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Paradigm’s surplus boosted by strong shared ownership sales, but completions fall
Paradigm has posted a bump in annual profit after strong sales of shared ownership homes, but the association built fewer new homes than last year.
Paradigm’s surplus boosted by strong shared ownership sales, but completions fall #UKhousingParadigm has posted a bump in annual profit after strong sales of shared ownership homes, but the association built fewer new homes than last year #UKhousingThe South East of England housing association, which recently confirmed its merger with Settle to become a 30,000-home landlord, has published its annual results for the period up to 31 March 2025.
The accounts revealed an annual surplus of £22.9m, a small increase on the £20.6m it recorded the previous year.
During the year, the sale of 148 first-tranche shared ownership homes and other properties generated £33.8m – down from £34.6m in 2024.
The volume of shared ownership sales was below its target of 178 and last year’s figure of 198. However, customers purchased higher shares than forecast and the homes were sold for more than expected.
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Over the 12-month period, the number of new homes completed fell to 411, compared with 522 completions last year.
Of these, 27 were sold on the open market through Paradigm’s joint venture with developer Countryside.
The remaining 384 new social housing properties, including 150 shared ownership homes, 222 affordable rented homes and 12 social rented homes, were added to its portfolio.
This is slightly under Paradigm’s annual target of 400 homes or 1,950 homes by 2026, which was revised down in 2024 to take account of the “challenging economic environment”.
Yet, with 422 new homes planned next year, the landlord said it is still on track to deliver this. “We are expecting to exceed our target of delivering 1,950 homes over the life of our current corporate plan,” said Richard Moriarty, chair of Paradigm.
The association’s turnover rose to £160m, up from £150m last year and overall operating margin was also up to 37% from 35% last year, just below its target of 38%.
Gearing ratio was 57%, up from 56% last year and over its target of 55%, reflecting the increase in net debt as it drew down on its revolving credit facility to fund the development programme.
The landlord also delivered 976 in-house retrofit and Energy Performance Certificate surveys, with 86% of its rented homes now reaching Band C or above, up from 71% last year.
Mr Moriarty added: “The year has also not been without its challenges – including rising cost pressures, increased demand for affordable homes and the ongoing need to invest in building safety and sustainability – and there will undoubtedly be many more ahead.
“However, Paradigm has strong financial health with an operating margin of 37% for the year, an improvement from 35% the previous year and a robust balance sheet. As a result, we have the necessary foundations in place to take forward our ambitious plans.”
The merger between Paradigm and Settle is due to complete in October, with the new organisation to be called SettleParadigm. The amalgamation will expand both landlords’ presence in and around Buckinghamshire, Hertfordshire and Bedfordshire.
A shadow board and executive team has already been appointed to lead the merger organisation, with Mr Moriarty named as designate chair.
Paradigm announced in March that it was in discussions to buy 3,500 homes in South Buckinghamshire from L&Q. These negotiations are at an advanced stage.
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