Platform boosts year-on-year new home completions by over a third

“Operating surpluses and margins are both down on the prior year due to investment in existing homes and services, and cost challenges in revenue maintenance,” the trading update said. 

Platform said its costs have been affected by accelerating some works to bring homes back into management, as well as clearing a backlog of jobs. 

The Midlands-based landlord has also seen high damp and mould costs in 2025, but noted that “there are signs that case numbers are moderating”.

On development, the trading statement said Platform is on track to reach around 1,600 new starts on site for the second consecutive year, and will start 2026-27 with close to 70% of the pipeline identified.

Of the 1,000 new homes completed in the first nine months of the year, 319 were for affordable rent, 211 were for social rent, 432 were for shared ownership and 38 were Rent to Buy. 

Investment in new homes rose year-on-year by over 18%, from £230.5m to £273m.

Platform’s turnover from shared ownership first tranche sales fell by just under a third to £29m, from £41.6m in the same period last year. 

The trading statement said this was “primarily due to the timing of the development cycle”, but also pointed to delays in delivering infrastructure such as highways, power and water.

It said: “We have also seen some challenges with local authority resources, impacting the sign-off of our pre-occupation planning conditions.

“These delays have affected the speed with which schemes are completed and had a moderating effect on sales turnover as a consequence.”

Platform’s EBITDA MRI interest cover for the end of the nine-month period was 126%, down from 132% in December 2024. 

“The year-on-year movement is driven by a planned increase in investment into existing homes, combined with increases in interest expense due to financing activities, as we push ahead with quality and sustainability improvements,” the update said.

The housing association has also seen its lowest ever rate of rent arrears, at 2.3%, down from 2.9% at the same point last year.

Kevin Bolt, Platform’s interim chief executive officer, who took up the role this month, said he had “inherited a well-run and financially robust organisation”.

“Our solid financial outturn has been underpinned by the predicted revenue growth in our core lettings business, record-low arrears and a reduction in vacant homes, which in turn supported interest cover and gearing ratios,” he said.

Mr Bolt said there have been “cost inflationary and activity pressures” on the organisation as a result of Awaab’s Law being introduced last year.

He continued: “Sales exposure from our development programme is limited to first tranche sales of shared ownership homes for which demand remains high in our areas of operation.

“This has helped to improve margins in comparison to last year, albeit turnover has been lower with delays in some schemes, due to infrastructure planning sign-off, such as highways and utilities connectivity, by statutory authorities.”