The Midlands housing association’s surplus falls by 39%
Orbit’s development has fallen 31% year-on-year as it focuses on improving its existing homes.
The 47,000-home association, in its financial statement for the year to 31 March, said it built 870 homes in the year, compared to 1,257 the previous year.
This marks the second-lowest number of homes delivered by the association in the past five years, with the lowest being 848 new homes during the pandemic in 2020/21. In 2021/22, Orbit delivered 1,013 homes.
Phil Andrew, who took over as chief executive in July 2023, said that over the last year, the sector has remained challenging.
He said: “Our [development] figures are reflective of our additional investment into repairs and maintenance, particularly in tackling damp, mould and condensation related issues, as well as progressing our net zero carbon works, all against a backdrop of increasing costs and a skills shortage.”
The group invested £119.4m in existing homes, including capitalised spend, up from £88.8m the previous year. The association said it has delivered major works and improved energy efficency of its stock.
A spokesperson for Orbit said: ”We have introduced a five-year planned investment programme which enables us to plan and deliver capital investment works in collaboration with our supply chain in a more efficient and effective manner.”
The association’s turnover decreased by £27m year-on-year to £391m, down from £418m in 2022/23, driven by a decrease in market and shared ownership sales, though partially offset by increased income from social housing rent.
Its surplus fell 39% from £89.6m to £54.9m. Its surplus from social lettings decreased from £90m to £83m while surplus on the sale of properties fell from £30m to £21m.
Income from market sales fell from £85m to £61m, while shared ownership sales turnover decreased from £63m to £41m.
Orbit’s operating costs increased by £27m to £213m. Operating costs on social housing lettings specifically rose by £27.2m. It invested £232.2m in developing new homes this year.
>> See also: Turnover and surplus up at Onward Homes
>> See also: L&G Affordable Homes buys 390 shared ownership homes from Orbit Group”
In April, the Housing Ombudsman reviewed seven cases of damp and mould at Orbit and issued 15 recommendations ordering the housing association to address these issues.
Andrew said: “We are fully accepting of these findings by the Housing Ombudsman and have striven to put things right and learn from them. This has included undertaking an independent review of our damp, mould and condensation approach, implementing organisational-wide training to increase understanding of customer vulnerability, launching a You and Your Home customer check-in pilot allowing us to discuss with the customer how we can best support them, and revising our complaint handling programme.”
He added: “We have delivered well against the Orbit 2025 Strategy, retaining our robust financial position, the delivery of high-quality new homes, and making good progress on our journey to improve our customer services.”
The 47,000-home housing association also said it will also increase its land-led, direct build capacity and aim to become the partner of choice for Homes England and local authorities in its operational area, which spans the Midlands, East and the South-east.
Housing association financial statements 2023/24
Turnover and surplus up at Onward Homes North-west landlord posts an 11% increase in its annual turnover
Peabody turnover down 11% due to reduced sales and site delays Landlords scales back development and invests more in improving existing stock as it shifts to neighbourhood model
Guinness undershoots development target by nearly half Landlord says resource pressures and contractor administrations hit annual development figures
Housing delivery up 31% at Places for People Repair and maintenance spend exceeds planned budget
Flagship boosts surplus by 16% despite fall in open market sales and higher salaries East of England provider built 744 homes in the 2023/24
Aster’s surplus hit by higher interest costs and writedowns The housing association’s pre-tax profit falls 14% due to a combination of an increase in costs caused by inflation and an ‘all-time high’ investment in its homes
Abri invests ‘record’ £100m in existing homes but sees 19% dip in annual completions The 50,000-home housing association reports ‘exceptional’ surplus of £518m due to merger with Silva Homes.
Hyde Group misses build target by nearly half as it’s hit by £39m in write-downs 44,000-home association reports 78% drop in surplus as it is hit by contractor insolvencies on two schemes
Home Group increases development 17% Home Group handed over 1,284 homes last year, according to its financial statement for the year to 31 March 2024.
Moat reports squeezed margins and lower surplus Moat Homes has reported a drop in surplus and turnover, as its social housing lettings margin fell sharply.
Midland Heart increases development as it eyes 4,000-home target 35,000-home association increases investment in new build and improving existing stock
LiveWest undershoots affordable homes target due to delayed starts on site South west-based association built fewer affordable homes in 2023/24 than its target due to “site specific” issues.
Paradigm exceeds development target Buckinghamshire-based housing association says new build “central part” of mission as it increases surplus and turnover
Karbon increases development but sees margins squeezed due to hike in repairs costs Newcastle-based landlord builds 644 homes in 2023/24
BPHA boosts turnover but reports deficit due to one-off refinancing costs Bedfordshire landlord increases completions by 20%
Vivid increases development to more than 1,500 homes a year Housing association boosts development by 10% in face of surplus squeeze
Southern stops committing to new developments as surplus falls 80,000-home housing association ramps up spend on existing homes
Surplus down but turnover rises in SNG’s first post-merger financial accounts The merged organisation, which is aiming to develop 25,000 new homes over the next decade, says its balance sheet is ‘robust, diversified and resilient’
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
No comments yet