44,000-home association narrowly misses hitting 628-home development target

Hyde has reported a 3% drop in its annual turnover as its income from shared ownership and outright sale properties fell sharply.

The 44,000-home association, in its annual financial statement for 2022/23, reported group turnover of £363m, down on the £374m reported the previous year. Its income from outright market sales dropped £75m to £44m. This was offset by social housing rental income increasing by £7m to £261m and shared ownership revenue rising by £9m to £27.8m.

andy hulme hyde 2

Hyde chief executive Andy Hulme is a former global banker

Hyde’s surplus for the year dropped 20% to £94m, due in part to £18m in one-off loan breakage costs. Its operating surplus excluding one-off items however remained steady at £110m, compared to £111m the previous year.

Hyde completed 625 homes in 2022/23 including joint venture developments, narrowly missing its target of 628, but exceeding last year’s figure of 570.

Hyde started 2,105 homes in the year, its highest ever, as part of its plan to ramp up development under new chief executive Andy Hulme. The association is aiming to be regularly completing 2,000 homes a year from 2025.

>>See also: From global banking to social housing with Hyde boss Andy Hulme

>>See also: Regulator warns of ‘weakened’ housing association finances as cash drops to eight-year low

The G15 member also said it is looking for new sources of funding for new homes. It has already made headline for its third party funding models, including a partnership with AXA and Homes England and establishing a 50:50 for-profit provider with AXA.

Hyde’s core operating margin feel sharply from 29.5% to 20.2%.

Rod Holdsworth, chief financial and resources officer at Hyde, said the reduction in margin was due to Hyde’s decision to “absorb the rent cap and higher inflationary costs” to enable it to invest in homes.