By Gows Shugumaran, Director – Social Housing
After a packed few days in Liverpool at the NHF Conference last week, we have been reflecting on some of the key themes shaping the sector and where we go next. As always, the conference was a useful reminder of the sector’s unique collective commitment – not just to solve the challenges in front of us but to do so with a long-term, purposeful mindset.
Here are a few takeaways from the week:
1. Resilience under pressure
The sector’s credit outlook remains constrained, and business plans are under increasing strain as we head into the next planning cycle. What stood out, however, was the determination across finance teams to optimise plans without compromising services to residents.
Customer service remains front and centre. The challenge is clear: how do we deliver more – more efficiently, more responsively – in the current environment without additional resources? This is shaping conversations at both Board and Executive levels, prompting organisations to rethink structures, priorities, and delivery models in response to what can only be described as a ‘perfect storm’ of financial and operational pressures.
2. Political Climate: Housing remains a priority amid uncertainty
There’s a clear recognition that the Government hasn’t got everything right, but there was also a realistic appreciation of the complex geopolitical and economic environment facing any administration today. Housing continues to feature prominently in national policy conversations. The sector remains well-positioned to influence, provided we continue to articulate the social and economic case for investment clearly. The key sector asks for government remains long-term certainty, either through rent settlement or rent convergence – ideally both.
3. AI and Digital Innovation: not a silver bullet, but a real opportunity
AI and digital tools are not a silver bullet, but there’s increasing confidence that they will play a critical medium-term role in transforming the way we work. From resident engagement to operational analytics, the consensus is that digital innovation has the potential to ease pressure on stretched teams, improve service quality, and unlock cost efficiencies. The question is no longer ‘if’ – but ‘how quickly and effectively organisations can adopt and embed these tools’.
4. Repairs & Maintenance – reinventing delivery
Maintenance remains a persistent challenge, particularly around contractor availability, responsiveness, and service quality. Several housing associations are actively exploring Direct Labour Organisations (DLOs) or hybrid partnership models as a way to improve tenant outcomes while retaining local delivery capability. This area is fast becoming a key battleground for reputational risk but also an opportunity for sector innovation.
5. Off-balance sheet innovation
As balance sheets become increasingly constrained, more housing associations are turning to off-balance sheet structures – initially focused on unlocking development, but now evolving toward funding reinvestment in existing homes and services. These models offer much-needed flexibility, but also demand strong governance and clear commercial alignment to ensure they deliver lasting value.
With balance sheet capacity under strain, housing associations are continuing to explore more commercial/alternative models around delivering more value for residents. This is a space where advisors can also play a key part in bringing thinking from other sectors.
6. Evolving funding strategies
The funding landscape is shifting. Alongside traditional bank and capital markets activity, we’re seeing:
- The need to reshape traditional funding models to find value for the sector. In the current high rates environment, the sector is looking to new funding models to unlock the capacity to do more.
- A trend toward shorter-dated issuance as borrowers seek to find value in the yield curve
- Growing equity participation, with private capital taking a deeper interest in affordable housing – especially in London – emerging as active partners, with significant potential for collaboration.
7. Mergers and regional partnerships
M&A remains a live theme, but the focus is shifting. Rather than consolidating for scale alone, there’s growing interest in regional partnerships that offer operational efficiencies and deeper local impact. There is an acute desire to desire to unlock value in a more targeted, place-based way.
On the note of partnership, there was generally a strong sentiment around partnership working across all stakeholders who attended the conference. Lenders and advisors all share the same sentiment – we want to support the sector to do more.
8. Stewardship and long-term thinking
Across the conference, there was a strong sense of stewardship – a recognition that we are custodians of something bigger. It’s not just about getting through the next year’s 10-30 years of the plan – it’s about building resilient organisations that will serve future generations of residents and sector leaders. This long-term thinking is driving everything from asset investment strategies to organisational culture. It’s a powerful reminder of what makes this sector unique.
9. Sustainability is here to stay
Despite a shifting political landscape and near-term financial pressures that have, in some cases, deprioritised sustainability initiatives, there was broad consensus across panels that ESG and sustainability reporting are not going away. Not least as risk profiles are predicted to shift significantly on climate issues, and some providers are already feeling the effects – particularly in the reinsurance market.
Final thought: Despite the headwinds, the mood across the Conference was not one of fatigue – but of determination, clarity, and collective intent. The challenges we face are significant, but so is the opportunity to lead with purpose. As a sector, we are again proving that resilience isn’t just about weathering storms. It’s about evolving through them, together.
