The Regulator of Social Housing has published an updated version of the Accounting Direction for Private Registered Providers (PRPs) of Social Housing in England. The revised Direction applies to accounting periods beginning on or after 1 January 2026, although earlier adoption is encouraged.
The 2026 update replaces and builds upon the Accounting Direction 2022, which will continue to apply to accounting periods beginning before 1 January 2026.
While the changes are relatively limited in scope, they reflect recent updates to the Housing SORP and FRS 102 and provide additional clarity in certain disclosure areas. Registered providers should ensure they understand the revised requirements ahead of their next reporting cycle.
Key Changes in the 2026 Accounting Direction
1. Updated References to the Revised SORP and FRS 102
A number of references throughout the Direction have been updated to align with the revised Housing SORP and the latest version of FRS 102.
One notable example relates to the disclosure requirements within Note B: Particulars of turnover and operating expenditure from social housing lettings. The line item previously referred to as lease costs now specifically references the revised lease accounting requirements under FRS 102.
The Direction confirms that these costs relate to:
“leases under 12 months or for which the underlying asset is of low value, as permitted by paragraph 20.5 of FRS 102.”
This amendment reflects the updated lease accounting framework and provides greater consistency between the Accounting Direction and the underlying accounting standards.
2. Annual Report Requirements Extended to Smaller Providers
The terminology used within the Direction has been updated to align with the revised Housing SORP.
The previously referenced Strategic Report is now referred to as the Annual Report, reflecting the language used within the latest SORP guidance.
More significantly, the requirement to prepare an Annual Report has been extended to providers owning or managing 1,000 or more homes, compared with the previous threshold of 5,000 or more homes.
This change means a larger number of registered providers will now need to consider the content and presentation of their Annual Report, including narrative reporting around performance, governance, strategy and future plans.
3. Clarification on Remuneration Disclosures
The updated Direction also provides additional clarity regarding remuneration disclosures.
Previously, some uncertainty existed around whether the disclosure of remuneration exceeding £60,000 in £10,000 bands applied to all employees or only certain senior staff.
The revised Direction confirms that this disclosure requirement applies solely to Key Management Personnel (KMP) and not to employees generally.
This clarification should assist providers in applying the disclosure requirements consistently and may reduce unnecessary reporting where broader staff disclosures had previously been considered.
What Should Registered Providers Do Now?
Although the amendments are not extensive, finance teams should review the updated Direction alongside the revised Housing SORP and FRS 102 requirements to ensure reporting remains compliant.
In particular, providers should:
- Assess whether the new Annual Report threshold applies to their organisation.
- Review lease-related disclosures to ensure they align with the revised FRS 102 requirements.
- Confirm remuneration disclosures are focused on Key Management Personnel where appropriate.
- Consider whether early adoption would be beneficial for the organisation.
Final Thoughts
The 2026 Accounting Direction largely serves to align reporting requirements with wider developments in the Housing SORP and FRS 102. While the changes are relatively modest, they provide useful clarification and will affect certain disclosure requirements, particularly around Annual Reports and remuneration reporting.
Registered providers should ensure they understand the revised requirements well in advance of their next reporting period and seek advice where necessary to ensure a smooth transition.
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