Peabody development falls more than 40% as it focuses on 'getting the basics right'

Peabody completed 1,381 in 2023/24 according to an unaudited trading update.

The figure is 42% down on the 2,399 figure completed the previopus financial year.   

The housing association invested £533m in new homes in the 12 months to the end of March this year, making 1,157 new starts on site, down on the 2,376 figure previously.

According to the update, issued ahead of its annual report later this year, turnover for 2023/24 was £992m, with £855m coming from core operations including £774m from social housing lettings. 

Peabody said its operating margin was set to be at a similar level to last year (23%), despite “significant cost pressures”. 

The organisation spent £374m on existing homes during the period, including £64m on fire safety remediation and £175m on planned maintenance and responsive repairs. 

Almost 80% of its homes are now EPC C rated following a £135m investment in improving the condition and environmental performance of homes. 

Ian McDermott, Peabody chief executive, said: “This has been a year of good progress but we know there is much work to do. We’re transforming our services and investing in homes and sustainable places for the long-term.  

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“Our local focus and commitment to getting the basics right remains a strategic priority. Our plan is to spend around £2bn over 5 years - or around £1m a day - on improving and maintaining residents’ homes.  

“This is the right thing to do and will bring material benefits.  Over time it will help to reduce the volume of responsive repairs and complaints and improve residents’ satisfaction with our landlord services.”

This is Peabody’s second year of trading incorporating Catalyst Housing and its subsidiaries as part of the group. 

After a post-merger review, Peabody’s group board has set out on a project to sell commercial land and other non-core assets.