G15 landlord expects to complete sale of PRS business this year as it works on improvement plan
Notting Hill Genesis has reported a pre-tax surplus of £2m for the first half of the year.
The G15 landlord, which is working on an improvement plan to regain regulatory compliance, reported the figure in an unaudited update today.
It represents a drop compared to the £23m pre-tax surplus reported in the first half of the previous year. The group’s operating surplus fell from £78.3m to £42.9m over the same period. NHG reported a full-year deficit of £285m in 2025/26 once non-cash items were taken into account.
The group’s turnover for the six months rose by 3.2% to £361.4m.
NHG said “underlying cost pressures remain” in the form of non-recoverable service charges, responsive repairs, voids, legal costs, depreciation and the cost of resident relocations.
A spokesperson said: “For H2 we are closely focussed on actions to improve cost control, strengthen financial management, simplify the group corporate structure and improve operational processes.
“Stronger oversight of responsive repairs, service charges, improvements to debt recovery, tighter management of decant expenditure and control of purchasing commitments are underway.”
NHG said the sale of its 2,000-home private rented sector business Folio should complete this year and that it is progressing its disposal programme. Sales of voids and other disposals this year generated surplus of £26.6m in the half year.
NHG said it has completed stock condition surveys on 89% of its homes within a five-year cycle, up from 46% in 2023/24. The percentage of buildings with both an in-date fire risk assessment (FRA) and no overdue actions has also risen to 94.8%. This is an improvement from 63% reported three years ago.
Helen Evans, interim chief executive of NHG, said: “These results show some areas of progress, but we are clear about the challenges and underlying pressures on our operating performance.
“We are taking action to strengthen financial control, improve the reliability of our forecasting and simplify the way NHG operates. This includes more disciplined management of costs, clearer accountability and a sustained focus on the drivers of operational performance.”
NHG was downgraded to a non-compliant ‘G3’ governance grade by the Regulator of Social Housing (RSH) in November 2024. RSH at the time found serious concerns with NHG’s business planning and risk and control frameworks that led to ‘poor outcomes’ for tenants. It found failures against the new consumer standards including a substantial backlog of overdue fire remediation actions, a lack of data on whether legal requirements had been met in a large number of third party managed buildings, a repairs backlog and a lack of accurate data.
NHG has been working on an improvement plan since 2024 and there have been numerous changes at the top of the organisation. Patrick Franco, chief executive, departed the landlord in September, with former Network boss Evans drafted in as interim.
Earlier this year CFO Mark Smith stood down and NHG brought in Ken Youngman, formerly of Family Mosaic as interim. It also last year appointed former Peabody boss Brendan Sarsfield as chair and hired Curo boss Victor da Cunha as chief customer officer.
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