Completions drop at Karbon as landlord focuses on meeting repairs demand

Karbon Homes has reported a 48% drop in its annual completions.

The 30,000-home provider said in its financial statements it built 478 homes in the 2025/26 financial year, down on the 707 it completed the previous year.

Karbon, which is based in Newcastle-upon-Tyne, said the drop was “largely due to the increased investment we have made in our non-urgent repairs service, to meet the ever-increasing demand we are experiencing” . The group narrowly missed its target of building homes equivalent to 2.1% of social housing units owned, with 67 too few properties developed. It said this was due to mainly due to planning and third party delays.

The group invested £61.4m in routine and planned maintenance, up 12% year-on-year.

Karbon increased its annual turnover by £14.7m to £322.7m, this was largely due to a £12.1m increase in net rental income from social housing lettings.

The group’s total operating expenditure on social housing lettings increased by more than £12m, including an extra £5.8m on routine maintenance.

Karbon’s overall surplus fell from £35.8m to £31.1m. This was due largely to a £2m loss in the valuation of investment properties compared to £695,000 gain the previous year. Its operating surplus excluding such one-off items rose from £57.7m to £60.6m.

Paul Fiddman, chief executive of Karbon, said: “Over the last year we have made great progress against our strategic aims and I’m proud of the positive impact we are continuing to have across our communities.”