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Midland Heart’s surplus soars after retirement housing sell-off
Midland Heart has posted a 60% rise in profit in its latest results, following a large one-off transfer of retirement housing to a specialist provider.
Midland Heart’s surplus soars after retirement housing sell-off #UKhousingMidland Heart has posted a 60% rise in profit in its latest results, following a large one-off transfer of retirement housing to a specialist provider #UKhousingThe Birmingham-based landlord reported a surplus of £67m for the 12 months to March 2025, up by more than £25m on the previous year.
This increase was mainly driven by the sale of 1,567 homes in 23 supported housing schemes to neighbouring association Housing 21, as well as the lease or sale of the vast majority of its supported living portfolio.
Midland Heart, which celebrated its 100th anniversary this year, also reported a rise in turnover by £11m to £243m.
It saw a reduction in the number of properties over the year due to the sale of its supported housing schemes.
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This was offset by a record number of new builds, the regulatory formula rent increase and shared ownership sales, which generated record sale receipts of £19.2m.
Midland Heart also completed more than 800 properties in the year to 31 March 2025, leading the landlord to meet its target of 4,000 homes built or acquired between 2019-2025.
In the year, the housing association invested almost £35m in improving its existing stock. This included more than 2,000 new kitchens and bathrooms, and the replacement of approximately 670 windows and 260 roofs.
It also said it had “significantly improved” the Energy Performance Certificate ratings of its properties during 2024-25, with 79% now at Band C or above.
The landlord, which has some of the oldest housing stock in the country, also confirmed previously announced plans to spend £300m on improving its homes over the next five years.
In tenant satisfaction, the landlord posted an overall score of 78.7% for overall satisfaction (76.6% in 2023-24) and 80.3% for repairs satisfaction (78.6% in 2023-24) with low-cost rented accommodation.
Joe Reeves, deputy chief executive of Midland Heart, said: “Despite ongoing economic and social challenges, we’ve worked hard to make sure we remain financially robust and that our resources are balanced in meeting the needs of our existing and future tenants.
“Thanks to our financial resilience and strong relationships with lenders and investors, we are well positioned to build on our achievements to date and continue driving greater outcomes for our tenants.”
In a recent inspection by the Regulator of Social Housing, Midland Heart was graded G1 for governance, V1 for financial viability and C1 under the consumer standards. The landlord also retained its A1 credit rating with Moody’s.
Glenn Harris, chief executive of Midland Heart, said: “As each year passes, we continue to meet our targets and raise the bar, and the last 12 months were no exception.
“As we enter the first year of our new corporate plan, we do so from a position of financial and operational strength, ready to deliver a record £300m investment in the quality and energy efficiency of our homes, making a real difference for our tenants.”
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