Data-Driven Solutions Imperative to Negate Rising Repairs Costs Threatening Financial Stability of English HAs
Mobysoft has responded to the recently published Research & Analysis of 2024 Global Accounts of Private Registered Providers report emphasising the need for housing providers to harness data and technology to effectively tackle the challenges highlighted by the government paper.
The Regulator of Social Housing’s Research & Analysis of 2024 Global Accounts of Private Registered Providers report emphasises the immense financial pressures faced by English housing associations (HAs), with repairs and maintenance costs reaching an all-time high of £5.5bn in 2024—a 13% increase (£1bn) from the previous year and 55% above pre-pandemic levels. Surplus as a percentage of turnover has also dropped sharply by 47.7%, falling from 17.7% in 2023 to 9.3% in 2024, mainly driven by a £1.4bn reduction in fair value*. As annual repairs spending is forecast to rise to £10bn over the next five years, Mobysoft has stressed the need for HAs to harness data and technology to overcome threats to financial stability.
Mobysoft Response: Leveraging Technology to Combat Escalating Costs
“The findings of the Global Accounts report are further evidence that the sector is experiencing some of the most difficult conditions since the 2008 recession,” says Mobysoft CEO, Paul Evans. “The tough environment housing providers face is illustrated by repairs expenditure growing faster than rental income, which is squeezing projected Earnings Before Interest, Tax, Depreciation, and Amortisation, Major Repairs Included (EBITDA MRI). As a result, there is an onus on providers to embrace technology and data to help mitigate these growing pressures, regain control of their budgets, and continue to meet tenant needs.”
“Mobysoft’s AI-driven solutions, including RepairSense and RentSense, equip housing associations with the tools to mitigate rising costs, comply with legislation, and improve tenant outcomes and services”.
Reducing Repairs Costs with RepairSense
Rising repairs volumes, driven by damp and mould issues, compliance, and catch-up repairs, have forced providers to reprioritise resources, delaying larger repair programmes. Mobysoft’s RepairSense uses AI, to analyse repairs data, enabling housing providers prioritise urgent repairs effectively, with customers using the solution for over 12 months consistently registering all upper quartile performers with an average score of over 80% for their TSMs.
Safeguarding Income with RentSense
As sector debt rises to £99.7bn and interest costs increase by 16% to £4.4bn, financial resilience is critical. RentSense, Mobysoft’s income analytics platform, empowers housing providers to safeguard what is often its main revenue source; rental income.
Recent data indicates that RentSense customers continue to outperform the sector whilst social housing providers not using the platform saw their arrears rise by around 3% from 2023 to 2024. RentSense users saw a reduction in arrears with our top ten performing RentSense customers seeing their arrears fall by 29.3%.
Fostering a Data-Driven Culture
“Becoming a data-driven organisation is no longer a choice—it’s a necessity,” says Mr Evans. “With EBITDA MRI interest cover falling to 88% and projected to remain below the critical 100% threshold, housing providers need to leverage data to make smarter decisions. Our solutions help navigate this challenging landscape while prioritising tenant satisfaction and compliance.”
*Fair value in housing association finances refers to the price that an asset would sell for under current market conditions, assuming both the buyer and seller have reasonable knowledge of the asset and are willing to trade without pressure. For housing associations, this concept is particularly important when valuing properties and other assets.