L&Q built more than 4,000 homes running for the second successive year but faced a big drop in its surplus due to falling investment property values, write-downs and rising costs.

The 108,000-home association, in its financial statements for the year to 31 March, said it completed 4,047 homes in the financial year, slightly down on the housing association sector record-breaking performance of 4,157 the previous year.

The association also increased its annual starts from 2,103 to 2,760. The completions figure means it has now exceeded a sustainability target of building 8,000 homes between 2019 and 2024.