The Regulator of Social Housing (RSH) has issued a call for evidence on the future direction of its economic regulation, set out in its discussion paper ‘More and better social homes’. The exercise marks the first stage in a wider reform programme, with a formal consultation on revised economic standards expected in 2027.

Rather than proposing immediate rule changes, the RSH is seeking stakeholder views on how its approach to governance, financial viability and value for money should evolve to enable the delivery of more and better social homes, whilst maintaining sector stability. This insight summarises the key themes emerging from the call for evidence and considers their potential implications for registered providers (RPs).

The case for change

The RSH makes clear that the current economic regulatory framework, largely unchanged for a decade, no longer reflects the realities of today’s sector. Since the last comprehensive review, the sector has experienced:

• increased scale and consolidation, with fewer but larger landlords;
• growing complexity, including the emergence of for-profit providers;
• significantly higher investment in building safety, decency and energy efficiency; and
• sustained financial pressure, with margins more than a third lower than ten years ago.

Landlords are also being expected to deliver both new supply and improvements to existing stock amid higher borrowing costs and economic uncertainty.

The RSH’s central concern is that its existing regulatory model must adapt to support growth, resilience and innovation, whilst continuing to protect tenants and public investment. The discussion paper is structured across three core sections, each accompanied by a series of prompts for stakeholder feedback.

Discussion prompt 1: ‘essentials’ for social landlords

A significant part of the call for evidence focuses on defining the core characteristics that landlords must demonstrate to operate effectively in the future.

The RSH identifies five ‘essentials’ and seeks views on how it can further promote these:

• Being centred on social housing – ensuring social housing remains the primary purpose of the organisation
• Independence and autonomy – enabling landlords to make and implement decisions in the interests of tenants
• Financial sustainability – demonstrating resilience without reliance on uncertain third-party support
• Ability to deliver effectively – underpinned by strong governance and operational capability
• Capability to fail safely – ensuring that, in the event of failure, tenants and homes are protected

The emphasis on ‘failing safely’ reflects a notable shift. The sector has historically avoided major losses, but the RSH is demonstrating a greater willingness to confront the reality that failure may occur, and to ensure frameworks are durable enough to manage it.

The RSH is also exploring how these expectations should apply to new entrants and innovative funding models, including structures involving equity investment.

Discussion prompt 2: strengthening accountability and delivery

The second major theme is a potential shift towards more explicit and measurable accountability for delivery. The RSH is requesting views on how it can further drive landlord accountability in the delivery of more and better homes. In particular, it invites feedback on:

• more prescriptive expectations for business planning;
• requirements for landlords to set clear, testable targets for development and asset improvement;
• greater scrutiny of whether plans genuinely maximise delivery of more and better homes; and
• requirements to appraise and publish development capacity and capability.

In addition, the RSH is exploring:

• standardised stress testing and the publication of results for larger providers;
• enhanced oversight of disposals of social housing, focusing on long-term value retention; and
• stronger expectations around efficiency and cost control.

Taken together, these proposals suggest a move away from high-level, principles-based regulation towards oversight that is more explicitly focused on performance and driven by outcomes.

Discussion prompt 3: more targeted and data-driven regulatory approach

The RSH is also considering significant changes to how it regulates in practice. Views are being sought on the RSH’s intention to become increasingly targeted in its regulatory approach, with key proposals including:

• greater risk-based targeting, focusing regulatory effort on higher-risk landlords;
• increased use of data and predictive modelling to identify emerging risks;
• more granular regulation, including potential scrutiny below landlord level to address localised underperformance;
• enhanced engagement with strategically important providers due to their systemic importance; and
• earlier and more active intervention in higher-risk small and newly registered landlords.

The RSH also demonstrates a willingness to:

• act more quickly and assertively where weaknesses persist;
• strengthen expectations around data quality and transparency; and
• promote collaborative innovation across the sector.

This reflects a broader shift towards a more proactive and interventionist regulatory model, underpinned by improved data and analytics.

Capsticks’ view: key considerations for registered providers

Although the proposals are at an early stage, several practical implications are already emerging for RPs:

• Increased scrutiny of strategy and delivery – Boards should expect greater challenge on whether their business plan genuinely delivers growth, quality and value.
• Stronger emphasis on measurable outcomes – The direction of travel suggests more explicit targets, benchmarking and transparency – particularly around development, efficiency and resilience.
• Greater focus on governance and organisational structure – Expect renewed attention on autonomy, control of assets and alignment between funding models and tenant interests.
• Heightened expectations around risk and resilience – Enhanced stress testing, clearer financial metrics and more visible contingency planning are likely.
• A more segmented regulatory experience – Providers may see significantly different levels of engagement depending on their risk profile, size and strategic importance.

Conclusion

The RSH’s call for evidence represents an important milestone in the evolution of economic regulation in the social housing sector. Detailed proposals are yet to emerge, but we can expect for the future:

• a stronger focus on delivery on new and improved homes;

• enhanced accountability and transparency; and

• more targeted, data-led and assertive regulation.

RPs should treat this exercise not only as an opportunity to shape future policy, but also as an early signal of the expectations that are likely to underpin the next generation of economic standards.

Written contributions to the invitation for evidence must be provided by 30 September 2026.

How Capsticks can help

Capsticks’ Housing team supports with drafting and reviewing internal policies through our Governance Support Service, dealing with issues of non-compliance and regulatory intervention, as well as providing broader support across the social housing sector. If you have any queries around what's discussed in this article, and the impact on your organisation, please speak to Partner Darren Hooker or Associate Georgia Moon to find out more about how Capsticks can help.