Platform cuts build programme due to supply chain problems

Platform Housing Group has lowered its forecast completions for the 2021/22 financial year due to problems with materials shortages.

The 46,000-home housing association said it now expects to “build between 1,300 and 1,400 homes in the year to March 2022, which is down on previous estimates of 1,500 due to materials shortages and supply chain delays”

It said: “During the year our home building programme has been affected by an increase in global demand for materials, the impact of Brexit and the last national lockdown in the UK. These have resulted in sharp increases in materials costs and extended supply times.”

Platform’s investment in new and existing homes fell by 3.9% to £98.1m in the six months to 30 September, an update published today shows.

See also>>Housing association accounts 2020/21 coverage all-in-one-place

Despite the supply chain problems, Platform increased its turnover for the six months by 12% to £150.5m. It completed 715 homes in the half-year, up from 393 last year in the midst of the pandemic lockdown.

Platform’s comments follow the Regulator of Social Housing’s quarterly survey of housing associations in England last week that showed spend on new and existing stock was 32% lower than forecast in the second quarter of the financial year. RSH said development out-turn expenditure was “lower than forecast due to the impact of supply issues over the quarter.

Another housing association giant, Sovereign, also revealed earlier this month that its build rate has been halved following materials shortages.