Clarion on track to hit 3,000 homes-a-year target ‘within three to four years’

Clarion is on track to meet its 3,000 homes-a-year target within the next three to four years, its chief development officer has said.

The £1bn-turnover housing association has seen its annual completions fall over the past few years, from around 2,200 in 2021/22 to 1,460 last year.

However, Richard Cook, chief development officer at the G15 landlord, told Housing Today the landlord has been rebuilding its capacity and is increasing starts year-on-year, meaning completions will ramp up after delays due to extra costs. 

He said: “We started more than 2,000 homes last year, which is the highest we’ve done since the merger [of Circle and Affinity Sutton in 2016], which is really positive with all the challenges that is going on.

“We should have done that probably about three years ago, except for the Building Safety Regulator and all the [regulatory] changes and everything else – that has really delayed our programme.”

Cook said Clarion is currently the “largest developer in London” in terms of starts with 1,200 in the capital last year, which he said was due to it pivoting his programme predominantly towards social rent, reducing its exposure to London’s currently difficult sales market.

He said there is a viability gap in London and in other areas.

He said: “[Land] values have decreased as inflation has gone up. Costs have gone up by an unbelievable amount due to what’s going on in the world.” He points to legislation also adding to the cost of building homes. He cited a report last month from the Home Builders Federation saying inflation, taxes and regulation have made a home £74,000 more expensive to build since 2020.

Cook, who has previously worked for George Wimpey (a forerunner organisation of Taylor Wimpey), Lendlease and contractor Mace, said: “There’s a viability gap, and its a gap wherever you are in the country, and I’ve never experienced that before in my entire career.

“You’d always struggle in low-cost places in parts of the north east or maybe the south west, but now there’s a viability gap everywhere”. He said developers are therefore “looking for extra capital” and is hopeful Homes England’s Housing Bank may be able to help.

Cook also said Clarion is also shifting its strategy towards doing more master development, pointing to its 7,500-home Tendring Colchester Borders Garden Community.

He said: “We’ve decided to head in that direction as part of our strategy, because we are long-term capital and we’re very good at actually bringing in partners to deliver what we don’t do”.