Turnover also up at 25,000-home provider
Poor operating conditions led PA Housing to pause development in 2024/25, according to its latest financial report.
In its results for the year to 31 March 2025, the housing association cited supply chain issues and contractor insolvencies as creating major challenges for development.
Despite this, the 25,000-home provider developed 407 new homes during the period, up from 365.
“The supply chain issues in the construction sector persist and this has inevitably led to delays in completing our new homes,” it said.
“During 2024/25, we took a deliberate pause from commencing new development projects in response to operating conditions.
“As is the case for many of our peers, difficulties in the construction market have led to a number of our contractors becoming insolvent and ceasing work on site.”
The provider said this had affected nine of its projects and that it had chosen to focus on finishing existing projects and retendering and recommencing challenged sites “rather than seeking new opportunities”.
PA Housing operates across 62 local authorities, with most of its homes in London, Elmbridge and Leicester.
Its portfolio mostly consists of social housing, but also includes 117 market rented homes and 223 properties for healthcare workers at a Nottinghamshire hospital.
Its financial results showed a return to surplus, recording a pre-tax figure of £2.58m, after a deficit of £1.05m the prior year.
Turnover also increased to £224m, up from £207m amd having climbed consistently over the past few years.
Operating surplus stood at £43.9m, up from £37.7m.
PA Housing reported £29m investment in existing homes, up from £16m. At the end of the year, it had six homes that did not meet the Decent Homes Standard, three of which had work underway.
On fire safety, PA Housing has 20 blocks requiring external wall works, of which two are completed and three are on site and in progress.
“Others are either waiting approval from the Building Safety Regulator, in the final design stage, awaiting contractor appointment, or where legal claims are being pursued,” it said.
PA Housing recently announced that its group chief executive, Michael McDonaugh, will step down in the first quarter of 2026.
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