64,000-home association becomes latest provider to repor development plan disruption due to supply chain issues and partners ‘re-profiling’ schemes
Guinness Partnership completed less than half the number of homes it had been aiming to build in 2021/22 as it battled supply chain issues.
The 64,000-home housing association, in its accounts for the year to 31 March, completed just 410 homes in the year compared to a target of 835. It started work on 1,027 homes, missing it target of 2,484 by a wide margin.
It said: “Completions and starts on site during the year were adversely affected by labour and material supply chain issues and some developers reprofiled completions of affordable homes on their schemes.”
Guinness is just the latest in a string of housing associations to miss their completions target for the year, following the likes of Sanctuary, Hyde, EMH Group and Stonewater (see box below).
However the association implied it is on course to hit its target of building 5,500 homes between April 2018 and March 2025. It has completed 1,616 homes in that time and started work on a further 3,885.
Guinness reported a 36% drop in its surplus to £44.6m, however this was due in part to the previous year’s figure being boosted by £94m due to a stock swap with Paradigm Housing. Its turnover grew 7.2% to £388.2m aided by a 2% increase in income from social housing lettings.
See also>> How do we boost housing association development?
Guinness’ operating margin on its social housing lettings of 24.5%, marginally down on the 24.8% last year.
It said: “We have maintained our operating margin despite a challenging external environment and rising cost inflation particularly in labour and materials costs which form a large part of our expenditure.”
Meanwhile, 34,000-home association Midland Heart reported a 46% increase in its surplus to £55.6m. The figure was boosted by a stock swap with Orbit Group, which generated £7.5m in surplus and increased shared ownership sales.
Housing association financial statements 2021/22
Onward Homes reports £22.5m loss due to refinancing costs and write-downs 35,000-home north-west association ‘on target’ to build 1,400 homes by 2024
Clarion boosts surplus by 52% Housing association income increased due to near doubling of open market sales turnover and sale of stock to other providers
Stonewater reports halving of surplus and missed build targets as costs hit 34,000-home housing association hit by increase in operating costs
Moat misses build target but revenue rises South east-based social landlord reports £181m turnover but feels impact of labour and materials squeeze
Metropolitan Thames Valley’s surplus falls 33% following tower block fire costs 57,000-home housing association’s balance sheet hit by multiple factors, including increased operating costs and a fall in home sales
L&Q’s surplus plunges after admitting major write down Housing association giant reports series of impairments reducing surplus by £53m
Orbit sees housing completions rise Materials and labour shortages mean growth was slower than expected for 47,000-home social landlord
Peabody boosts turnover and surplus due to shared ownership staircasing Housing association giant plans to start work on 7,000 new homes by March 2023
Sanctuary misses development target by a third due to ‘pandemic effects’ Housing association giant undershoots target but increases completions 34% year-on-year
Vivid increases development to above pre-pandemic level 33,000-home housing association completes 1,400 homes
Platform scales back targets for development and energy efficiency 46,000-home housing association increases turnover boosted by increased shared ownership sales
Later living giant Anchor posts £24.4m surplus following loss last year Housing association ‘on track’ with increased 5,700-home development plan
Hyde delivers fewer social homes than expected due to ‘delays and shortages’ 48,000-home housing association delivers 74% of affordable target, but hits lowered development target overall.
EMH Group misses development target by 40% Housing association says build hit by planning delays, materials shortages and pandemic impacts but is confident of hitting five-year target
No comments yet