Paradigm’s annual completions down 21% but still on track to meet targets

Paradigm’s turnover and surplus has increased but its annual development of new homes has fallen by 21%, according to the housing association’s latest accounts.

The 17,000-home association completed 411 homes in the year to 31 March 2025, down from the 522 it completed in the preceding 12 months.

But its turnover rose to £160m in the year from £151m the year before, while its operating surplus increased to £59m from £53m. 

Pre-tax surplus was also up, from £20.6m to £22.9m.

Of the homes it completed during the period of its latest accounts, 234 were for affordable rent including 12 at social rent.

Paradigm is aiming to complete at least 1,950 homes between 2021 and 2026 and said it is on target to exceed this. The target was reduced from 2,250 in 2023 due to a “challenging economic environment”.

The organisation said it is forecasted to complete a further 422 homes in 2025/26.

It said its contracted and approved development pipeline at the end of the year is 1,108 homes, with 468 new plots having been secured during 2024/25.

During the year, the group invested £52m in home repairs and improvements, including over 39,000 repairs and more than 1,500 replacements of key components.

The landlord sold 148 shared ownership homes in the 12 months to the end of March this year, bringing in a total of £21.3m.

It said this was mainly driven by higher than expected prices for shared ownership homes, with customers purchasing higher percentage shares. 

Its overall margin on shared ownership sales was 22.7% against a budget of 22.5%. 

But the association said the market has “continued to prove challenging”, with interest rates still high, the political environment remaining uncertain and inflation, though falling, continuing to impact customers.

“However, our prudent approach to navigating these challenges has put us in a good position to maintain our focus on providing excellent services to our customers,” it said.

Nicola Ewen, chief financial officer, said: “The Group has maintained focus on its objectives despite the continued challenging operating environment.

”We have achieved upper quartile performance for customer satisfaction, staff engagement and financial metrics, continued to build new homes and invested significantly in our existing homes.

“We have upheld our reputation with our regulators, investors and lenders as we maintain our position as a financially robust organisation with substantial liquidity, covenant headroom, unencumbered assets and strong margins which we will bring to the table as we prepare to merge with Settle towards the end of 2025.”. 

The accounts come two weeks after Paradigm confirmed its plans to merge with 10,000-home housing association Settle to create a combined landlord with 30,000 homes.

Paradigm said in the accounts it is working with Settle on a combined plan to migrate both organisations “on to a single new platform to support a new Corporate Plan and deliver the benefits intended from the formation of the partnership”.

Completion of the legal merger is targeted for October this year.