Home Group boosts development as it continues to target affordable home ownership

Home Group built more homes than it expected in the first nine months of the financial year as it targeted increased affordable home ownership completions.

The 56,000-home provider, in a trading update, said it completed 952 homes in the period to 31 December, up 7% on the 890 delivered in the same period last year.

The group’s completions for social and affordable rent fell from 552 to 306, however this was more than offset by an increase in affordable home ownership completions from 27 to 274 and a rise in open market sales from 84 to 153. Homes delivered through joint ventures through ‘flexi-rent’ schemes (a mix of market and intermediate rents) also rose from 183 to 219.

Home Group said it has seen strong demand for shared ownership across all its regions. Its overall sales increased from 308 to 504 and within that shared ownership sales more than doubled from 103 to 217 completions.

It said: “Build completions [are] ahead of expectation through strong project management. The targeted increase in affordable home ownership completions has contributed to our sales success year to date.”

Home Group in the unaudited update also said its turnover for the nine-month period increased from £368.7m to £380m while its surplus rose 37% from £26.2m to £35.9m.

The provider also said it has carried out stock condition surveys of 93% of its homes and is working with staff and residents on the remaining 7%.

It said it has incurred a further £8m in building safety costs in the nine-month period, on top of £8.3m the previous year.

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The group is also piloting a new automated system for tackling damp and mould ahead of the implementation of Awaab’s Law in October.

Home Group last month announced it had secured new credit totalling £260m as it seeks to invest nearly £1bn in developing new homes and upgrading existing stock.

The 56,000-home landlord has agreed a new revolving credit facility of £110m with Barclays. It has also extended its existing facilities with Lloyds (from £200m to £250m), HSBC (£125m to £175m) and Nationwide (£90m to £140m).