Group exceeds development target but posts £12.5m deficit after recognising fire safety costs  

Together Housing Group trebled its completions in 2023/24 but also posted a deficit as it was hit by increased operating and fire safety costs as well as an impairment charge.

The 38,000-home housing association, in its financial statement, said it built 1,038 homes in the year to 31 March.

This is exactly three times as many homes as the 346 completed the previous year and is equivalent to 2.7% of the group’s overall stock, meaning it exceeded its 2% development target for the year.

The Halifax-based group, which has increased its target to 2.5% for 2024/25, said the target was exceeded due to “catch up following previous programme delays.” The group said it is 115 homes ahead of schedule in delivering its target of building 2,500 new homes by 2026.

Together increased its turnover by 16% from £209.5m to £242.1m, this included a £15.4m increase in social housing lettings income, a £10.3m rise in shared ownership first tranche sales revenue and a £6.8m rise in market sale.

However, it posted a £12.5m deficit in 2023/24, compared to a £9.3m surplus the previous year. The decrease was due to increased operating costs, an impairment charge and increased provisions for remediation works.

>>See also: Together Housing gets £50m retrofit funding boost in first-of-its kind loan from RBS

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The group’s operating expenditure increased from £174.9m to £201.9m. This included a £15.6m increase in the cost of sales, a £6.3m impairment charge relating to “significant remediation works” needed on two high-rise blocks and £22.7m in fire safety costs identified.

The group’s surplus on disposal of housing properties also fell from £7.9 to £4m, while interest costs rose from £15.3m to £17.9m.

Housing association financial statements 2023/24

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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.

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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

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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

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Bromford Housing reports increase in turnover, but higher operating costs Housing association cites  higher repair volumes

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Turnover and surplus up at Onward Homes North-west housing association increases shared ownership sales income

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Jigsaw Homes delivers ‘record’ 929 new homes and increases surplus The housing association’s surplus increased by £8.5m during the year

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