Inflation and planning delays making new schemes difficult for 22,000-home Housing 21
Housing 21 has reported a hit to its number of schemes started due to inflation and planning delays.
The extra care specialist, in an unaudited trading update for the six months to 30 September, said while its completions are “largely in line with expectations” its starts have dropped.
It said: “There have been fewer starts on sites due to delays in planning and high inflation in construction prices is making the financial viability of schemes coming forward challenging.”
It is not clear whether starts have dropped year-on-year or are down on the expected numbers for this year. The 22,000-home provider said in its most recent accounts that it was targeting 1,101 starts in 2022/23, which would’ve been a 52% increase on the 725 delivered the previous year.
Housing 21 also said it has completed 104 homes so far in the year and expects to complete 316 by the end of March. It said this was “largely” in line with expectations although it is down on the 353 target outlined for the year outlined previously in its financial accounts.
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Its turnover for the half year increased 10.5% to £119.8m while is operating surplus, which excludes one-off items rose 8.4% to £18m.
Housing 21 also said it has experienced challenges in recruitment for its care services.
It said: “We are making greater use of more expensive agency employees and recruitment continues to be problematic.” It added that it is embarking on a large recruitment drive and significantly reduce the use of agency employees by 31 March.
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