UK’s largest social landlord records surplus increase of 9% amid rising operating costs

Clarion noted that the increase has been partially mitigated by lower costs across a number of areas, including a reduction of the bad debt charge by £4m, £8m lower abortive development costs and £9m reduction in care and support services due to the disposal of Invicta, its telecare and support service for vulnerable older people.

The housing association invested nearly four times its net surplus – £631m – in new homes and £102m in improving its existing homes.

A record 2,101 new homes were completed, making it the third biggest builder in this year’s Inside Housing Biggest Builders Survey. These completions represent a 69% increase on the previous year, with 86% of these completions for affordable tenures.

Shared ownership first tranche income increased by £16m (618 sales compared with 489 in 2019) and open market sales grew by £17m – both reflecting the growing development programme, Clarion said.

Mark Hattersley, chief financial officer at Clarion, said: “We are pleased to report a strong and resilient performance for the last financial year, exceeding our targets across a range of measures and completing more new homes than ever before.

“These accounts detail results up to the end of March this year, and while so much has changed in the world since then, this highlights the strength of Clarion’s position as the pandemic hit.”