“This is the first time in my career we are spending more on maintenance than new build.”
That candid remark from a Chief Operating Officer at a G15 Housing Association sums up the current reality. For decades, expansion was the main story. Now the focus has moved to maintenance, compliance, and crisis management and the implications are significant.
Compliance Moves to the Top of the List
The Social Housing Regulation Act has ushered in a new era of resident-centred compliance. Housing Associations (HAs) now have a legal duty to raise standards on safety, transparency, and tenant engagement.
This means significant investment in systems, training, and infrastructure to meet these new expectations. The cost of compliance is steep, and for many HAs, it’s redirecting funds away from development and into remediation.
Simultaneously, the Leasehold and Freehold Reform Act and the Renters’ Rights Bill are reshaping ownership models and tenant protections. These reforms demand operational overhauls, from lease management to resident communications, further stretching already tight budgets.
Local Authorities Under Strain
Councils face equally tough pressures. In 2023/24, local authorities spent nearly £2.3 billion on temporary accommodation, supporting over 126,000 households, a record high.
The Homelessness Prevention Grant rose to £633 million, but new ringfencing rules mean only £322 million can be used for temporary housing. That leaves a £76 million shortfall.
On top of that, social care spending continues to climb. In 2025/26, Adult Social Care is budgeted at £26.7 billion and Children’s Social Care at £15.5 billion, both rising in real terms.
These figures highlight a system under strain, where emergency response trumps long-term planning.
Development Ambitions vs Financial Reality
The Government’s £39 billion Social and Affordable Homes Programme aims to deliver 300,000 homes over the next decade. On paper, it is ambitious. In practice, delivery is proving difficult.
Housing Associations, responsible for 80% of new social housing delivery, are facing weakened financial capacity due to rising interest rates, building safety requirements, and years of suppressed rent growth.
The new rent settlement of CPI +1% for ten years offers some stability, but it’s not enough to offset the backlog of maintenance and compliance costs
To manage risk, many HAs are pursuing stock rationalisation, selling off underperforming assets to focus on core geographies.
A Tougher Market for Interims
In this climate, the market for interim consultants is facing headwinds. The latest IIM Interim Management Survey reveals a “two-speed” market: while some consultants continue to secure regular work, others are struggling with fewer opportunities and lower rates.
Public and third sectors, traditionally reliant on interim expertise, have been particularly affected by off-payroll regulations and shifting government attitudes toward consultancy spend.
Yet interim professionals remain essential. Organisations need short-term expertise to navigate new regulation, retrofit programmes, disposals, and resident engagement strategies. The challenge lies in matching this need with limited budgets and risk-averse procurement processes.
Looking Ahead: Adaptability Will Be Critical
Based on the indicators, momentum is beginning to return in areas such as property maintenance and disposals. For specialists in new build delivery, however, the outlook remains difficult.
The sector is in transition. Professionals who adapt by diversifying skillsets, aligning with compliance-led projects, or working within changing procurement frameworks will be best placed to stay ahead in the year to come.
Curious about how changes like this affect the property, housing, or architecture space? We’re here to help. Drop us a line at connie.birkett@oysterpartnership.com, we’d love to chat.