Thursday, 02 October 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

  • Picture this

    26 September 2014

    The big fish are nibbling at the little fish, general needs housing stock has reached 2 million homes for the first time and affordable rent is spreading faster than you can say ‘core purpose’. Inside Housing has picked snapshots from the Homes and Communities Agency’s 63-page statistical data return as of 31 March 2014 to compare with the previous year’s data. Daniel Douglas reports

  • Social landlord reports record £75m surplus

    29 July 2014

    Affinity Sutton has reported a record £75m surplus, despite deciding to limit its exposure to the sales market.

  • Cash in hand

    18/07/2014

    London landlords are set to report a £1bn surplus this year. So just how vital is it to their social purpose? Peter Apps investigates

  • Landlords asked to carry out stress tests

    29 May 2014

    HCA wants providers to examine possible impact of a housing market crash

  • Sector faces £4.5 billion accounting hit

    21/02/2014

    Rule change could push associations close to deficit

Resources

  • 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

  • Reaching crisis point

    02/05/2014

    Tenants on the verge of eviction are being helped to remain in their homes by a recently formed social enterprise that is saving their landlords significant sums in the process. Daniel Douglas finds out how

  • Downsizing with the bedroom tax

    17 July 2014

    The price for underoccupying a home is high for many vulnerable people. Jess McCabe visits Stoke-on-Trent to find out how landlords are attempting to help

  • Room for procurement savings

    14/03/2014

    Scotland’s social housing sector is still dogged by the spectre of unnecessary procurement costs but it could save up to £42 million per year

  • Acting out to tackle domestic abuse

    28/03/2014

    An interactive training course is helping housing professionals in the south west identify and tackle domestic abuse. Lydia Stockdale finds out how

IH Subscription