For-profit RP ReSI Homes records £16m loss in third year of reporting

ReSI Homes has reported a pre-tax loss of £15.7m despite increasing its turnover.

The for-profit registered provider of social housing is a subsidiary of Gresham House Residential Secure Income LP, which is overseen by asset manager Gresham House.

In its results for the year to 31 March 2024, its third year of reporting since launching in 2021, the organisation posted revenue of £13.6m.

This was up from £9.99m the year prior, though the loss recorded this year was a significant drop from the £5.16m it achieved in 2023.

The pre-tax loss was primarily the result of losses resulting from the revaluation of investment property.

Chair David Orr said the firm had weathered “a difficult backdrop of rising interest rates, challenges to housing development and the cost of living crisis” over this period.

He said ReSI’s focus in the year had been on “managing its existing portfolio of shared ownership homes and ongoing development projects whilst adding selectively to its affordable housing portfolio”.

ReSI invested £58m into the development of 652 homes in the year, of which 578 are currently under construction or leasing up, the remainder having been completed and occupied.

Post-year end in June 2024, ReSI Homes became a ‘large’ registered provider, through owning more than 1,000 completed homes, triggering additional regulatory obligations.

At the beginning of this month, ReSI Homes entered a partnership with a subsidiary of Places for People (PfP) to create a new affordable housing fund management platform for shared ownership.

Earlier this year, Gresham House announced it was selling Residential Secured Income Trust plc, a real estate investment trust which owned ReSI Homes’ sister for-profit, which was known as ReSI Housing.

The managed wind-down will see ReSI Housing’s 3,000-home portfolio sold off as a package to a new long-term owner.