64,000-home association becomes latest provider to repor development plan disruption due to supply chain issues and partners ‘re-profiling’ schemes
Guinness Partnership completed less than half the number of homes it had been aiming to build in 2021/22 as it battled supply chain issues.
The 64,000-home housing association, in its accounts for the year to 31 March, completed just 410 homes in the year compared to a target of 835. It started work on 1,027 homes, missing it target of 2,484 by a wide margin.
It said: “Completions and starts on site during the year were adversely affected by labour and material supply chain issues and some developers reprofiled completions of affordable homes on their schemes.”
Guinness is just the latest in a string of housing associations to miss their completions target for the year, following the likes of Sanctuary, Hyde, EMH Group and Stonewater (see box below).
However the association implied it is on course to hit its target of building 5,500 homes between April 2018 and March 2025. It has completed 1,616 homes in that time and started work on a further 3,885.
Guinness reported a 36% drop in its surplus to £44.6m, however this was due in part to the previous year’s figure being boosted by £94m due to a stock swap with Paradigm Housing. Its turnover grew 7.2% to £388.2m aided by a 2% increase in income from social housing lettings.
Guinness’ operating margin on its social housing lettings of 24.5%, marginally down on the 24.8% last year.
It said: “We have maintained our operating margin despite a challenging external environment and rising cost inflation particularly in labour and materials costs which form a large part of our expenditure.”
Meanwhile, 34,000-home association Midland Heart reported a 46% increase in its surplus to £55.6m. The figure was boosted by a stock swap with Orbit Group, which generated £7.5m in surplus and increased shared ownership sales.
Housing association financial statements 2021/22
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