Sanctuary reports higher surplus margins, fall in new home completions
Sanctuary published its unaudited half-year results on Friday, revealing a growth in its underlying operating surplus and margin, though the 126,000-home association also reported a dip in housing completions and sales.
Sanctuary published its unaudited half-year results on Friday, revealing a growth in its underlying operating surplus and margin, though the 126,000-home association also reported a dip in housing completions and sales #UKhousingThe half-year results cover the first six months of the current financial year (2025-26), and show that from April to December the landlord had a group operating surplus of £112.8m, compared to £105m in the same period last year.
Its group underlying operating margin also improved from 17.7% to 19.0%.
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Chief financial officer Ed Lunt called the update “a strong set of results for the first half of this financial year, underlining our continued solid operating performance across all of our operations”.
“This was achieved against a more stable economic backdrop, but [with] increasing staff cost pressures,” he added.
EBITDA MRI interest cover also improved from 133.6% to 138.9%, a figure suggesting a stronger balance sheet.
However, Sanctuary said it completed 287 new homes in the first half of the year, down from 493 in the same period last year.
It is on site with 2,892 homes – compared to 3,493 homes in the first half of 2024-25.
Income from sales was also down, from £56.2m to £29.2m, though Sanctuary said that the previous year’s figures had been buoyed by the bulk sale of 66 outright sale units acquired from Swan Housing Association.
Mr Lunt said: “Robust revenue from improved occupancy coupled with efficiencies and lower utility costs have ensured divisional EBITDA, operating margin and interest cover are all improved compared to the equivalent period last year.
“We have maintained our focus on repairs performance and reinvestment across our homes. This ongoing investment reflects our continued focus on providing our customers with homes that are safe and of a high quality.
“We prioritise spending on current homes while also focusing on the delivery of much-needed new affordable homes. Our financial performance and position is robust which gives us the confidence to continue investing, growing and extending the group’s social purpose while ensuring the group’s long-term sustainability.”
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