Platform’s completions up by a third while investment in existing homes continues to impact margins

The 51,000-home landlord said its shared ownership turnover dropped by 17% to £40.4m, which was primarily due to the timing of the development cycle.

But it highlighted continued resource pressure in statutory authorities, which is causing delays to infrastructure sign-off for some schemes.

There were 481 sales of share ownership homes recorded in 2025-26, and Platform said demand remains high across its areas of operation.

The landlord’s operating surplus was down by 14% to £85.2m, while its operating margin was down by 4.2 percentage points to 22.1%.

“Operating surpluses and margins are down on the prior year due to investment in existing homes and services, cost challenges in revenue maintenance and some one-off expenses,” the update said.

Platform said damp and condensation mould costs were high last year, but “there are signs that case numbers are beginning to moderate”.

The landlord’s social housing lettings margin, at 26.1%, is below its “golden rule” of 30%, and it does not expect to achieve this target for the next 24 months.

Platform said it plans to return to that level in the coming years, though “heightened investment will impact margins” heading into 2026-27.

Net debt at the end of the financial year was £1.6bn, up from £1.5bn at March 2025, and liquidity was £630m, which is “sufficient to meet all forecast needs until into 2027”, the trading update said.

Platform’s EBITDA-MRI interest cover was 105% at the end of the year, down from 143% in 2025.

The update said: “The year-on-year movement is driven by a planned increase in investment [in] existing homes, cost pressures on revenue maintenance... and increased interest expense due to financing activities.”

Platform also achieved its lowest-ever rent arrears in 2025-26, at 2%.

Kevin Bolt, the landlord’s interim chief executive, said the operating environment last year “remained challenging”, while the conflict in the Middle East will affect its costs and budgets going forward.

He said: “The full extent of the economic fallout is as yet undetermined. However, the bond finance and new revolving credit facilities arranged in the second half of the year mean we have high levels of liquidity and help ensure we can carry forward our operational and capital programmes as planned.”

Mr Bolt said Platform’s “solid financial outturn has been underpinned by the predicted revenue growth” in its core lettings business, record-low arrears and improved margins for shared ownership sales.

He continued: “Platform has always focused on delivering safe and secure homes for our customers, and with the introduction of Awaab’s Law across the country there has been increased maintenance activity as a result, as well as cost inflationary pressures.  

“In addition, we have accelerated our asset investment programme to meet the challenges of current and future health, safety and environmental requirements.”

Rosemary Farrar, Platform’s chief financial officer, said: “The past year has presented a particularly tough operating environment for housing associations with changes to the regulatory requirements, economic instability and increasing cost pressures for us and for our customers.

“The business has focused on keeping down our costs, improving our services and investing in the quality of our existing and new homes.

“We continue to keep an eye on our financial health in order to maximise our future capacity for growth, and although we have consciously stepped up investment in our existing assets, which has reduced our social housing letting margin and will continue to do so next over the next 24 months, we are targeting a return to our current golden rule of 30%.”