Notting Hill Genesis posts deficit of £82m due to building safety costs and asset impairments

“We have therefore concluded that continuing to develop new homes at the same rate would not be financially sustainable and would jeopardise our ability to make the much-needed improvements to residents’ homes,” it said.

The move will free up capital for investment in its estate, NHG said, which is set to rise “from £500m over the next 10 years to £770m”.

The housing association will focus on regeneration schemes in future and still plans to deliver “around 3,000 new homes over the next five years”.

“Our social purpose of providing affordable homes for Londoners has never been more important. It guides all our decisions and is enabled by our financial strength,” NHG said.

“Going forward it is critical that we maintain and build this resilience to ensure we have an organisation that can sustainably deliver the housing Londoners so desperately need.”

Completions were up in 2023-24, with low-cost rental completions more than doubling from 217 to 446.

Low-cost rental starts dropped, from 353 to 263, but shared ownership starts jumped more than 600% year on year to 344.

In April, NHG issued a deficit warning in a statement to the stock exchange. It first warned in November 2023 that a fall in the sale of new homes and increased repair, building and fire safety costs would impact its operating surplus.