Strata Homes halves losses amid shift to ‘less risky’ partnerships work

Strata Homes has significantly reduced its pre-tax losses following its strategy of forward-selling a greater proportion of its homes to housing associations and investors.

The Doncaster-based housebuilder in its accounts for the year to 28 June 2025, reported turnover of £165.2m, up 13% on the £146.3m reported for the previous year.

The group still made a pre-tax loss of £4.1m, but this was half the £8.2m loss from the previous year. It posted an operating profit of £757,000, compared to an operating loss of £1.9m last year.

The group is following a strategy of doing proportionally more partnerships, or ‘pre-sold’ work.

This means it forward sells homes to housing associations under section 106 affordable housing agreements, equity investors that are developing build-to-rent homes, or private landowners without build capacity.

It is therefore doing less traditional open market sale where it sells homes on the market after it has developed a site.

It said: “The open market sale business stream requires debt funding, carries a sales risk as to timing and value and build cost risk.

“All of which are exposed to macro-economic conditions, such as interest rates and inflation. The pre-sold business stream requires minimal or no debt funding once a contract is executed.”

The group completed 678 homes in the year, up from 592 the previous year. Open market sale completions fell from 82% to 59% of Strata’s total, while pre-sold or partnerships completions rose from 18% to 41%.The latter includes 70 completions of homes purchased through section 106 deals.

Strata placed 35th in Housing Today’s annual Top 50 Housebuilders table last year, which ranks housebuilders by turnover.