Provider aiming for 70% of new development to be for social housing tenures
Anchor Hanover has increased its annual turnover by 17%.
The older people’s specialist housing and care provider, in its financial statements for the year to 31 March, posted turnover of £621m, up from £531.7m the previous year.
The group increased its social housing lettings income by £81.7m, from £510.9m to £592.6m. This included an £85.7m increase in net rental income and a £25.2m increase in higher service charges.
It said: “Service charge income has been impacted by increases in service chargeable gas and electricity unit costs following the significant increase in commodity prices over the last year.”
As a supported housing provider Anchor Hanover was permitted to increase rents by 11.1%, however it capped rises for existing customers at 7% in line with general needs housing providers. The turnover rise was also due in part to an extra £22m for the first full year of income from 11 residential care homes operated by Halcyon Homes, which was acquired by Anchor Hanover in November 2022.
The group’s overall surplus fell from £16.6m to £1.9m due to one-off interest and financing costs. Its operating surplus, which excludes certain one-off costs, decreased slightly from £37.5m to £36.7m.
Anchor Hanover’s income from property sales fell by £10.5m to £14.2m, which it said was due to “delays in practical completions and more challenging market conditions”. It also recognised an impairment charge of £9.6m due to additional costs following the liquidation of a contractor.
The group built 573 homes in the year, more than the 82 it reported for last year and higher than its development target of 480. It has acquitted 14 new care homes, consisting of 951 beds, since November 2022.
>>See also: Removing the barriers to later living development
>>See also: Southern Housing CFO moves to Anchor Hanover
In a foreword to the accounts, Sarah Jones, chief executive and Christopher Kemball, chair, said the group’s development focus has been refined to “concentrate where the need is greatest” and will now aim for 70% of homes to be social housing tenures and 30% older people’s shared ownership.
They said: “We will also be concentrating on a selected group of local authorities with whom we intend to develop closer partnerships.
At a time when housebuilders are cutting the number of homes they are building, we believe there is a good opportunity for well-capitalised housing associations such as Anchor to be counter-cyclical in our housing development.”
They added that clarity from government over social rent rates is needed “for those of us who are investing on a 30-year timescale”
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