Accounts also confirm £80m deficit after building safety costs and write-downs

Metropolitan Thames Valley has increased its annual expenditure on developing new homes and acquiring land by 40%.

The 56,000-home housing association, in its financial statements for the year to 31 March, said it spent £280m on acquiring land and developing new homes in 2023/24, up from £199m the previous year.

The group completed 892 homes, up from 657 and increased its five-year development pipeline from 3,858 to 5,556 homes.

It said: “We plan to create 10,924 homes over the next 10 years, delivering social value by delivering the affordable housing the country requires.

“This is evidenced by the investment of £280m in acquiring land and building new homes this year which was impacted by the recovery from the pandemic and the temporary pause in investment following the impact of the September 2022 budget statement on funding markets, which enabled a re-appraisal and review of schemes in flight in the pipeline. Activity has since resumed with the reinvestment metric slightly above the prior year.”

MTVH’s target for 2024/25 however, is lower at 533 new homes.

Metropolitan Thames Valley Housing’s accounts also confirmed an £80m deficit, down from a surplus of £33m the year before.

The 56,000-home association’s financial statement for the year to 31 March confirmed previously trailed figures showing its balance sheet has been hit due to building safety costs and write-downs.

During the 2023/24 financial year, MTVH’s board decided to account for £110m in its accounts for net building safety and non-recurring costs.

The £110m will cover anticipated costs over the next five years related to fire safety works to leaseholders’ properties and write-downs to the value of “end of life” buildings that will need to be decommissioned.

Of this, MTVH has allocated £78.4m on fire safety remediation works, £34m for decommissioning buildings and £2.6m for Worcester Park, an MTVH-owned block in South West London that was built by the Berkeley Group and was destroyed by fire in September 2019.

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MTVH’s operating margin before building costs was 30% before building safety costs, but it dropped to 4% after taking into account these costs.

Excluding the building safety and non-recurring costs, MTVH’s operating surplus for the year was £126.6m, up 4% from £121.7m in 2023.

In the year to the end of March 2024, group turnover was up 8% at £423m, compared with £389m in 2023.

This increase was driven largely by the statutory rent increase of 7%. The group’s social housing letting income was £351m, up from £322m in 2023, an overall rise of 9% year-on-year.

Revenues from MTVH’s other operations, including its care and support services and market rent portfolio increased from £36m to £40m during the year, owing primarily to development agency services growth.

Housing association financial statements 2023/24 

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Karbon increases development but sees margins squeezed due to hike in repairs costs Newcastle-based landlord builds 644 homes in 2023/24

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Platform Housing’s surplus falls due to pension scheme exits costing £18m The Midlands-based housing association also cited cost pressures from investment in homes, customer services, and high inflation

Bromford Housing reports increase in turnover, but higher operating costs Housing association cites  higher repair volumes

Clarion reports drop in turnover and surplus as it takes ‘cautious’ approach to development Housing association giant increases spend on existing stock from £393m to £418m

Sanctuary increases turnover despite 35% drop in sales income  Giant housing association misses development target

Turnover and surplus up at Onward Homes North-west housing association increases shared ownership sales income

L&Q trebles surplus as operating costs fall The 109,000-home housing association has spent £112m on capital works as it shifts expenditure towards existing homes

Jigsaw Homes delivers ‘record’ 929 new homes and increases surplus The housing association’s surplus increased by £8.5m during the year

Wheatley boss warns build pipeline depends on Scottish government grant funding 94,000-home group reports fall in annual development and warns government budget cuts will affect build rates

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