Pay Rise Survey for Housing 2026: What housing associations are planning this year

We have published our Pay Rise Survey for Housing 2026, drawing on responses from housing associations across the UK to provide an evidence-based view of pay awards, reward priorities and people challenges for the year ahead.

Now in its sixteenth year, the survey remains a trusted reference point for HR and reward professionals as they finalise 2026 pay reviews.

Key findings at a glance

• 2025 pay awards clustered at 2.5%
  The average and median pay rise awarded in 2025 were both 2.5%, with most awards falling between 2.0% and 3.0%.

• Higher pay rises planned for 2026
  The median and average predicted pay rise for 2026 is 3.5%, a notable increase on last year’s expectations. The central 50% of responses fall between 3.0% and 3.8%, reflecting continued cost-of-living pressure and labour-market competition.

• Targeting lower-paid employees remains common
  Nearly a quarter of organisations plan to differentiate pay awards in 2026, often to maintain alignment with the Real Living Wage or National Minimum Wage. Several respondents described tapered approaches, with higher percentage increases for lower-paid roles.

• Pay benchmarking back in focus
  43% of organisations are planning pay benchmarking activity in 2026, up sharply on last year. This reflects the need for confidence in market positioning as pay decisions face greater scrutiny from employees.

• Wellbeing provision has stabilised
  Health and wellbeing initiatives are now firmly embedded across the sector, with Employee Assistance Programmes and wellbeing strategies viewed as having the greatest impact. Financial wellbeing provision continues to grow, albeit more gradually.

• AI is emerging – but impact remains limited
  While awareness of AI in reward has increased slightly, only 14% of organisations currently use AI tools in pay and reward activity, and few expect it to materially affect reward practice in 2026.

• Hybrid working is the norm
  Almost all organisations operate hybrid or remote working arrangements and most report no direct impact on pay strategy.

Why this matters

As housing associations navigate rising employment costs, regulatory pressure and heightened employee scrutiny, pay decisions must be fair, transparent and defensible. This year’s survey shows a clear shift back towards robust benchmarking and structured reward strategies.

If you have any questions or would like to discuss how these trends might impact your pay and reward strategy then do get in touch - we're happy to help!