Clarion rides out falling sales

Housing association giant Clarion has said it is on course to build more than 2,000 homes this year, despite falling sales income due to market uncertainty.

The 124,000-home London and South-east association formed from the merger of Affinity Sutton and Circle in 2016, said in half-year results that it had built 691 homes in the six months to September, up by two-thirds on the same period last year.

However, the organisation’s sales income fell as the number of homes for outright sale reduced by one-third, and its reported six month surplus dropped from £87m to £69m.

Group chief executive Clare Miller said the body expected to build 2,200 homes in the full year, up from 1,200 in 2018, of which the “vast majority” would be for affordable tenures.

Miller’s comments come after Optivo chief executive Paul Hackett yesterday confirmed his association had stopped taking on new developments including homes for sale, to instead focus on grant-funded affordable housing.

Clarion’s Miller said that “undoubtedly UK preparations to leave the European Union and the impending general election has had an impact on the housing market”, and that the housing association had also spent £24m on fire safety work in the period.

She added: “Continued investment in our services at a time of economic uncertainty does come at a cost, and as a result our surplus for the year has seen a reduction but remains healthy.”