Orbit Group’s surplus has fallen 13% as rising operating costs squeezed its margin.

The 47,000-home housing association, in its financial statements for the year to 31 March, reported a surplus of £47.9m, down on the £54.9m reported the previous year. Its operating surplus excluding one-off costs fell from £110m to £105m while its operating margin dropped from 28.1% to 25.8%

The group’s operating costs rose 11.7% to £238 million.