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Giant London housing association L&Q has seen its income drop in the most recent quarter as sales volumes fell.
The organisation, which houses about 250,000 people, mainly in the South East of England, reported income of £229m in the three months to 30 June 2018, a trading update revealed today.
This was down 15% from the same period the prior year, while surplus dropped 51% to £50m.
Group finance director Waqar Ahmed told the City that L&Q was focusing less on higher value schemes as the sales market in London cools.
"The year-on-year reduction in turnover and operating surplus predominately reflects the delayed timing of development completions and lower year-on-year sales,” he said.
“In response to current market conditions, we have limited our exposure to new development approvals below a price point of £800 per square foot.”
The housing association boosted its social housing completions by almost two-thirds to 314 in the three months to 30 June this year.
“We have increased the proportion of affordable tenures on all our new approvals in London where there is no sign of slowing demand,” said Mr Ahmed.
“The core social housing rental business continues to perform strongly with operating margins at 48% despite incurring remediation and improvement costs relating to fire safety standards."
The large association, which aims to build 100,000 homes over the next 10 years, announced a boosted surplus in its results for the 2017/18 financial year last month.
Paul Hackett, chair of the G15 group of large housing associations, last week said the ability of those in the capital to finance affordable housing by selling or renting private housing was “at full stretch.
Click on the links below to read more reports about individual associations' financial statements:
A2 Dominion reports £92.5m surplus
Aster sees 12% jump in surplus despite margin drop
BPHA sees surplus jump after shared ownership sales boost
Clarion's surplus falls for second year running
Housing & Care 21 records increased surplus
Metropolitan sees surplus fall due to post-Grenfell costs
Midland Heart records £47.8m surplus
Network Homes surplus dips for the second consecutive year
Notting Hill and Genesis post reduced combined surplus
Optivo sees turnover fall in first results since merger
Orbit surplus boosted by jump in value of private rented units
Paradigm surplus drops after £5.6m loan breakage cost
Places for People boosts surplus to £130m
Southern sees dip in surplus due to pensions and safety costs
Sovereign boosts surplus thanks to open market sales
Stonewater increases surplus by 38%
Swan surplus slides after £3.2m cladding provision
Vivid posts increased surplus post-Merger