Turnover and surplus up at 10,000-home provider
Housing 21 is planning to build around 100 more homes in 2025/26 than it did in its most recent financial year, pointing to encouraging signs in the construction market.
According to its audited results for the year ended 31 March 2025, the extra provider completed 255 new properties in the period, up from 117 and all but hitting its target of 256.
Its 511 starts on site was well above the targeted 384, and it announced that in the new financial year it is targeting 396 starts and 352 completions.
“Encouragingly, the construction market has stabilised over the past 12 months, with tendered costs now aligning more closely with our financial assumptions,” the report said.
“The small to medium sized contractor market has also recovered significantly, with greater availability of contractors and increased confidence in fixing prices for future delivery.”
But it said that “challenges persist” in the land market, particularly in securing local authority sites, “where capital receipts are often prioritised amid competing demands and constrained budgets”.
The provider said its future development programme was focused on delivering more properties for social rent.
During the year, it sold “the bulk” of its leasehold management portfolio to Churchill Estates Management Limited.
Housing 21 currently has 19 development projects on site that are set to deliver a further 1,028.
The 2024/25 financial year was Housing 21’s biggest yet for the acquisition of specialist housing for older people from other providers.
It acquired one extra care scheme with 42 properties from Rooftop Housing Association, as well as 1,566 properties from Midland Heart.
Almost 85% of these homes are for social rent, with some shared ownership and leasehold properties.
The acquisitions mean it has crossed the five-figure threshold for the first time, no operating 10,345 properties across 191 schemes.
Its financial results for the year also recorded an increase in turnover, from £275m to £297m, while surplus before tax rose to £15.8m from £11.8m. Operating surplus stood at £37.5m, up from £27.8m.
The housing association spent £38.8m in maintenance last year and said it had no outstanding compliance concerns in respect of fire, gas, electrical, water, asbestos or lift safety, and no instances of unaddressed damp or mould.
It said it was “deeply disappointed” at the C2 rating it received from the Regulator of Social Housing earlier this year.
The report said the board were “proactively working to strengthen the oversight and triangulation of performance data and other feedback mechanisms to ensure there is clear oversight of the quality of services”
The provider hoped this work would be “positively endorsed” by the regulator and that a C1 rating would be achievable “within 12 months of the original C2 assessment being issued in May 2025”.
Housing 21 also explained the reasons behind its decision to decommission services at Oak Grange and Ash Grange, two concrete tower blocks in Liverpool.
“The advice from expert surveyors suggested that the concrete frames on both buildings are expected to erode within the next five to 10 years and even with significant, multi-million-pound investment and two years of disruptive work to residents, the buildings’ lifespan could only be increased to a potential of 20 years,” it said.
“Under the circumstances it was felt to be the right thing to start the process of finding the residents suitable alternative accommodation.
“Many of these residents are long-standing and dedicated teams are in place to ensure individual support and advice is provided to them and their families at what we appreciate is a difficult time.”
According to a report in the Liverpool Echo from June, there are around 120 homes in the development and residents have been told they would have to leave by 2027.
More 2024/25 housing association financial statements
Onward Homes increases surplus and turnover despite repair costs pressure Landlord completes 434 homes, up from 329 year-on-year
Peabody surplus drops 18% as maintenance spend rises Full accounts published for 109,000-home landlord
MTVH targets 1,200 completions this year G15 landlord exceeds operating margin target as sales increase
Surplus falls at Orbit as inflation and maintenance pressures push up costs 47,000-home landlord margin reduces as it steps up investment in improvements to existing stock
Riverside moves back into surplus after two years of deficit Liverpool-based landlord increases operating margin after sale of loss-making care business Baycroft
Southern moves back into surplus but margins squeezed G15 landlord targeting £14m of efficiencies this year
Rising spend on existing homes puts pressure on Platform interest cover Turnover and surpluis rose last year at the provider
LiveWest boosts completions but misses affordable homes target Open market and shared ownership sales lower than targeted
Stock sales help boost turnover and surplus at SNG Landlord completes grading of all stock to identify homes for regeneration, retrofit or disposal
Home Group reports increased turnover and surplus Housing association delivers more than 1,400 new homes in the year
Anchor increases surplus amid regulatory troubles Turnover also up after year of consumer and governance regulatory downgrades
Stonewater reports ‘strong’ financial results on back of £35m rise in rental income But landlord’s surplus falls to £12m
Midland Heart sees surplus soar £25m The Birmingham-based landlord said the increase was a one-off from divestments of its retirement homes
Turnover up but surplus down at Moat Provider also increases new home completions
Paradigm’s annual completions down 21% but still on track to meet targets Buckinghamshire-based housing association says new build “central part” of mission as it increases surplus and turnover
Vivid builds more than 1,500 homes for the second successive year Hampshire landlord increases surplus and turnover
Shared ownership income drops at Bromford Flagship Newly merged 80,000-home landlord confirms turnover and surplus increase in audited figures
Record turnover at Clarion but surplus drops and completion targets missed Housing association will seek to recover costs from third parties as remediation provisions and contractor failure blunt surpluses
Sanctuary meets development target but sales drop 125,000-home housing association says a number of investors are interested in buying its student housing portfolio
Karbon boosts development but falls short of target 32,000-home association bidding to register a for-profit provider called Graphite Living to attract funding
BPHA returns to surplus Shared ownership sales dip and operating costs rise for Bedford-based landlord
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