Staircasing slowdown dents large East of England landlord’s surplus

Operating surplus in the division more than halved year on year, to £3.3m. An impairment of £300,000 on a development scheme also knocked the bottom line.

The slowdown in staircasing came despite the number of BPHA’s first-tranche shared ownership sales increasing to 66, compared with 56 in the same period last year.

In its last full year, BPHA was affected by a drop-off in shared ownership sales.

However, other landlords have reported strong interest in shared ownership of late, and Platform said the number of reservations it received on properties in September was the highest since April 2021.

Despite the slowdown in staircasing, BPHA’s overall half-year turnover was up by 10%, to £64.2m. Higher rents and extra properties drove up revenue.

However, increased net interest costs of £17.4m dragged the overall surplus down.

A total of 158 homes were completed, which was 61 more than the 2021-22 half-year, the group said.

BPHA’s core operating margin was 41%, down from 43% last year, due to a “significant rise in repair volumes and costs”.

The landlord spent £19.9m on repairs and maintenance in the six months, compared with £17.2m the previous year.

As of 30 September, BPHA had total debt facilities of £997m, with £124m remaining undrawn. Cash reserves were £10m, compared with £26m at the same point last year.

Julian Pearce, BPHA’s chief financial officer, said the group remained “financially robust, with strong liquidity” and the core business “continues to perform resiliently in the face of significant market headwinds”.

In October, S&P reaffirmed BPHA’s credit rating as A+ (stable). Following that, the Regulator of Social Housing confirmed the group’s G1 and V1 viability ratings.

Just over a year ago, a proposed three-way merger between BPHA, Flagship and Futures Housing Group was abandoned, with the groups blaming the economic climate.