RISING costs and restrictions on rent increases are putting growing pressure on Andium’s financial model, the organisation has warned in its latest annual report.
Despite a record year for building and letting homes in 2025, the social housing provider has “come under sustained pressure” in recent years as inflation and wider economic conditions have driven up costs.
Chief financial officer Peter Styles explained: “The economic environment has driven costs up while we have continued to protect clients from rent increases either through rent freezes or rent increases capped by the wider market conditions or the 4% maximum increase in line with the social housing rent policy.”
Alongside this, income from property sales – which helps reduce borrowing – has been squeezed by a slowdown in the housing market.
Mr Styles pointed to “historic low activity in the housing market, largely driven
by elevated interest rates” and warned that the wider economic outlook “remains uncertain”.
The report also referenced the Review of Social Housing Rents Policy and Income Support which found: “For social housing providers, rising operational and capital costs, combined with capped rent uplifts, are outpacing revenue growth and increasing pressure on their long-term sustainability.”
Despite this, Andium delivered what it described as a record year in 2025. A total of 363 new homes were completed, while 583 new tenancies were created – the highest level in its history.
A further 154 Islanders were supported into home ownership through assisted purchase schemes, with around £13 million in deferred purchase assistance helping Islanders onto the property ladder.
The increase in supply has had a significant impact on waiting times. Around 84% of priority applicants were housed within 12 months, compared with waits of more than three years in the past.
Chief executive Lindsay Wood said: “In a challenging market, these results demonstrate the strength of our model, offering rental and purchase opportunities at below market prices for Islanders who might otherwise live in less suitable accommodation or leave the Island.”
The organisation manages more than 5,000 homes, with a property portfolio valued at approximately £1.48 billion.
Throughout last year, Andium generated £70 million in rental income, invested £97 million in capital projects, and returned £28.7 million to the government.
The firm entered 2026 with 527 homes already under construction or in contract, alongside a growing focus on refurbishing older housing stock.
