Flagship has increased its surplus by 16%, despite higher management costs and a drop in open market sales.

The 32,000-home housing association, in its financial statements for the year to 31 March, reported a surplus of £57.1m, up from £49.2m. Its operating surplus, which excludes one-off items, rose by 13% over the year, to £90.1m, and its turnover has increased by just under £3m, to £253m.

The group increased its social housing lettings income by 10%, from £167m to £184m, while its shared ownership first tranche income rose 8% from £16.1m to £17.4m