You are viewing 1 of your 1 free articles
Large London association sees home sales plunge 75%
A drop in outright sales and increased fire safety costs have hit Metropolitan Thames Valley Housing’s (MTVH) revenues, its latest accounts revealed.
The number of outright sales at MTVH fell by 75% in a year, the association’s annual report has shown.
The financial report for the year to the end of March 2022 showed that outright sales had dropped from 151 homes in 2021 to a mere 38 this year, with revenue falling from £65m to £17m.
Underlying outright sales profit had halved to £4m, down from £8m in the previous year.
Turnover stood at £406m, down from £446m in 2021, with operating surplus before non-recurring costs for the year standing at £135m, down slightly from £138m in 2021.
READ MORE
However, two one-off charges relating to fire safety works at Richmond House in Worcester Park meant that operating surplus dropped to £122m.
Surplus after tax fell by £21m to £40m. Margins stayed relatively stable at 30% compared with 31% in the previous year.
MTVH invested £19.4m in its remediation of historic fire defects, up from £13.6m in the previous year. The remediation work included £3.7m in conducting surveys and assessments.
The association said it delivered 712 new homes over the course of the year, with 11 homes for rent, 165 for shared ownership, 30 for private sale and 356 as part of joint ventures.
The figures were lower than the 923 delivered in 2021.
The landlord’s development pipeline stood at 5,527 homes, down from 6,239 in the previous year.
Commenting on the slowdown in development, MTVH said: “We have seen a reduction in the number of new homes we provided during the year.
“This is in large part due to the economic impact of the pandemic, which invariably slowed construction of new homes on our sites.”
The annual report also noted that 94 complaints had been referred to the Housing Ombudsman, with 12 findings of maladministration, 30 of service failure and two of severe maladministration over the year.
Sign up to the Social Housing Annual Conference 2022
The Social Housing Annual Conference is the sector’s leading one-day event for senior housing leaders, which delivers the latest insight and best practice in strategic business planning. The conference will provide multiple viewpoints and case studies from a variety of organisations from across the housing spectrum, including leaders in business and local and central government.
Join your peers for a full day of intensive, high-level learning, networking and informed debate addressing the most crucial topics surrounding finance, governance and regulation to help the sector understand and manage the pressures it faces.
Find out more and book your delegate pass here.
