23,000-home association misses annual development target

Moat Homes has reported a drop in surplus and turnover, as its social housing lettings margin fell sharply.

accounts balance sheet

The 23,000-home association, in its financial statements for the year to 31 March, said its surplus more than halved form £45.9m to £20.9m. Its operating surplus, which excludes one-off costs, fell from £61.7m to £44.6m.

The group’s turnover fell from £160m to £154.

The figure was impacted by a £15.6m drop in income from open market sales and a £2.2m fall in revenue from shared ownership first tranche sales. This was offset by a £12.6m increase in social housing lettings income.

The group said its operating margin from social lettings has reduced to 28% from 35% last year. It said: “The reduction was driven by higher spend on repairs from increasing volume and costs, and investments in skills and capacity”. The group increased its spend on existing properties by £20m to £51m.

The Kent-based landlord completed 354 homes in the year, down from 459 last year and below its original target of 419. It said however it is on target to meet its target of building 505 homes in 2024/25 and has 1,304 homes under development.

It said: “We have experienced some delays in handovers, due mainly to extensions of development periods agreed with developers and delays to planning condition sign-offs. The homes that have rolled over into 2024/25 will mainly handover by June 2024.” Moat acquired 603 homes in the year from a stock transfer from another registered provider.

Housing association financial statements 2023/24

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