Sanctuary increases turnover despite 35% drop in sales income

Sanctuary’s annual turnover has broken the £1bn barrier despite a steep drop in sales volumes.

The 125,000-home housing association giant, in its financial stataements for the year to 31 March, reported turnover of £1.1bn, up from £944m the previous year.

The 15% increase in overall revenue is despite the fall in sales income. The group recouped £59.8m from the sale of developed properties in the year, down from £92.1m the previous year. The landlord sold 336 homes in the year, down on its target of 475.

It said: “The number of homes sold in 2024 was below target as scheme completions were delayed due to site delays and contractors going into administration.”

The drop was offset by growth of 8.9% in revenue from its affordable housing stock, an 18.8% increase in income through its care business bolstered by the acquisition of Conrnwall Call and a 14.2% increase in its student housing business turnover.

Sanctuary’s financial statements also revealed it has missed its overall development target for the year.

The landlord completed 1,032 homes in 2023/24, which is down 19% on the 1,278 completed last year and below its 1,420-home target. The reduction comes at time when many large housing associations, including L&Q and Southern, are reporting falling numbers of completions as they focus on existing stock in a constrained environment.

Sanctuary’s overall pre-tax surplus rose from from £125m to £207m, reflecting a £162.7m gain due to the providers’ acqusition of 5,000-home Johnnie Johnson Housing Trust.

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Its underlying surplus for the year, which excludes one-off items, fell from £62.7m to £41.2m due to finance costs related to Swan Housing Association, the provider Sanctuary rescued last year following the former’s regulatory and financial difficulties. Excluding the Swan costs, Sanctuary’s underlying operating surplus dropped slightly from £58.5m to £56.5m.

Sanctuary increased the amount spent on existing homes in the year, from £102.6m to £115.1m.

It has brought 389 homes up to Energy Performance Certificate C through the Social Housing Decarbonsiation Fund and plans to retrofit a further 1,653 in the next 18 months.

Ed Lunt, chief financial officer at Sanctuary, said: “We are pleased with our financial results for the year and the group remains in robust financial health.

”We have delivered record investment in our customers’ homes, despite the financial pressures, and have successfully undertaken the rescue of a financially troubled peer for the benefit of residents and their homes, as well as the wider social housing sector.”