G15 provider admits building just 42% of targeted homes last year as it announces plan to focus on improving existing stock

Notting Hill Genesis (NHG) completed 42% of its targeted homes in 2022/23 after work on six developments was pushed into the following financial year.

bagshot park 1 notting hill genesis

How NHG’s Bagshot Park, part of the second phase of the Aylesbury regeneration scheme, will look

The 67,000-home housing association said in its 2022/23 financial statement it completed 459 homes in the year, well short of its 1,087-home target and around a third of the 1,377 it built in 2021/22.

The shortfall in homes against the year’s target was due to six schemes delivering a total of 626 homes that were unexpectedly being pushed back into 2023/24. An NHG spokesperson said this was due to contractors facing higher costs and increasing difficulty sourcing materials, components and labour.

NHG missed its target for starts, with work beginning on 459 homes against a target of 1,428.

However, it said its starts figure is 1,544 when counting homes started under pre-contract service agreements, rather than full contracts.

NHG also announced plans to invest nearly half a billion pounds (£497.4m) in improving existing properties over the next 10 years. It more than doubled its spend on capital works to improve homes from £19.4m in 2021/22 to £39.7m in 2022/23.

It said: “We are spending £500m (uninflated) on our planned investment between now and 2030 with a constrained development programme, while improving our residents’ experience.”

Despite the decision to focus on existing homes, it said it will still build more than 1,000 homes in 2023/24 as part of a target to build 5,000 by 2028.

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NHG’s turnover fell 13% from £836.9m to £728.1m, with its post-tax surplus dropping 7.7% to £94.4m.

NHG said the drop in income was due to an £138.8m fall in sales and development revenue to £116.1m. Its turnover from social housing lettings however increased from £486.6m to £515.8m.

The association said that it has a high level of liquidity, enabling it to fund its plans for new development, repairs and stock investment from its existing resources for the next four years.