Surplus up on reduced turnover in Clarion trading update

Clarion has reported an improved surplus despite a drop in turnover in an unaudited quarterly financial update.

The 125,000-home provider’s figures for the period to 30 September 2025, revealed group turnover was down from £542m to £522m, with low development sales offsetting an increase in rental income.

Clarion said the drop included lower year-on-year first tranche shared ownership and private sales, which it said was “driven by our decision to manage supply along with the challenging market conditions”. 

“This careful management of supply has resulted in stock levels remaining in line with the prior year,” it added.

Despite the drop in turnover, operating surplus rose to £161m, from £138m, supported by the increase in rental income, as well as a £16.5m increase in disposal surplus in the first half.

Net surplus before tax and fair value adjustments also increased from £65.4m to £88.7m, on the back of the improved operating surplus and lower financing costs.

>>See also: Why we are transforming Clarion

The results include £12.9m in development-related impairments, arising mainly from contractor failure and the revised cost to complete schemes underway.

Clarion invested £243m in new housing supply in the period, up from £204m, as well as £58m in improvements to existing homes, up from £41m.

Yesterday, the Regulator for Social Housing uplifted Clarion’s financial viability rating from V2 to V1.