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South East social landlord records rise in surplus as turnover from social housing lettings falls
South East-based landlord Moat Homes has seen a small increase to its surplus but recorded a lower proportion of turnover from social housing lettings.
In a stock market update the housing association said its unaudited operating surplus before gains and disposal of fixed assets was £38.2m in 2019/20, up 1.3% from £37.7m in 2018/19.
The 20,000-home landlord reported an 8.7% increase in turnover from £130.4m to £141.7m, but the proportion from social housing lettings fell from 76.3% in 2018/19 to 72.8% in 2019/20.
Moat said: “Of this [turnover], £103.2m (previous year – £99.6m) is comprised of social housing lettings income, with the majority of the balance being, as in the previous year, first tranche sales income from shared ownership homes.”
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It added that it continues to have a very low element of revenue not from social lettings or shared ownership activities, less than £1m in 2019/20.
Gains on disposals of fixed assets fell by 31% from £17.1m to £11.8m in 2019/20. Moat noted that the previous year included gains on assets disposals of £2.9m, which completed its stock rationalisation programme.
“The balance primarily reflects reduced staircasing activity and redemptions of equity loans on customers’ homes,” the association said.
Moat received a regulatory downgrade in November 2018 for selling 26 homes for older people to a for-profit provider of social housing.
It was returned to the top grading for governance six months later.
The housing association completed 553 new homes in the year, up from 500 in 2018/19, of which 166 were for social or affordable rent, 361 were for shared ownership and 26 were for market tenures.
“Going forward the development programme has shifted towards more homes for rent and fewer for shared ownership, with ongoing very low numbers of homes built for market rent or outright sale,” Moat added.
According to its most recent annual accounts Moat has a pipeline of more than 2,000 new homes, 95% of which are affordable homes to rent or buy.
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