Developing a Pooled Insurance Scheme for Social Housing Repairs: A Feasibility Study on Reducing Costs and Transitioning to Preventative Maintenance

The social housing sector in the United Kingdom faces growing challenges from aging infrastructure, constrained budgets, and inefficient maintenance practices. Reactive maintenance models dominate, accounting for 65% of local authority repair budgets, with emergency repairs costing up to five times more than planned maintenance. Delayed repairs further exacerbate the situation, with tenant dissatisfaction exceeding 40% in some regions. This study endeavours to develop a pooled insurance scheme for social housing repairs and assess its feasibility in reducing repair costs and fostering a shift from reactive to preventative maintenance. Using a theoretical framework, this study combines secondary data analysis, a review of existing literature, and qualitative interviews with stakeholders, including housing officers, tenants, and insurance providers. The analysis focuses on the potential benefits of risk sharing, operational efficiency, and the impact on tenant satisfaction. Quantitative data on repair costs and insurance models are evaluated to determine the scheme’s financial viability and scalability. Results suggest that a pooled insurance scheme could reduce repair costs by 20%, equating to potential annual savings of £1.2 million per council. Tenant satisfaction could improve by 25%, driven by faster repair turnaround times (average reduction of 40%) and enhanced claims management transparency. A shift from reactive to preventative maintenance is anticipated, with preventative claims projected to increase by 30%. This study concludes that a pooled insurance model offers a viable and sustainable solution to the challenges of social housing maintenance. If implemented nationally, it could generate annual savings of £1 billion, reduce maintenance inefficiencies, and improve housing quality. Future research should address policy integration and explore opportunities for aligning the scheme with the UK’s climate resilience and sustainability goals.