Notting Hill Genesis reveals new homes down by a third

Housing association Notting Hill Genesis has reported a 32% drop in the number of completed homes and reduced next year’s target, despite a rising surplus. NHG completed just 1,342 homes last year, down from 1,962 a year earlier, its financial results reveal. The company achieved 70% of its target of 1,892 new homes for the year. It said completions were delayed due to site closures at the start of the financial year, but it does not expect to pick up pace. Like many other housing associations, NHG has reduced its development targets to continue to deliver affordable housing and meet building safety costs. NHG has more than halved its new home completions target in two years, dropping from 2,986 homes to 1,892 last year, and now set at just 1,400 new homes. It spent £335m on housing in 2020, down from £468m in 2019 and £654m in 2018. The housing association said it expects to stay at a level of £300m to £400m over the next few years. The forecast comes despite a significant rise in its surplus. NHG recorded a surplus of £144.7m, largely driven by the £140m sale of its 1,000-home Canada Water site to Art-Invest. Some £80m of this was received during the calendar year, with a further £60m due next January. The boost saw NHG’s surplus climb 48% year-on-year, with turnover up 24% to £909.1m. NHG said the scale of committed development had exposed the company to a rising number of unsold homes, peaking at 610 in March 2020. It had managed to reduce this to 548 at the end of the period, through a number of bulk sales – such as the £55m sale of Peckham Place (pictured) to DWS – alongside individual sales and rental transfers. However, despite climbing revenue, the housing association reported a rise in operating costs attributable to higher general needs service charges and management costs. NHG expects to spend £230m on building safety, of which £173m will come from its own resources. Chief financial officer Paul Phillips said: “This has been a difficult year as we’ve sought to support residents and our own people through the uncertainty of the pandemic, and to address significant challenges associated with building safety. “Nevertheless, the results give our customers, investors and other stakeholders confidence in our ability not only to withstand challenges within the housing sector, but also to continue to deliver homes for a range of needs across the capital.” To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews