Saturday, 19 April 2014

Affinity writes down £13m

Mega-association Affinity Sutton has written down losses of £13 million in its 2008/09 accounts - the biggest-ever write-down by a housing
association.

The punishing write-down slashed more than a third off the 54,000-home landlord’s bottom line, cutting its surpluses for the year from
£33 million to £19.6 million.

A spokesperson for the Tenant Services Authority said: ‘We are not aware of any higher impairment charge this year, or in any previous years [in the sector].’

Mark Washer, group finance director at Affinity Sutton, indicated that the write-down’s size was in part because it had not taken large sums of bailout grant from the Homes and Communities Agency.

Many associations have been able to avoid hefty write-downs by receiving extra grant from the HCA to convert homes and schemes to rent. Mr Washer said Affinity’s ‘great result’ had been achieved ‘without recourse to exceptional public funding’.

He added: ‘Against the backdrop of the recent recapitalisation of schemes in a number of associations, which required significant additional grant to change the use of planned schemes so as to avoid serious financial consequences, Affinity Sutton managed its exposures independently.’

In April, the association told Inside Housing it had only been allocated £1.5 million of extra grant to convert the tenure of unsold homes.

The write-down covers expected losses on unsold homes, homes currently in development for sale, sites in the group’s land bank, and a joint venture set up with the developer Galliford Try.

Have your say

You must sign in to make a comment

sign in register

Related

Articles

Resources

  • Managing expectations

    6 June 2013

    With landlords under pressure to demonstrate value for money, Stuart McBride, from law firm TLT, examines how to address poor employee performance

  • The rise of the bungalow

    24/05/2013

    Britain needs more bungalows, according to a new report. Here, Richard Baines examines if single-storey homes can ever be a sustainable - rather than simply popular - housing solution

  • Bringing a post office back into the community

    07/03/2014

    Much to the delight of the local people, Scottish Borders Housing Association has opened a Post Office at its headquarters in Bannerfield, the first ever branch outside a retail unit. Maria Brett reports on the initiative

  • Luxury Lets

    19/04/2013

    A south west-based housing association is taking the unusual step of converting some of its properties into holiday homes. Alex Turner visits Bath to find out more

  • The long road to justice

    09/08/2013

    The High Court’s decision regarding the bedroom tax and disabled people is just the beginning, says Jane Plant, an associate at Weightmans