Provider now has more than 3,500 homes under management
L&G Affordable Homes has reduced its pre-tax losses as its revenue soared, according to its latest financial results.
Annual accounts for the year to 31 December 2024 showed revenue of £44.2m, nearly double the £23.1m recorded the year before.
Of that figure, £26.6m came from rent and service charge income, £2.9m from first tranche sales, and £13.7m from grant income.
The company recorded a loss before tax of £11m, substantially down from its loss of £38.7m in the previous year.
“This is largely due to the company’s revenues having been boosted through increased assets under management and higher levels of grant funding while its investment property portfolio recorded lower unrealised revaluation losses,” the firm’s strategic report explained.
In 2024, L&G Affordable Homes (LGAH) acquired 975 homes from its sister development companies and completed the acquisition of a portfolio of 388 occupied homes from “another registered provider”, according to a statement from its chair, Ian Peters.
It now has just over 3,500 homes under management, of which 2,454 are shared ownership, 890 affordable rent and 159 social rent.
In the chair’s statement, Peters described the group’s success in raising funds for its affordable housing investment strategy over the year, with £510m coming predominantly from local authority pension funds.
“The funding has been raised across three affordable housing funds, the main fund which has a mandate to invest in homes throughout England, the northern fund and south-eastern funds, which focus investment into homes in the north and south-east of England respectively. The funds raised are expected to deliver 3,500-4,000 homes,” Peters said.
LGAH operates through 12 separate entities, nine of which are for-profit registered providers.
It recorded an operating profit of £4.2m in the period, compared with a £27.2m the previous year, and has a secured pipeline of more than 4,200 homes, lower than the 7,000+ recorded at the end of the last period.
Its strategic report said the UK’s economic outlook “remains uncertain”, with the potential for “external shocks” to impact the economy and markets.
“While central bank interest rates were cut in 2024, there remains uncertainty around the pace and timing of any further cuts and there is no guarantee of a ‘soft landing’ for the economy,” it said.
“The primary impact on the business is likely to be through slower sales of shared ownership homes and downward property valuation movements.”
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