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Network Homes boosts surplus by 62%
Large housing association Network Homes boosted its surplus by 62% last year, its annual accounts have revealed.
The accounts showed that its surplus grew to £72m, a significant increase on the previous year’s figure of £44.3m.
Network’s turnover, meanwhile, also increased, going from £234.4m to £275.1m. Network said that both these increases, as well as a jump in the association’s operating margin, were down to the sale of all the student accommodation owned by Student First, one of Network’s subsidiaries.
The 20,000-home social landlord has not been immune to the difficulties faced by housing associations in London and the South East of England that operate in the private housing market.
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Such organisations have struggled with falling prices as Brexit exacerbates existing economic uncertainty in those regions.
Network recorded an overall loss of £730,000 on outright sales of non-social housing for the year, which it said was due to it having to spend £436,000 on the costs of sales made in previous financial years and £670,000 on marketing fees for its Thrayle House development.
Over the year, Network invested £250.3m in new development and built 776 new homes, 765 of which were affordable.
Helen Evans, chief executive of Network Homes, said: “Network Homes has performed well in the face of a continuing unpredictable political environment, ongoing Brexit uncertainties and a difficult property market, and I am proud of the results we have achieved this year.
“While these challenges are likely to remain on the horizon for some time to come, Network Homes is well placed to tackle them.”
Network’s accounts also gave an update on the housing association’s ongoing response to the Grenfell Tower fire, which killed 72 people in 2017.
It said it has established an in-house project team to implement the recommendations of Dame Judith Hackitt’s review of building regulations.
It is still working on removing aluminium composite material cladding, the same kind that was used on Grenfell, from four of its developments.
Network added that it is investigating around 40 other buildings with different cladding systems to ensure that they are safe.
Update: at 16.25 on 17.9.19 This story was updated to correct the number of homes managed by Network from 18,000 to 20,000.
Housing association financial statements 2018/19
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