Lower shared ownership margins hit Yorkshire Housing’s surplus

Yorkshire Housing has reported a lower operating surplus for the six months to 30 September.

The 19,000-home provider, in an unaudited update, said its operating surplus was £19.1m in the half-year, down 5% on the £20.2m reported for the same period a year earlier. The group’s pre-tax net surplus also dropped from £11.3m to £7.7m.

Rob Parkes, executive director finance and governance, said: “Yorkshire Housing improved financial performance last year.

“As anticipated, we’ve had a slight dip in performance into the first half of this year. The main driver is lower margins experienced on shared ownership sales because of the mix of schemes coming to market. However, our operating surplus remains ahead of budget for the period.”

Yorkshire Housing also said depreciation and amortisation costs rose 14% due in part to investment in technology.

The group’s rental income increased 6% due to rent increases and new development. It sold 109 shared ownership first tranche homes, down from 123 last year but outright sales increased, with 20 homes sales compared to 13.

Yorkshire Housing last year, along with other 22 other landlords, adopted the Yorkshire Homes Standard, under which all homes must meet national space standards, be indistinguishable from market homes, be accessible, be highly insulated and reflect local housing need.