The updated Housing SORP 2026 introduces significant changes to financial reporting for housing associations. Watch our on-demand webinar to understand the changes to lease accounting and income recognition and discover how your organisation can begin preparing for implementation.

The implementation date for the Housing SORP 2026 is for accounting periods beginning on or after 1 January 2026, meaning comparative periods are already impacted and preparation should be well underway for many housing associations.

Our on-demand webinar explores the key areas that housing providers should be focusing on now. The most significant changes for many organisations include:

• Lease accounting – The Housing SORP 2026 requires organisations to recognise leased assets on the balance sheet as a ‘right of use’ asset, alongside a corresponding lease liability reflecting the discounted value of future payments. For housing associations with leased property or equipment, this represents a fundamental shift in accounting treatment and will require careful identification of leases, data gathering, and system readiness.

• Income recognition – The updated framework introduces a structured approach to recognising income, including applying principles aligned with the five-step model for exchange transactions and assessing performance obligations. Housing providers will need to review income streams – including rental income, service charges, and contracts – to ensure income is recognised in line with delivery and contractual terms.

• Narrative reporting and governance – The new SORP places greater emphasis on transparency and the connection between financial reporting, strategy, and governance. Housing associations will need to strengthen narrative reporting, with an increased focus on areas such as business model, key risks, governance, and future plans, ensuring greater alignment with operational activity and stakeholder expectations.

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Lease accounting

Income recognition

Practical implementation and transition readiness