G15 landlord exceeds operating margin target as sales increase
Metropolitan Thames Valley Housing (MTVH) is aiming to more than double its development in 2025/26 to more than 1,200 completions.
The 57,000-home landlord, in its financial statements for the year to 31 March, said that its target for completions, including units built through joint ventures, this year is 1,242 homes. This would be a large increase on the 544 completions achieved in 2024/25.
It is also aiming to enter contractual commitments for 1,000 new units in the year.
The group’s accounts also reveal it has exceeded its target for overall operating margin.
The 57,000-home landlord said its overall operating margin was 29.7%, above the 28.6% it had budgeted for. When surplus on disposal of fixed assets is excluded, MTVH’s operating margin rose from 18.2% to 21.8%, which it said was “reflective” of increased shared ownership first tranche sales and outright sales.
The group sold 289 first tranche units in the year, achieving a surplus of £10.1m, up from £4m the previous year. Total revenue from home sales rose from £30m to £37m.
The financial statements confirm figures released by MTVH in an unaudited update in June showing the provider has returned to surplus.
The group posted a surplus of £47.8m for 2024/25. This compares to an £80.3m deficit last year due to MTVH accounting for £110m in net building safety and non-recurring costs.
MTVH spent £165m on existing homes in the year, including building safety, maintenance, compliance and improvements. This was up from £149m year-on-year.
MTVH last year warned that it expects to invest record amounts into development to build 1,000 homes year but warned its build capacity is limited without government support. The government since announced a £39bn Social and Affordable Homes Programme.
In a foreword to the financial statements, Mel Barrett, chief executive of MTVH, said: “Following the spring Spending Review and our new government funding agreement, we remain committed to our commitment to deliver 1,000 new homes annually as part of our long-term housing strategy. “Building new homes also provides significant growth for the UK economy by supporting the construction value chain, creating employment and prompting investment in the communities where we build.”
He said the 544 completions in 2024/25 were lower than the 812 completed the previous year as the group balances “development with investing in our existing homes and meeting building safety legislation”
More 2024/25 housing association financial statements
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