Analysing factors shaping the UK Social Housing Market

Analysing factors shaping the UK Social Housing Market

With the UK population expected to reach 73 million by 2036, the increasing demand for social housing remains a pressing concern for those navigating the housing rental market. Currently, councils are housing up to 200,000 people in temporary accommodation, with a further 1.2 million families placed on a social housing wait list.

Following the release of AMA Research’s latest edition of the housing RMI Market Report UK, the market is predicted to grow over the next 5 years, showing resilience after much economic uncertainty.

Despite this persistence, 2025 remains a complex year for UK Social housing providers, as they must navigate a rapidly changing forecast to accommodate demand, environmental considerations and government targets.

In this blog, we explore crucial factors predicted to shape the housing market this year:

Labour Housing Target

Following the general election in the United Kingdom, the Government have faced scrutiny on Labour’s approach to social housing, promising up to 5 years of development for the Construction sector.

A key target to support Labour's economic growth mission is the manifesto commitment to build an additional 1.5 million homes, with a focus on social rented houses. Deputy Prime Minister Angela Reyner faced a series of questions last month on the likelihood of these targets, where she responded:

"Even if this government achieves the 1.5 million-homes target, It is a dent in what we need to achieve as a whole country to deliver the houses we desperately need.”

Tenant Dissatisfaction & Safety Concerns

Analysis reveals that tenant dissatisfaction from social housing, particularly maintenance work, has increased since 2021. Looking to 2025, routine service checks may impact RMI expenditure for housing associations as part of a commitment to prioritise the efficiency and safety of homes.

Plans to tackle landlords who fail to provide satisfactory accommodation was announced in 2024, supporting Awaab's Law.

Navigating Sustainability Targets

As the UK government outline their target to bring all greenhouse gas emissions to net zero by 2050, social housing providers must adapt to show compliance with the 2025 Future Homes and Building Standards. It's clear that energy - efficient options reduce carbon footprint and tenant energy costs, despite the financial challenges these adjustments pose.

To combat financial strain, The National Housing Federation outlines additional funding set up to support social housing providers with home insulation and energy saving. The government confirmed a further £1.29 Billion to complete these plans back in 2024.

The Way Forward For Social Housing

For the social housing market to succeed in 2025 and restore public faith in Labour's housing targets, housing associations must embrace these factors and challenges, prioritise tenant well - being and implement sustainable practises.

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