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L&Q’s income falls as sales volumes reduce

Giant London housing association L&Q has seen its income drop in the most recent quarter as sales volumes fell.

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L&Q sees income fall as sales volumes reduce #ukhousing

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.


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"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.

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