Shared ownership revenue at large South of England landlord drops a third in half-year

Aster did not disclose a margin on the sales or surplus. In its trading update, the Wiltshire-based landlord said its first-tranche sales had “performed well”.

But it added: “The property sales market remains challenging for all first tranche, open market and joint venture sales.”

Other landlords have experienced a drop in shared ownership sales, too. Last month, Paradigm reported a 26% drop in revenue from first-tranche transactions.

The Bank of England cut interest rates today for the second time in a row, but it remains to be seen if this will have a significant impact on the housing market.

Overall, Aster reported that its pre-tax surplus in its latest half-year fell by a fifth, year on year, to £18.6m, after what it called “another challenging period”.

Operating costs were broadly flat year on year, but the group’s finance expenses edged up to £17.4m, compared with £16.4m in the same period last year.

Turnover was down slightly, at £158.6m.

Aster, which operates across the South of England and London, spent £51.8m on its existing homes in the six months. It said it has adopted a “proactive approach” to preventing mould and condensation in its properties.

On development, the group revealed it completed 402 homes in the period, which was a 25% drop on the previous half-year’s total of 533.

Aster’s overall operating margin was 17.9%, down from 18.8% in the previous half-year.

In the summer, Aster announced it planned to spend £585m on developing around 2,300 homes by March 2026. 

The group currently has a G1/V1 rating with regulator, but has yet to be awarded a grade under the new consumer standards.