The overall financial outlook for social housing is improving, but significant challenges remain, a Local Government Association (LGA) survey reveals.
Responses from 154 councils, 72 of which manage Housing Revenue Accounts (HRAs), show fewer councils needing to draw on reserves – 46% in 2026/27, down from 72% in 2025/26.
Confidence in balancing HRA budgets also rose, with 71% saying they expect to do so, up from 61% last year. Maintenance and repair capability for existing stock improved to 61% from 52%.
Despite these gains, 44% of councils reported that HRA pressures could limit investment in new homes, and nearly all (99%) plan to raise rents within allowed limits.
