Clarion development down by a third amid ‘challenging market conditions’

Clarion has announced its completions are down by 35% as it rebalances spend towards existing stock in ‘challenging market conditions’.

The 125,000-home housing association, in an unaudited trading update today said it completed 811 homes in the nine months to 31 December.

This is down on the 1,251 homes completed in the same period last year and 1,586 homes the year before that.

It said it spent £380m on new build, down on the same period last year. It however increased its spend on existing homes from £91.7m to £96.7m as part of a “balanced approach being adopted due to challenging market conditions.”

Clarion’s turnover fell from £758.3m to £720m and its operating surplus dropped 31% from £233.9m to £160.5m.

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Clarion said £69m of the £73m drop in operating surplus was due to lower property sales. The previous year saw Clarion sell 1,162 units to other registered providers.

The association said it also made a lower surplus on development sales and had higher operating costs although these were largely offset by higher rental income from social housing lettings following the 7% permitted rent increase.