Introduction 

The UK housing sector is facing numerous challenges during 2025 that require foresight and in some cases action. Among these, the ability to manage the significant expected costs as a result of the implementation of Awaabs Law, the review of the Decent Homes Standard and the Housing Health & Safety Rating System – all in addition to the existing financial pressures arising from Repairs, Net Zero – all with a cost impact, with limited income to offset the costs.  Board members play a critical role in challenging and guiding the business plans of housing associations and as such there is a real need for board members to scrutinise existing business plans and arguably more importantly to seek robust and independent assurance over their sustainability. 

The Landscape

Housing associations and their board members are under significant pressure to deliver value for money, ensure financial resilience, and meet the needs of their communities and tenants.  

Before delving into specific strategies, it is essential to understand the financial landscape in which housing associations operate. With increasing development costs, priorities around net zero, increasing demand for repairs, fluctuating interest rates, and increasing regulatory requirements, the risk of financial failure is very real. Therefore, board members must be well-versed to make informed decisions. 

Coming over the hill 

Awaab’s Law, set to take effect from October 2025, introduces strict requirements for social landlords to address damp and mould hazards and other housing safety concerns within fixed timescales. While the law aims to improve living conditions, it also brings significant cost considerations for social landlords.  Such considerations include; 

  • Compliance Costs – Social landlords must invest in inspections, repairs, and maintenance to meet the new legal obligations. Emergency repairs, including damp and mould issues, must be addressed within 24 hours, which will by their nature, together with the current sector performance around repairs, require additional staffing and resources. 
  • Infrastructure Upgrades – Many properties may require structural improvements to prevent recurring issues like damp and mould. This could involve ventilation system upgrades, insulation improvements, and better heating solutions. 
  • Legal and Administrative Costs – Landlords will need to update tenancy agreements, train staff, and implement new reporting systems to ensure compliance. Failure to meet the requirements could lead to legal penalties and reputational damage. 
  • Long-Term Investment – The phased implementation means the sector must prepare for additional hazards beyond damp and mould, including excess cold, fire risks, and hygiene hazards by 2026, and further safety concerns by 2027. 

Ultimately social landlords and ultimately boards, will need to strategically plan their budgets to meet these new obligations while balancing affordability for tenants. 

The Decent Homes Standard (DHS) sets minimum living conditions for social housing, ensuring properties are safe, warm, and functional for tenants.  The government has committed to consulting on a proposed new standard in early 2025, following previous reviews and consultations. The updated standard aims to address damp, mould, and other hazards in social housing while incorporating modern expectations for energy efficiency, safety, and living conditions. As such, there are significant cost considerations in meeting these requirements. 

  • Structural Repairs & Maintenance – Landlords must fix damp issues, repair roofs, and address subsidence, which can cost between £5,000 to £20,000 per property. 
  • Energy Efficiency Upgrades – Compliance with Minimum Energy Efficiency Standards (MEES) requires insulation improvements, boiler replacements, and double glazing, costing £2,000 to £8,000. 
  • Modern Facilities & Services – Kitchens and bathrooms must be modernised, with refurbishments ranging from £5,000 to £15,000 for kitchens and £2,500 to £7,000 for bathrooms. 
  • Legal & Administrative Costs – Landlords must update tenancy agreements, train staff, and implement compliance systems to meet DHS requirements. 
  • Fire Safety & Security Compliance – Installing smoke alarms, carbon monoxide detectors, and secure locks can cost between £500 to £2,500. 

The Housing Health and Safety Rating System (HHSRS) is a risk-based assessment tool used to evaluate housing conditions and identify potential hazards. Further updates to the HHSRS are expected as part of 2025 housing legislation changes, alongside the Decent Homes Standard review and the implementation of Awaab’s Law. Social landlords must ensure their properties meet HHSRS standards, which will involve significant cost considerations. 

  • Property Inspections & Assessments – Regular HHSRS inspections are required to identify hazards such as damp, excess cold, fire risks, and structural defects. Hiring qualified assessors and conducting surveys can be costly. 
  • Remedial Works & Repairs – Addressing Category 1 hazards (serious risks) may require major renovations, including roof repairs, heating system upgrades, and improved ventilation. 
  • Energy Efficiency Improvements – Compliance with Minimum Energy Efficiency Standards (MEES) often requires insulation upgrades, boiler replacements, and double glazing, which can cost £2,000 to £8,000 per property. 
  • Fire Safety & Security Measures – Installing smoke alarms, carbon monoxide detectors, and secure locks can add £500 to £2,500 to compliance costs. 
  • Legal & Administrative Costs – Landlords must update tenancy agreements, train staff, and implement compliance systems to meet HHSRS requirements. 

Ongoing Maintenance & Monitoring – Regular property checks, pest control, and damp prevention require continuous investment. 

Financial Support 

To ease some of the financial burden, landlords can explore 

  • Local authority improvement grants 
  • Green Homes Grant 
  • Tax relief on property repairs 
  • Government funding for energy efficiency upgrades 
Independent Assurance 

Crucially, a Board should be requesting independent assurance over the association’s business plan – its robustness, its accuracy and its viability, given the financial impact of the challenges that the sector is facing.  Independent Assurance provides critical validation, risk mitigation and perhaps importantly the confidence, that the business case is robust, credible, and aligned with strategic objectives.  

Independent assurance isn’t just about finding faults—it also helps to refine strategies and enhance governance. 

Conclusion 

In this challenging environment, assurances surrounding the robustness of an organisation’s business plan has arguably never been so prevalent for the Board, to ensure that their role can be effectively fulfilled. 

TIAA Ltd offers comprehensive services aimed at supporting housing sector board members in their critical role of challenging business plans to ensure cost reductions and increased income. Through expert consultation, audits, risk assessments, and strategic advice tailored to the unique needs of housing associations, TIAA Ltd assists board members in identifying opportunities for financial optimisation and efficiency. The tools – including BRIXX – and methodologies enable board members to scrutinise business plans rigorously, ensuring alignment with the association’s mission and strategic goals. By fostering a culture of accountability and continuous improvement, TIAA Ltd empowers board members to make informed decisions that bolster the financial health and sustainability of the sector.