Under Pressure: Navigating The Strain On Social Housing In 2025

Spotlight
Written by Kim Parsons
2/6/25

No matter where you sit, whether you’re customer-facing with residents, working in repairs and maintenance, developing new homes, or setting strategy from the top, the pressure in social housing is real and growing.

I recently ran a poll asking professionals across the sector: what’s hitting the hardest in your day-to-day work?

Here’s how the responses stacked up:

  • 15% – Budget Pressures
  • 26% – Doing More with Less
  • 18% – Red Tape and Slow Processes
  • 42% – Staff Shortages and Burnout

Each of these challenges reflects not just operational hurdles but also the emotional weight that teams carry while trying to do right by tenants and communities. Here’s what each means for the sector and how we might begin to tackle it.

Budget Pressures: 15%

Financial strain is at the heart of many operational challenges in social housing. According to the Local Government Association (LGA), 72% of councils with Housing Revenue Accounts (HRAs) expect to draw on financial reserves to balance their budgets for 2025/26. In addition:

  • 67% of councils are preparing to reduce spending on supervision and management.
  • 57% anticipate scaling back repairs and maintenance services.

Potential Solutions:
  • Data-Driven Decision Making: Housing providers can leverage comprehensive data platforms to prioritise critical spending areas and measure the long-term impact of budgetary decisions.
  • Collaborative Procurement: Partnering with other housing associations to develop shared procurement frameworks can reduce costs through economies of scale.
  • Long-Term Financial Planning: Establishing multi-year financial models, including stress-testing and scenario planning, can build greater fiscal resilience.

Doing More with Less (26%)

Local authorities spent £2.29 billion on temporary accommodation in 2023/24, a staggering 29% increase from the previous year. This reflects the increased demand for housing services, which are often delivered by teams that are overstretched and under-resourced.

You may have noticed a growing spotlight on Tenant Engagement across social platforms, and rightly so. There's increasing discussion about how we meaningfully connect with residents, but a familiar narrative often emerges: "Tenants just want to be left alone."

But should we really wait until a complaint lands before engagement becomes a priority? If we're only getting to know our tenants once issues arise, can we honestly call that engagement, or is it just damage control?

Proactive engagement should be the goal. The more we can do to prevent issues, rather than react to them, the stronger the trust and relationships we build. But the challenge remains: how do we meaningfully involve residents who choose not to engage?

Potential Solutions:
  • Technology Integration: From case management systems to tenant portals, digital tools can automate administrative tasks and free up staff time for high-impact work.
  • Process Optimisation: Reviewing internal workflows to eliminate redundancy and streamline service delivery can improve operational efficiency.
  • Staff Empowerment: Continuous professional development, role enrichment, and clear career pathways help staff feel more capable, valued, and motivated.
  • Shift the focus from "participation" to "personalisation." Not all tenants want to attend meetings or fill out surveys, but they may still value being heard in ways that suit them. Consider small, low-pressure touchpoints like personalised welcome calls, door-drop postcards asking “how are we doing?”, or tailored updates on local services. Engagement doesn’t always need to be loud, it needs to be relevant.
  • The key is creating multiple, accessible pathways for tenants to connect, on their terms.

Red Tape and Slow Processes (18%)

Complex internal processes remain a key obstacle. A Housemark survey found that 53% of professionals identified red tape and slow approval mechanisms as barriers to effective service delivery.

Potential Solutions:
  • Governance Reform: Simplifying decision-making frameworks can accelerate service delivery and improve responsiveness to tenants’ needs.
  • Cross-Functional Collaboration: Encouraging alignment between departments, such as finance, operations, and maintenance, can reduce delays and duplication.
  • Pilot Programs: Introducing and evaluating innovative approaches on a small scale allows for adjustment before full rollout, minimising risk and enhancing impact.

Staff Shortages and Burnout (42%)

The London Homes Coalition estimates a need for 31,000 new workers in the social housing sector over the next five years to meet growing demand. Yet high stress, low morale, and limited career growth opportunities are fuelling attrition across roles.

Potential Solutions:
  • Retention Strategies: Initiatives such as flexible working, clear career progression, and recognition programs can help keep skilled staff in the sector.
  • Recruitment Drives: Campaigns tailored to graduates, career changers, and skilled tradespeople can build a broader talent pipeline.
  • Wellness Programs: Providing access to mental health resources, stress management support, and employee assistance schemes is vital for staff sustainability.

The Importance of Regulatory Compliance

Alongside these challenges is an increasing need to meet regulatory obligations. Legislation such as Awaab’s Law, introduced to ensure timely action on housing health hazards, has raised the bar for housing standards. This law mandates that landlords investigate and rectify reported damp and mould issues within strict timeframes, underscoring the importance of compliance as both a legal and ethical imperative.

Fire risk assessments (FRAs) are not just a regulatory checkbox, they are a frontline defence in keeping residents safe. Yet, despite their critical importance, delivering true fire prevention remains one of the sector’s most complex challenges.

FRAs provide the foundation, but prevention is far more than paperwork. It involves identifying risk, acting on findings swiftly, and, crucially, ensuring residents understand and support safety measures. This becomes especially challenging in older housing stock, where structural limitations and historical maintenance backlogs can hinder meaningful progress.

Then there’s the human factor: engaging tenants around fire safety without causing alarm, resistance, or misunderstanding. For many residents, regular visits, notices, and fire drills can feel intrusive or irrelevant, until it’s too late.

Other key regulations shaping the sector in 2025 include:
  • The Social Housing (Regulation) Act 2023, which empowers the Regulator of Social Housing (RSH) with stronger enforcement powers.
  • The Decent Homes Standard Review, which places further emphasis on quality, safety, and resident engagement.
  • The Consumer Standards were revised by the RSH, requiring proactive landlord engagement and performance reporting.

Non-compliance risks reputational damage and legal penalties and directly undermines tenant welfare. Therefore, integrating compliance frameworks into daily operations must remain a core focus, even amidst resource constraints.

Spotlight: Social Housing

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Contact Us

If you or your team ever need our support or expertise, please do not hesitate to reach out. I’m here to help.

Kim Parsons

Phone: 0121 798 0498

Mobile: 0770 015 7018

Email: kim@avalonhousing.co.uk

Written by Kim Parsons
2/6/25