SNG’s pre-tax surplus up one-fifth after boost in shared ownership sales and non-social housing activity

Mark Washer, group chief executive of SNG, said: “Our financial results reflect the strength and stability that SNG has achieved since our merger.

“This has enabled us to deliver confidently on our social purpose – investing more in existing homes and building the new affordable homes that are the foundation for a better life.

“Last year, the number of children living in temporary accommodation across England rose again, to 165,000 – a stark reminder of why the work of housing associations like SNG has never been more critical.

“In an increasingly challenging environment, I’m proud that we continue to buck the trend as one of the sector’s most ambitious housing associations.”

Turnover at the Basingstoke-based landlord rose from £707.8m to £794.2m, and its operating surplus grew from £171.5m to £205.2m in the year.

At the same time, SNG’s operating costs rose by 12.5%, which the housing association said was mainly driven by a rise in maintenance and repairs, and increased insurance and depreciation costs from its investment in new homes.

Its operating margin was 20%, a drop of 1.1% on the previous year. SNG also upped its investment in building new homes this year, from £488m to £642m, though the number of new homes it delivered fell from 2,015 to 1,590, of which 90% were affordable.

Earlier this year, the group launched a £1.5bn Euro Medium-Term Note programme and secured £250m in funding from lender Natwest to develop affordable homes in London and the South of England.

In his foreword to the report, Mr Washer highlighted the group’s aim of building 25,000 homes in the next decade and gave his views on what will be needed to solve the UK’s housing crisis.

He said: “The impact of the housing crisis is increasingly felt across the public consciousness. Planning reform is an important step, but it is only part of what is needed to deliver the homes the country needs. 

“The recently announced funding in the Comprehensive Spending Review could mark a turning point for social housing and create the conditions for real progress.

“The confirmation of a £39bn Affordable Homes Programme for 2026-2036 and a rent settlement of [Consumer Price Index] + 1% for 10 years alongside convergence will help us continue to deliver our ambition to build 25,000 homes over 10 years.

“While this funding is welcome, it won’t solve the housing crisis on its own. There remains a strong argument for a fundamental reshaping of the way we deliver social housing to be sustainable and resilient over the coming decades.

“It is important that this engages every part of the wider housing sector, and that this starts now – because getting it right will take time. A [government-convened taskforce] would be a sensible way forward.”