No More Repair Despair: Why In-House Repairs Are Making a Comeback in Social Housing

By Luke Beard · 3 October 2025

The choice between outsourcing repairs and maintenance or managing them in-house is a difficult decision for many landlords. Social landlords are no strangers to acronyms: two commonly used terms in this space are DLO’s (Direct Labour Organisation) and IHC’s (In-House Contractor). For the purpose of this article, we’ve grouped both under a single, simplified term: ISP (Internal Service Provider), to reflect the shared principles and benefits of delivering repairs and maintenance through directly managed teams.

While both outsourced and in-house approaches have their advantages, it’s clear to see that ISPs have made a major comeback in recent years.

Over the past 18 months alone, 30-40 housing providers across the UK have brought repairs services back under direct control. By 2023, 61% of UK landlords operated an in-house team (up from just 50% in 2013).

So, what’s driving this shift? And more importantly, could an Internal Service Provider (ISP) be the right move for your organisation?

The Case for Bringing Repairs In-House

1. Better Quality, Better Results

When you manage your own team, you set the standards. There’s no middleman, no contractual disputes, and no hoping an external contractor shares your values.

The data backs this up:

• Tenant satisfaction with repairs: 81.2% for in-house teams vs 78.0% for outsourced services (Housemark)
• Overall landlord satisfaction: 81.1% in-house vs 80.8% outsourced

That might seem like a small gap, but in social housing, every percentage point matters.

2. Happier Residents, Stronger Relationships

Repairs are the most frequent touchpoint between landlords and tenants. Get them right, and you build trust. Get them wrong, and you lose confidence fast.

In-house teams deliver:

• Faster response times – no waiting for contractor availability
• Personal accountability – operatives who know your residents and properties
• Better communication – direct lines between residents and your team

When residents see the same faces fixing their homes, relationships improve.

3. Real Cost Savings Over Time

Yes, setting up an ISP requires investment. But the long-term savings can be substantial.

Here’s why:

• VAT savings on labour – Labour typically accounts for 60-70% of repairs costs. In-house teams don’t attract VAT on labour, which can mean significant annual savings
• Reduced overheads – Direct resource management eliminates contractor profit margins
• Better budget control – Predictable costs with less exposure to market fluctuations

Over a 5-10 year period, these savings add up considerably.

4. Control When You Need It Most

Outsourced contracts can be rigid. Priorities shift, emergencies arise, and suddenly you’re battling schedules and availability.

In-house teams offer:

• Immediate mobilisation for urgent issues
• Direct control over scheduling and prioritisation
• Flexibility to adapt to changing demands without renegotiating contracts

This agility is especially critical when dealing with damp and mould, disrepair claims, or compliance deadlines.

5. Building Your Own Expertise

External contractors come and go. Knowledge walks out the door when contracts end.

With an ISP, you invest in your people:

• Train operatives to understand your specific stock
• Build institutional knowledge that stays within the organisation
• Develop specialists who know your properties inside out
• Create career pathways that improve retention

This expertise becomes a strategic asset, not just an operational function.

Awaab’s Law: Why In-House Teams Are Better Positioned for Compliance

From October 2025, Awaab’s Law requires landlords to investigate and fix damp, mould, and health hazards within strict legal timeframes. In-house teams have a clear advantage in meeting these obligations: they can mobilise immediately without contractor coordination delays, maintain direct oversight of scheduling and quality checks, and build resident trust through familiar faces that improve access and engagement.

Integrated case management allows seamless coordination between housing officers and repairs teams, while standardised reporting ensures robust evidence collection for audits. Perhaps most importantly, in-house workforces can embed a zero-tolerance culture toward health hazards and when compliance failures can result in legal action and reputational damage, having direct control is necessary.

Is an In-House Service Right for You?

Bringing repairs in-house isn’t a one-size-fits-all solution. It works best when:

• You have sufficient scale to support a dedicated workforce
• Leadership is committed to long-term investment in people and systems
• There’s appetite for building internal capability rather than relying on external contractors
• Compliance, quality, and resident satisfaction are strategic priorities

Making the Transition Successfully

Determining whether an in-house model is right for your organisation requires:

A thorough business case with realistic cost modelling
Clear strategic vision aligned with organisational goals
Expert mobilisation support to avoid common pitfalls

We specialise in helping social landlords evaluate, design, and implement in-house repairs services that deliver results.

From business case development to workforce planning and operational setup, we ensure your transition is strategic, sustainable, and successful.

Contact us today