Nick Atkin says cost of borrowing ‘holding the sector back’
Yorkshire Housing has reported a drop in its annual surplus as its operating costs rose and shared ownership sales and disposals slowed.
The 19,000-home provider, in its annual financial statement reported a surplus of £6.2m, down from £10.4m the previous year. The group was impacted by an extra £4.4m in interest costs. Its operating expenditure minus one-off costs rose slightly from £33.8m to £34.7m.
Nick Atkin, chief executive of Yorkshire Housing, in his forward to the accounts re-iterated his call for a cut to interest rates to boost development.
He said: “We’ve been clear that interest rates are holding the sector back. High borrowing costs don’t just make things harder – they directly reduce the number of homes we can build and slow down investment in existing homes.
”That’s why throughout the last year we’ve been calling on the Bank of England to move further and faster. Even modest cuts would unlock significant investment across the sector.”
Yorkshire Housing said the surplus was affected by increased operating expenditure. Its operating costs increasing 5% from £103.9m to £109.1m.
Operational overheads increased year on year by 13%, while depreciation and amortisation and staff costs rose 5% and 7% respectively. The rise comes despite maintenance and major repairs falling £34m compared to the previous year which saw a backlog.
Yorkshire Housing’s social housing lettings income rose £6.7m to £124m and its open sales market revenue increased £3m. This was offset by a £4.7m drop in shared ownership first tranche sales income with 181 sales compared to 233 the previous year. The group’s gain from the disposal of properties fell from £5.3m to £3.6m.
Yorkshire Housing completed 459 homes in the year, down on the 508 reported for the previous year. The landlord is now half way through its target of delivering 8,000 between 2022 and 2030.
The association said all its Tenant Satisfaction Survey scores improved year-on-year, with overall satisfaction rising by seven percentage points to 72%.
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