Social landlords could save £880m through efficiency improvements, Housemark finds

Housemark said the highest-cost landlords are spending significantly more per home than their lower-cost peers, without a corresponding increase in service quality.

Stock location and type remain key drivers of costs, but researchers said that operational efficiency plays an “even bigger role” in financial performance.

The best-performing landlords have “streamlined operations and optimised resource allocation”, demonstrating that it is possible to balance cost control with service delivery.

Greater numbers of social landlords now operate in-house repairs teams, set against a backdrop of greater agility to deal with volume peaks and troughs.

Workforce engagement is also a key source of improved efficiency. Landlords with higher employee satisfaction saw 18% lower costs, 6% higher positive tenant perception and 91% higher operating margins.

Meanwhile, leadership engagement in voids management directly correlates with better satisfaction, reinforcing the need for “strong internal cultures” to drive performance improvements.

The analysis suggested that if all landlords operated as effectively as those with top consumer gradings, an additional 83,000 tenants could be satisfied with their service.

Housemark, which is jointly owned by the National Housing Federation and the Chartered Institute of Housing, argued that there is an opportunity to “reframe the investment narrative” and position social housing as an “efficient, well-managed sector” that can offer long-term, stable returns.

Despite economic challenges, social housing remains attractive to investors, with £2.6bn in new finance arranged in the third quarter of 2024-25.

The company’s financial modelling warned that, without action, rising costs will continue to outstrip rental income growth. Operating costs per unit rose by an average of £500 in 2024, with further, although smaller, increases forecasted in 2025.

The report highlighted four key priorities for landlords in the coming years: smarter service delivery models that balance cost, compliance and customer satisfaction; better use of technology to drive efficiencies; more transparency in performance reporting; and embedding a culture of data-driven efficiency where maximising value is “central to every business decision”.

Jonathan Cox, chief data officer at Housemark, said: “Social landlords are facing increasing financial pressures, but our research shows there are real opportunities to create financial headroom without compromising on service. By focusing on value for money, channelling investment and driving operational efficiencies, the sector can reinvest significant funds to meet housing need and regulatory requirements.

“Now is the time for social landlords to unlock further capacity and improve financial performance, despite economic headwinds. By focusing on efficiency, service quality and investment-readiness, the sector can build resilience and deliver better outcomes for tenants and communities.”