5 things we learned from plans to revise the RSH’s economic standards

New requirements for social housing focus

With many landlords having diversified into non-core tenures, the regulator has said it is considering whether to introduce a requirement for social housing to take a “central role” in providers’ activities.

“This could be in relation to the proportion of social housing assets, or turnover, or it could take another form,” the paper says. The aim is to “reduce the risk that non-social housing activity has a negative impact on social housing”.

What this could mean for for-profit providers with a strong focus on shared ownership is not yet clear at this stage.

Minimum performance levels on key financial metrics

The regulator says it is looking at the idea of setting out “specific expectations for minimum levels of performance on key financial metrics”.

The paper says: “Our current standards require landlords to have access to sufficient financial liquidity at all times.

“We are considering whether to expand the range of requirements to include further elements of financial resilience, so our expectations are clearer.”

It is also worth noting the revised economic standards will relate to governance, financial viability and value for money. 

Development targets

The sector’s development struggles have been well documented as rising costs, extra regulation and the need to spend more on existing stock has stifled pipelines.

But the RSH says it is considering asking landlords to up their game on how they work out their development plans.

“We could then hold [providers] to account for appraising their development capacity and capability, setting sensible targets based on that appraisal, and delivery against their own targets,” the paper says.

“This could include publishing comparable information about [a] landlord’s development capacity and capability, and [its] performance in delivering more social homes.”

A more tolerant approach?

The regulator is open to the idea of new entrants and models for the sector. However, it warns that those operating a for-profit model, with investors involved, can be “at greater risk of financial failure”.

The RSH says it tries to minimise the risk of financial failure and loss of homes through “strong governance, risk management and structural expectations”.

But it raises the idea of a more lenient approach.

“We could choose to be more permissive in our regulation and allow for a higher likelihood of financial failure and loss of homes,” the report says.

“Doing this might enable more investment in more homes, but we and all our stakeholders would need to be clear-eyed about the potential consequences.

“This includes the possibility that our existing regulatory tools would not be able to prevent or mitigate financial failure, loss to creditors and loss of homes in higher-risk financing models.”

Holding landlords to account on business plan targets 

The regulator says its considering “setting requirements about the minimum areas we expect business plan targets to cover”.

It points to the fact that the government wants landlords to make improvements in areas such as cladding remediation, energy efficiency, net zero and decency to “specific timescales”.

The paper adds: “We would hold landlords to account for delivering against these targets, monitor progress, and expect them to be able to justify any decisions they make in setting their objectives and any targets within those objectives.

“This would be a significant shift in our regulatory approach.”

Jonathan Walters is speaking at Housing 2026, taking place 23-25 June. Find out more below