The Regulator’s annual analysis of loan portfolio returns for the period April 2025 to March 2026 revealed that 31 RSLs secured £304 million of new finance during 2025/26, down from £563m in the previous year. Most new borrowing (88%) was used to support the building of new homes.

Looking ahead, RSLs expect to increase borrowing by a further £1.7 billion over the next five years to support investment in new and existing homes.

Shaun Keenan, assistant director of financial regulation, said: “RSLs have generally maintained strong liquidity despite ongoing challenges, and most remain well placed to access private finance. However, future investment needs, including maintaining existing homes, delivering new homes and meeting the proposed Social Housing Net Zero Standard, may increase pressure on finances and borrowing over time.

“RSLs’ access to finance helps support investment in homes, repairs, improvements and services for tenants, and RSLs expect borrowing to increase over the next five years. Continued lender and investor appetite suggests ongoing confidence in the sector, its underlying business model and Scotland’s regulatory framework.

“We will continue to monitor financial performance and treasury management, engaging with RSLs where we identify emerging risks or weaknesses.”

The Regulator has also published a short summary explaining what the findings of this report mean for tenants.