North-west housing association increases shared ownership sales income
Onward Homes has posted an 11% increase in its annual turnover.
The north-west based housing association, in its annual financial statement for the year to 31 March, reported total turnover of £190.4m, up from £171.9m the previous year.
The figure was boosted by an £18.6m increase in social housing lettings income, while its revenue from shared ownership first tranche sales rose by £2.7m to £11.2m.
The group said prices rose faster than the 7% maximum rent increase allowed by the government, which “put pressure on the operating surplus”. The group’s overall surplus increased slightly to £11.5m, compared to £11m last year, while its operating surplus, which excludes one-off items such as certain interest costs, rose from £19.8m to £25m.
Onward completed 329 homes in 2023/24, similar to last year’s figure of 308. It intends to deliver 383 this year.
The group said: “Although this is in line with our target, it is below the peer group average as we have deliberately slowed our development programme over the last two years amidst high interest rates, political uncertainty and rising construction costs. This strategy allows us to retain sufficient capacity to invest in new homes and retrofit projects in the future.”
Onward said it’s investment of £3m in Hive Homes, a joint venture between 10 Greater Manchester providers and Greater Manchester Combined Auuhority will deliver 600 homes.
>>See also: ‘Enabling people to be their best in a home they love’: Talking growth with Bronwen Rapley
>>See also: Onward Homes chief executive appointed chair of Homes for the North
It also said it is developing 350 mixed-tenure homes at schemes at Basford East, near Crewe, Lancashire, and Helsby in Cheshire.
These schemes were paused in 2023/24 due to a contractor going into administration. It said the Helsby scheme is now back on site with a new contractor, although the Basford East scheme is still paused.
Onward said it is on track to meet its target of delivering 5,000 homes between 2022 and 2030.
The housing association said however that investing in existing homes remains its priority. It increased its investment in existing homes from £29.4m to £31.6m year-on-year.
Housing association financial statements 2023/24
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