Large Midlands landlord eyes ‘record levels’ of spending on homes as surplus doubles

The Birmingham-based group had “some of the oldest homes of any housing association in the country”, Mr Reeves said.

It planned to complete an “extensive programme of works” to make its homes more energy efficient and “fit for modern living”, he added.

The landlord spent £30.5m on improving its existing stock in its last full year. Overall, its operating costs rose in its latest half-year, to £87.6m, up from £82.9m, which it said was partly due to maintenance expenditure. Across its portfolio, 78% of homes now have an Energy Performance Certificate rating of Band C or better.

On development, Midland Heart completed 269 homes in first half of its financial year, compared with 253 in the same period last year.

The group said it was on target to build and acquire 4,000 new homes as part of its current corporate plan, which ends in 2025.

Midland Heart’s half-year turnover rose by 10%, to £125.2m, helped by rent increases, taking on more properties and the sale of 96 first-tranche shared ownership homes.

On an operating basis, the group reported a surplus of £60.5m, up from £34.4m the previous year, helped by the one-off sales of retirement properties.

Its overall operating margin was 30.1%, a rise from 27.5% at the same point last year. Gearing was 27%, compared with 30.8% in the previous half-year, the group said.

Midland Heart, which celebrated its centenary this year, currently has a G1/V1 rating with the regulator. It has yet to be assessed under the new consumer standards.

In August, it posted an increased surplus and turnover but falling income from shared ownership sales in its 2023-24 annual results.