G15 landlord sees surplus tumble by 71% and warns of completions slowdown

News03.09.2012.00 PM by Dominic Brady

London housing association Network Homes has recorded a 71% drop in its surplus owing to increased building safety costs and the one-off sale of assets the year before, while warning that completions may drop off due to the COVID-19 pandemic.

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G15 landlord sees surplus tumble by 71% and warns of completions slowdown #UKhousing

“Onsite distancing measures are likely to delay completions of new homes and related expenditure for a period of time,” says @networkhomesuk chief #UKhousing

In its annual accounts for 2019/20, the 20,000-home landlord, part of the G15 group of London’s largest housing associations, said it has achieved a net surplus for the year of £21.1m, down from £72m in 2018/19.

Its turnover decreased by 25% from £275.1m to £205.7m.

Network said the results “are largely reflective of our increased spending on building safety but also the previous year’s figures were exceptionally high, mainly due to the sale of Student First, a subsidiary of Network Homes”.

The sale of Student First produced a 62% boost to Network’s surplus last year but this year’s surplus still represents a 52% reduction in from the pre-sale surplus of £44.2m in 2017/18.

Network, which operates in London and the South East, said the economic impact of COVID-19 is “currently unknown” but warned it could hit sales values, rates and overall income.