Surplus down but turnover and completions improve at SNG

Sovereign Network Group has reported a drop in surplus alongside increased turnover and completions in its latest annual report.

The 85,000-home housing association’s results for the year ended 31 March 2026 showed a 2.9% rise in annual turnover, from £794m to £818m.

However, its operating surplus fell from £205m to £193m, while its surplus before tax was down from £74.8m to £38.7m.

The group said the reduction in operating surplus reflected “the impact of one-off impairment and pension settlement costs, alongside higher depreciation and financing costs driven by continued investment in existing homes, building safety, retrofit activity and new housing development”.

It insisted its underlying performance remained “robust”.

During the year, the group delivered 1,661 new homes across a range of tenures, up roughly 4% from 1,590 built the previous year, although still down on the 2,015 delivered in its 2024 results.

Once again, the plurality of homes delivered were for shared ownership (628), while there was a marked 50% increase in the number of homes delivered for social rent (451).

Overall, the group invested £703m million in the development of new homes during the year, up from £642 million the previous year. It started work on 2,482 homes and increased its development pipeline to more than 12,000.

Mark Washer, group chief executive of SNG, said these achievements “reflect both the scale of our ambition and our determination to play a leading role in tackling the country’s housing crisis”.

He said that “far too many people remain without access to a decent home they can afford” and said the group remained “firmly committed to delivering new homes at scale while continuing to invest in the homes and communities we already serve”.

SNG was the sixth biggest housing association in the UK last year by turnover, according to Housing Today’s exclusive Largest 50 Housing Associations analysis