Inside Housing – News – Bromford increases surplus as it exceeds development target
Midlands housing association Bromford recorded an increase in revenue and surplus as it exceeded its development target for the year, its latest accounts have revealed.
For the year ending March 31, 2022, the owner recorded £283.8 million in revenue, while pre-tax surplus was £79.2 million, compared to £61.9 million. pounds sterling last year.
In development, Bromford exceeded its housing construction target, delivering 1,224 homes against a target of 1,200 for the year. Of these, 253 were built by the association’s in-house construction team.
More than a third of new homes – 444 – were built for social rent, which Bromford says is “the highest of any provider in England”.
In terms of sales, Bromford said it sold 70% of the homes it had built for sale or condominium within a month of completion.
Initial housing costs per house were £3,550, down from £3,330 the previous year. Bromford said the higher annual cost was due to higher-than-expected maintenance and repairs throughout the year, with 2021 and 2020 spending artificially low due to pandemic restrictions.
Routine maintenance totaled £100m, up from £80m a year ago. Bromford have raised their target per house to £3,750 in the 2022-23 financial year.
The association, which operates across the west of England, including Gloucestershire and Staffordshire and the Marches, as well as central England, has 45,658 homes under management.
Delays in processing a backlog of repairs caused the average tenant satisfaction rating to drop from 85% to 79% for the year.
The landlord warned that he sees the cost of living crisis as his main issue for tenants in the coming year.
Robert Nettleton, Bromford’s chief executive, warned that an “inflationary” environment could impact its key margins going forward.
He said: “We are heavily hedged on financial costs and are relatively insulated from property price volatility, we are aware that higher cost pressures can impact margins.
“We are proud to have delivered for two consecutive years the largest number of social housing units in England. Social rented housing has considerably lower rent levels than affordable rented housing. In our area of operation, the average difference is £116 per month, enabling more of our clients to thrive financially. »
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