Clarion has reported a drop in its surplus for the first half of the year due to inflation and a major cyber-attack.

The 109,000-home housing association reported turnover of £481m for the six months to 30 September, down 6% on the £512m reported for the same period the previous year. The group’s operating surplus – which excludes one-off items- fell 10% to £149m over the same period.

In a trading update Clarion said: “The lower operating surplus reflects the higher levels of cost inflation, increased expenditure on repairs and maintenance and additional provisions against rent arrears linked to the recent cyber-attack.”