You are viewing 1 of your 1 free articles
Jigsaw retains Moody’s A2 credit rating with stable outlook
Jigsaw Homes has retained its A2 credit rating with a stable outlook from Moody’s.
Jigsaw retains Moody’s A2 credit rating with stable outlook #UKhousingThe rating agency said the grading is partly down to the 37,000-home provider’s “risk-averse and consistent strategy”.
It also reflects predictions that the landlord’s performance will improve and profitability will return to the mid-20s.
Moody’s added that the rating includes the provider’s weaker interest coverage ratios and a likely rise in debt metrics.
The report stated Jigsaw’s operating margin reduced to 22% in the 2025 financial year due to a charge related to a developer going bust.
Read more
This metric is set to drop further, to around 21% over the next two years, forecasts show.
But the North West and East Midlands provider is predicting profitability will return to around 25% by the 2028-29 financial year.
The recovery will be driven by rental increases above inflation and a reduced reliance on subcontractors, according to the report.
The landlord is also seeing higher spending on repairs and maintenance and is working with consultants to “smooth out” an expected peak in its replacement of kitchens and bathrooms last installed between 10 and 20 years ago.
Jigsaw spent £98m on overall repairs and maintenance in 2024-25, equating to a £2,686 spend per home, according to Inside Housing’s repairs tracker, which can be viewed here.
The figure was a 16% rise on the previous year, and nearly half of the total sum (£41m) went on routine repairs.
The housing association is ramping up its stock condition surveys, with the aim of reaching 100% next year, and needs to retrofit 4,800 homes so they achieve Energy Performance Certificate C ratings by 2030.
It is also targeting building more than 3,000 homes in the next four years, of which four in five will be social or affordable rent and 18% will be shared ownership.
Jigsaw says it is expecting grant funding will cover a “reasonable proportion” of housebuilding costs, which it said is a credit positive as it limits debt funding.
The landlord, which formed in 2018, marked a record year for housebuilding in 2023-24 with 900 homes completed.
Last year, Jigsaw was ranked 20th in Inside Housing’s annual survey of housebuilding by housing associations, and also agreed more than £100m in new financing.
It is on track to complete 800 new homes in this financial year, according to its latest update in December.
Sign up to Inside Housing’s Development and Finance newsletter
Sign up to Inside Housing’s weekly Development and Finance newsletter, featuring a round-up of business, development and regeneration news and analysis.
Click here to register and receive the Development and Finance newsletter straight to your inbox.
And subscribe to Inside Housing by clicking here.
Already have an account? Click here to manage your newsletters.
Sign up for Housing 2026
Join us at Housing 2026 and hear from the sector’s most influential voices. Leading housing organisations curate their stages, showcasing the speakers and discussions that matter most.
Take part in purposeful, tech-enabled networking – see who’s attending, handpick the people you want to meet, and engage in meaningful, in-person conversations.
Connect with every key decision-maker under one roof, from local authorities and housing associations to investors, developers and operators.
Related stories
