Shared ownership income falls and market sale revenue halves as provider pivots to reduce market exposure
Home Group has reported an increased surplus despite a fall in homes for sale and income from shared ownership.
The 58,000-home provider, in its financial statements for the year to 31 March 2026, reported a 1.4% fall in turnover, from £505.4m to £498.5m.
The group’s social housing lettings income increased by 4.3%, due to a 2.7% rent increase and an additional £4m in rent from newly developed homes.
However this was offset an £3.4 million reduction in shared ownership first tranche sales revenue which Home Group said was in part due to the ending of the previous Affordable Homes Programme. The group’s turnover from properties developed for outright sale halved to £21.5m.
It said: “This follows the strategic decision in recent years to reduce exposure to direct private sale and pivoting the focus to joint ventures and developing affordable housing for our portfolio.”
Despite the turnover drop, Home Group’s overall surplus increased 12%, from £34.2m to £38.2m.
The group completed 1,066 homes in the year. This was down on last year’s total of 1,437 homes, but it hit its target for delivering new social housing supply equivalent to 1.3% of total stock and 0.1% for non-social homes. Home Group has increased its social housing supply target to 1.4% for 2026/27.
Home Group invested £173m in improving existing homes in the year, similar to the £175m invested the previous year. It increased its spend on development by around £14m to £170.5m.
The group’s overall resident satisfaction rate rose from 68.2% to 72.9%.
Helen Meehan, chief financial officer at Home Group, said: “We are pleased to report continued strong and improving performance across many areas of our business despite the challenging environment and the need to strike a careful balance between investing in our existing homes and communities and investing in much needed new affordable homes.”
Meehan will step up to the chief executive role later this month, succeeding long-time boss Mark Henderson, who is retiring.
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