The social housing sector is undergoing significant changes, and 2025 is shaping up to be a pivotal year for registered providers and local authorities. With a sharp rise in complaints and payouts reported by the Housing Ombudsman, it’s clear that the landscape is evolving—and not without its challenges.
For social housing providers, the question isn’t just why these changes are happening but, more importantly, what can be done to adapt and thrive.
Why has there been a sharp rise in complaints?
The Housing Ombudsman’s latest report highlights a dramatic surge in complaints, with orders jumping from 4,083 in 2023 to a staggering 16,848 last year. Financial payouts followed suit, increasing from £857,875 to over £4.6 million.
This increase stems largely from the Social Housing (Regulation) Act 2023, which strengthened the Ombudsman’s legal powers and expanded providers’ statutory duties. Complaints now carry higher stakes, with potential consequences ranging from public apologies and financial penalties to downgrades or even de-registration by the Housing Regulator.
The spotlight on providers’ performance has also intensified, with high-profile cases – like the implementation of Awaab’s Law (based on the tragic death of a child due to a housing provider’s failures to tackle damp and mould – fuelling public awareness of tenant rights and driving expectations for better standards.
The challenges providers face
While these developments aim to improve resident experiences, they’ve also created fresh challenges for providers. Balancing new legal obligations with existing pressures – such as funding gaps, resource shortages, and staff retention – can feel overwhelming.
Without proactive measures, providers risk falling behind, exposing themselves to further complaints, reputational damage, and potential sanctions.
But there’s good news: by making smart, strategic changes now, providers can turn today’s challenges into tomorrow’s opportunities.
What action can providers take?
1. Review and update complaint handling policies.
One of the most important steps social housing providers can take is to review and update their policies to align with the Ombudsman’s complaint handling code. Clear, well-documented policies not only streamline internal processes but also serve as valuable evidence if a complaint progresses. They demonstrate your commitment to compliance and show that your organisation takes its responsibilities seriously.
2. Consider appointing an independent board member to oversee your complaints process.
An external perspective can help identify gaps, ensure procedures are followed correctly, and build trust with stakeholders.
3. Embrace the data.
In 2025, data isn’t just a tool—it’s a lifeline. Leveraging technology to manage complaints and maintenance records can help providers stay organised and responsive.
Investing in data management systems allows you to:
- Log complaints and maintenance work in a single platform.
- Track cyclical maintenance schedules effectively.
- Spot trends in complaints to identify recurring issues.
By keeping all property information in one place, you reduce the risk of oversights and ensure nothing slips through the cracks. With clear data, you’ll be better equipped to handle resident concerns promptly and efficiently.
4. Build stronger relationships with residents.
Engagement is key to reducing complaints and improving services. Residents need to feel heard, and creating genuine dialogue can prevent complaints from escalating.
Practical steps to foster better communication include:
- Resident forums and workshops to discuss common concerns.
- Using tenant satisfaction measures to gather feedback.
- Proactively updating residents on repairs, policies, and changes.
A positive shift for the sector
While adapting to these changes may be challenging, the strengthened powers of the Housing Ombudsman offer an opportunity for transformation. By prioritising compliance, investing in technology, and strengthening relationships with residents, providers can foster a culture of accountability and improvement.
In the long run, these changes can lead to better-performing providers, more satisfied residents, and a stronger social housing sector.
We’re here to support you in adapting to these changes and setting your organisation up for success. From reviewing policies to navigating the latest regulations, we can provide the guidance you need.
Get in touch
Natalie is a Partner and Head of Securitisation at Shakespeare Martineau.
With over 15 years experience in the Social Housing Sector, Natalie works with providers of social housing to maximise their assets in both securing property for funding and in portfolio acquisition or disposal. Natalie advises on a full range of security options including refinancing, private placements and bonds and has carried out property health checks for clients who are considering charging or disposing of stock to ensure they get best value.
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