Housing association giant expects significant sales drop
Clarion Housing Group has said it had shut the majority of its construction sites but that it was still unclear what the financial impact of the coronavirus pandemic will be.
In an announcement to the City, the firm said: “It is too early to project the full financial impact of this crisis but our fundamentals are sound and we have a strong liquidity position. We are well-placed to manage this unprecedented event.
“We anticipate the biggest short-term impact on the finances of the group will result from significant reduction in sales volumes, for both our shared ownership and private sale homes. In parallel our forward development spend will slow, as activity on sites stops or is significantly scaled back.”
It said rent arrears were also expected to increase.
In terms of construction, the firm said it had moved to a critical repairs service and will focus on completing the jobs necessary to protect residents and keep homes safe and secure.
It said where it was necessary to carry out critical repairs, operatives would be issued with appropriate PPE.
The firm said a majority of its construction sites had now closed at the discretion of its contractors.
Clarion also said all its staff were now working from home unless there was a critical reason why they cannot.
The group also announced a number of measures for its residents.
It said around 12,000 Clarion residents were over the age of 70 and that it had set-up a programme of rolling phone calls to help their wellbeing and make sure they can access support if they need it. Thousands of calls have already been made.
And it said Clarion Futures, its charitable foundation, had established an emergency support fund of £50,000 – to provide direct financial support to partners and community groups.
The organisation will issue its quarter four performance update as usual on the 27 April.
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