AI-powered tools are also making it easier for customers to get the right information at the right time. But as we embrace technology, we need to do it responsibly. How and when we use AI must be fair, ethical, transparent and focused on improving lives, not just processes. Technology should enhance relationships, not replace them.

2026 must be the year to turn opportunity into action. The SAHP gives our sector the certainty we’ve been waiting for, and with it comes the chance to deliver lasting change.

The challenges ahead are real: economic pressures, political shifts and the need to accelerate sustainability. But so are the opportunities. With strong partnerships, innovation and a shared commitment to doing what is right for people and the planet, we can make this a defining year for housing.

2026 is the year when many of those plans we’ve been working on become a reality.

Nick Atkin, chief executive, Yorkshire Housing