BPHA steps up spend on existing stock and new build

Housing association BPHA has increased its spend on improving existing homes and development in the first half of the year.

The 20,000-home landlord, in an unaudited update, reported it spent £39.5m on developing new homes in the six months of the year, up 51% on the £26.2m posted for the previous year.

Bedfordshire-based BPHA said it is continuing to work with Bedford Borough Council and Homes England on plans to build 400 new homes in Bedford town centre.

Richard Hill, chief executive of BPHA said “this will remain an important focus over the remainder of the year.”

Its completions in the half-year, however, fell from 119 to 69 homes.

BPHA also increased its spend on existing homes from £19.3m to £22.1m year-on-year, including a rise in capital spending from £9.2m to £10.5m.

The housing association said this reflects its commitment to ensure homes “meet the high BPHA standard, that we have set for lifecycle replacement.”

Its overall turnover increased from £68.2m to £71.2m. The drop in development resulted in first tranche shared ownership sales falling from 54 to 27.

However, BPHA said this was offset by a rise in staircasing income. Its operating surplus declined slightly from £31.2m to £30.1m due to increased costs, while its pre-tax net surplus was £13.4m compared to £13.7m in the same period last year.