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Peabody’s starts drop by nearly 75% as it invests more in existing stock
Peabody’s new housing starts have dropped by nearly 75% in the past 12 months, as it moves to spend more on existing stock than new developments.
Peabody new-home starts plummet by nearly three-quarters amid “challenging” financial climate #UKhousingPeabody now spends more on existing stock than development, according to its 2024-25 results #UKhousingPeabody chief executive says Spending Review will help it “build capacity to invest”, after sharp drop in housing starts #UKhousingThe housing association began work on 302 home between March 2024 and March 2025, according to unaudited results. This is a decline of 74% from the 1,157 starts recorded in the previous 12 months.
Peabody also upped its spending on residents’ homes by 16%, going from £371m in 2023-24 to £430m for the last year.
Over the same period, its investment in its new-homes development programme fell from £495m to £333m.
Ian McDermott, chief executive of Peabody, pointed to the group’s “top priority” of looking after residents’ homes.
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He said that, despite starting fewer new homes this year, the group wanted to build housing in London, and Spending Review changes will add to its ability to invest.
Peabody also completed fewer homes in 2024-25, with 1,010 delivered, compared with 1,381 the year before.
The 108,000-home housing association was ranked 11th in Inside Housing’s biggest builders’ survey, down from seventh place in 2024 and second in 2023. Our survey revealed a trend of declining completions and starts over the past 12 months.
Peabody’s latest results also showed a rise in turnover to £1.03bn.
Its average social rent was £147 per week and its collection rate was 99%.
Peabody expects a slight dip in its operating surplus for the year, going from £244m to £220m.
On new homes, the report stated that Peabody is seeking “new and innovative ways” to support housing developments and is currently building 6,145 homes.
It said the group has continued to “carefully manage” its development programme, “maintaining an appropriate level of commitment when faced with a challenging financial environment”.
Mr McDermott said: “This has been another year of improvement and higher investment to support our top priority of looking after residents’ homes. We’re seeing positive change, but we know there is much more to do.
“We’re focused on delivering better services for residents, being better together for colleagues, and providing better homes and places for the long term.
“Over the next three years, residents will see our services become more reliable – with fewer issues, quicker fixes and clearer communication. We’ll equip our teams with better tools and training, simplify how we work and embed a local approach throughout the organisation.
“While we started fewer new homes this year, we’re acutely aware of the overcrowding and homelessness challenges in London. We want to do what we can to support the delivery of new homes and regeneration in and around the capital.
“We welcome the measures announced in the Spending Review, which show strong backing and support for the sector from [the] government.
“Pledges around long-term rents, remediation support and new funding are a positive and welcome change which will help build our capacity to invest.”
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