New social housing lettings in England: Dissecting the latest data

At the end of January, DLUHC (Department for Levelling Up, Housing, and Communities) published the latest collection of data on new social housing lettings in England. 

Covering the 12-month period from April 2022 to March 2023, the data offers several indications of where the sector might be headed and how it is adapting to new and varying challenges. 

For the benefit of our members, we’ve analysed six notable findings from the report, highlighting their significance in the wider housing landscape.

Note: ‘Social lettings’ refers to social rent, intermediate rent such as shared ownership, and affordable rent. 

1. Social rents have been rising, but by less than market rent 

In 2022/23, inflationary pressures caused rents to increase more than in previous years. However, the rate of increase was notably lower for social rents than for market rents.

The median weekly social rent for the period came in at £93, rising from £89 2021/22 (an increase of 4.5%); while the median weekly private rent came in at £206, rising from £173 in 2021/22 (an increase of 19%).

This was before the seven-per-cent rent cap came into force in April 2023, meaning the rates of increase between the two will have likely continued to diverge over the past year.

In theory, this means better value for social renters; but as we’ve seen it has also put pressure on the sector’s finances.

It should be noted that, while social rents experienced a small increase during the 2022/23 period, affordable rents rose by a slightly greater percentage, while intermediate rents rose further still.

2. An overall decline in social lettings 

2022/23 saw a total of 252,000 new social lettings, a fall of six per cent from the previous year. All regions in England saw a decrease in new social lettings in 2022/23 when compared with the previous year; however, some saw a bigger decline than others.

The South East, for example, saw a decline of 9.3 per cent, second only to the West Midlands at 10.3 per cent. At the other end of the spectrum was the South West and Yorkshire and the Humber, at 1.3 per cent and 0.5 per cent respectively.

Of all the regions, the North West had the largest number of new lettings, at 37,400, while the North East had the fewest, at 20,600.

While the number of new social lettings is declining, the total number of homes owned by the sector continues to rise, now coming in at around 4.5 million. This disparity could be due to newly acquired or built homes not yet being let and/or an increased focus on developing and acquiring home-ownership stock.

3. Social homes are staying vacant for longer 

In the years before COVID, the average number of days a social property stayed vacant remained steady at around 20. However, during the pandemic, the number rose to 28, and in 2022/23 it rose further still to 30.

The fact that this figure has not come down could be due to several factors, including the need to ensure properties are free of hazards such as damp and mould – which has become a prominent issue of late – before being relet. 

The data also shows general needs properties stayed vacant for nearly twice as long as supported housing properties – 34 days compared with 18 days – suggesting a greater urgency to turn around supported housing properties. 

The most common reason for a property being vacant before a relet of any rent type was the previous tenant moving to the private sector or into other accommodation. 

4. Social housing churn is higher in the north

The latest data shows that churn – the proportion of social housing stock that is relet each year – is higher in the north of England than the south, with the proportion of stock relet in London coming in at 2.3 per cent, compared with 7.1 per cent in the North East.

One possible explanation is that the high cost of private renting in London (median rent at £346 per week) and the South East discourages social renters from moving from the social housing sector to the private rented sector. In the north, where private rents are on average significantly lower (median rent at £127 per week), social tenants may find greater ease in moving to the private rented sector.

5. General needs housing is slowly becoming more accessible 

In 2022/23, six per cent, or 11,000, of new general needs lettings were in properties built or adapted for wheelchair users, and to the wheelchair user standards M4(3) of the 2010 Building Regulations. 

This figure has steadily risen from 2007/08, when the percentage of new general needs lets built or adapted to wheelchair user standards stood at two per cent for local authorities and at four per cent for private registered providers. 

It should be noted, however, that while the overall figure stands at six per cent, the percentage of local authority general needs properties meeting this standard fell from six per cent to five per cent in 2022/23. 

Comment by Sarah Davis, senior policy and practice officer

“We are still waiting for action by the government following its commitment to increase the accessibility and adaptability standard for all new homes. There are still too many homes being planned and developed to lower standards and which will incur significant costs should adaptations be required. 

“There would be much value in this investment and in fully wheelchair accessible homes, as too many are still stuck in unsuitable homes, to their and society’s significant cost.”

6. Who made the most new lettings? 

In 2022/23, the three housing associations that made the most new lettings were Riverside Housing Group, Anchor Hanover and Sanctuary Housing Association. Combined, these providers provided six per cent of all new lettings during the period, equating to around 16,000 lettings. 

The top 20 largest providers – in terms of new lettings, not homes under management – accounted for more than a quarter of the total new lettings made during the period. What’s notable here is that just one of the 20, Leeds City Council, was a local authority, with the rest of the top 20 comprising housing associations. 

Although the latest statistics show local authorities made a similar number of new lettings in 2022/23 compared to the previous year, the wider trend indicates a gradual decline in the number of new lettings being made by local authorities over time, potentially due to stock sell-offs through policies such as Right to Buy. 

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