The 32,000-home housing association’s turnover increases, but its surplus falls due to interest costs
Citizen Housing has completed 703 new homes in the 2023/24 financial year, which it says is the largest development programme that it has achieved in a single year.
This figure represents an increase from the 630 homes completed in the previous year.
Of the 703 homes, 653 were for rent and shared ownership, and 50 were for outright sale.
Citizen’s financial statement for the year ending 31 March 2024 said it has increased its investment in the development of new homes from £95.8m in 2022/23 to £108m this year.
>> See also: Citizen Housing’s £120m regeneration of 1960s Coventry estate to start in October
>> See also: Thirteen Group ploughs additional £57m into developing new homes and increases surplus
This was still slightly less than the housing association’s target to spend £130.6m on new development during the year due to “slippage in the spend profile of our affordable development programme”.
However, the report noted that 32,000-home Citizen has a smaller development programme compared to some of its peer comparator organisations.
The West Midlands-based housing association reported an increase in turnover, which rose from £183.5m in 2022/23 to £192.6m at 31 March 2024.
Turnover from social housing lettings increased by £14.9m, while first tranche shared ownership dipped slightly, by £1m.
Income from build-for-sale activities decreased by £5.7m.
Despite the increase in turnover, the social landlord reported a decrease in its surplus, operating surplus and total comprehensive income for the year.
Citizen’s surplus dropped from £23.1m in 2022/23 to £19.1m in the 2023/24 financial year. The surplus figure was hit by a £3.1m increase in financing costs.
Its operating surplus fell slightly, by £1.1m, to £48.3m. The association reported a total comprehensive income for the year of £16m, compared to £78.1m in the previous year.
Citizen’s operating costs went up by £7.5m, to £147.2m. Its operating margin has also decreased from 24.5% to 23.6%.
During the year, Citizen spent £42.6m on major repairs and £25.7m on decarbonisation works.
Citizen in its current form was created in 2019, when WM Housing Group amalgamated its associations - Family Housing Association, Optima Community Association, West Mercia Homes, Whitefriars Housing and WM Housing - into one business and rebranded.
Housing association financial statements 2023/24
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