Extra-care specialist considering sell-off of non-social rent portfolio

The landlord’s total revenue increased by more than £25m in 2022-23, to £251.5m, although its operating surplus fell by more than £4m, to £26.4m.

The number of properties it owns and manages has increased to nearly 23,000. This has been helped by a number of acquisitions over the past 12 months. 

Clarion sold 445 properties to Housing 21 in June, which included 11 schemes in London, East Anglia and the South East.

In February, the landlord bought 472 properties from Notting Hill Genesis to increase its presence in London.

In its accounts, the landlord explained that the acquisitions were part of a drive to grow by taking on the management of older people’s properties from other registered providers that are keen to focus on other priorities.

Looking ahead, Housing 21 said it expected to complete on a further 547 properties during the 2023-2024 financial year.

On development, the landlord delivered 289 homes in 2022-23, fewer than the 691 delivered in the previous financial year, and lower than its target of at least 400 new properties per year. 

Starts were also below target, at 231.

The landlord put this down to significant market pressures resulting in delays to development and cost pressures.

This included a number of its development partners going bust throughout the year, which resulted in schemes costing more to complete.

In his foreword to the accounts, Bruce Moore, chief executive of Housing 21, said: “This was not due to a lack of desire or availability of funding, of which we had ample, but because of prior delays in schemes getting grant approval and other construction challenges. 

“We have a very healthy programme of prospects and hope that in future we will be able to meet our development goals, despite the continuing challenges of planning approvals and other pressures.”

Mr Moore added: “We have however seen an increase in acquisition opportunities. We believe there is potential for us to acquire more extra care and retirement living properties from other providers as they look at their services and choose to focus on their core areas of expertise.”