Beyond Housing surplus hit by nutrient neutrality rules

Beyond Housing has missed its annual development target and posted a lower operating surplus, citing nutrient neutrality rules and planning delays.

The 15,000-home association, in its financial statement for the year to 31 March, revealed its operating surplus excluding one-off costs fell from £17.2m to £14.9m.

The north Yorkshire-based provider said the drop was “due to nutrient neutrality regulation and planning delays impacting the development of new homes and revenues.”

The association completed 220 homes, which it said was below its undisclosed target for the year. Its operating costs increased from £59m to £66m due to inflation, increased repair volumes and “higher subcontractor expenditure”. This contributed to a reduction in operating margin from 20.9% to 15.4%

Beyond Housing’s overall pre-tax surplus however increased from £2.4m to £7.8m, due to one-off refinancing costs of £7.1m impacting on the previous year’s figure.

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Its turnover increased 19% from £76.5m to £91.4m boosted by a social rent increase and higher revenue from shared ownership sales.

Beyond has a target of building 2,750 homes between 2020 and 2030.

It said: “We had delays to our new homes programme due to nutrient neutrality in Teesside, planning in Scarborough through the unitary reorganisation, alongside the wider economic environment challenges. These have all impacted our metrics e.g. supply of new homes.”

The government’s plan to tackle the nutrient neutrality planning crisis were voted down by peers earlier this month. The government is now reportedly planning to bring forward a standalone bill to reform the rules, which have been blamed for tens of thousands of homes being put on hold.