Aster bolsters spending plans after profit hike

Aster Group, the South of England-based housing association, said it plans to more than match the £52.5m it spent on maintaining its portfolio in its 2018/19 financial year in the coming 12 months and build a similar number of homes.

The group, which operates 30,000 homes, saw pre-tax profit for the year to the end of March 2019 rise by 10% to £55m, on turnover up 3% to £212m.

Aster said it was able to spend nearly £53m on its homes last year and it aimed to maintain that level of investment in the next 12 months.

The group also built 453 homes for shared ownership – its highest annual total – and just over 600 for social and affordable rent, plus nearly 100 through joint ventures with Galliford Try’s partnerships arm.

Aster said it is aiming to build another 1,100 new homes in the current financial year.

Bjorn Howard, Aster’s chief executive, said the group now had the platform to build more affordable homes across the South of England.

“In this regard the choice is as important as supply, which is why our development pipeline includes homes in a range of tenures including social rent, affordable rent and shared ownership,” he added.

Nearly 2,500 of Aster’s homes are shared ownership. Commenting on the government’s proposals to reduce the percentage owners are required to buy from 10% to 1%, Amy Nettleton, Aster’s assistant development director, said simplification of the system should be investigated.

“Even those of us who believe passionately in shared ownership understand it’s not perfect and we should explore ways of improving it, such as simplifying the staircasing process.

“We know from our own research that a lack of awareness and misunderstanding are also holding it back, so focusing attention on how shared ownership works and who can benefit will be just as important as adjustments to the model itself.”

Nettleton said it was “heartening to see the government recognise shared ownership’s place in the national housing debate”.