G15 landlord completes just 10 homes as it continues to dispose of non-core stock
A2Dominion did not start any new homes last year and completed just 10 as part of its strategic shift to focus on improving existing homes.
The 39,000-home G15 landlord confirmed the figures in its financial statements for the year to 31 March.
A2Dominion said it applies strict hurdle rates to “ensure that the return on any development is commensurate with risk.”
It said: “In recent years it has proved very challenging to meet these hurdles and, accordingly, during the year we did not commit to any new starts. This reduction has allowed us to focus on the redevelopment and improvement of our customers’ existing homes.”
The landlord said however it is aiming to recommence new starts on site in 2026/27. It added: “We are working towards bringing forward a regeneration-focused pipeline of 400 to 500 units in the next five years and a further 600 to 800 units in our 10-year plan.”
A2Domion’s overall turnover fell 19%, from £422m to £342m. Its social housing lettings income remained flat at around £265m. Its shared ownership first tranche sales income fell by £10.2m, while development income and land sales revenue dropped £42m and £30m respectively.
The group’s overall surplus fell from £116.4m to £1.7m, while its operating surplus reduced from £185.7m to £68.8m.
The drop was largely due to the sale of 340 temporary housing units to Westminster council in the previous year which boosted income from the sale of fixed assets by £99.5m.
A2Dominion continued this year to dispose of “non-core assets” generating a surplus of £17m. This included the disposal of a further 21 homes in a second wave of sales to Westminster, along with two further private rental assets sold for £30m and the sale of 17 homes for £12m.
It said: “During 2026/27, we will continue to market private rental homes for disposal over the medium term. The team regularly reviews the optimal route to market for each scheme and prevailing market conditions to ensure the best possible value is realised for the group.”
A2Domion spent £83.5m on responsive repairs, planned maintenance, and major works in the year, down from £91.4m in 2024/25.
The group achieved an overall operating margin of 14.2% against a target of 18.9%. It also missed its target for social housing margin (22.4% against a target of 23.2%) and EBITDA MRI interest cover (79.9% against 93.5%).
It said: “The operating margin has fallen compared to 2025 for both the group and the G15 median, and remains below the sector benchmark. The operating margin was 4.7% below our internal target, primarily due to higher-than-budgeted expenditure on both routine and planned repairs.”
Alan Collett, chair of A2Dominion, said: “We recognise challenges continue across our sector, including higher operational costs, slower sales and wider economic uncertainty. The group continues to look at various ways to mitigate these external pressures and is assisted by a balance sheet that remains robust, underpinned by strong liquidity and over £3.5 billion in assets and investments.”
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