Surplus up at Clarion but turnover and sales income take hit amid ‘challenging market conditions’

Its sales income dropped 46% to £95m, while its market and shared ownership sales achieved a net margin of 2.4%, which is over four percentage points lower than in 2024-25.

“The reduction in sales income is mainly due to decisions taken to manage delivery at a time of challenging market conditions, while the sales margin was impacted by market pressures, particularly on private sale, driven by current economic and geopolitical uncertainty,” the trading update said.

Clarion boosted its investment in new housing supply by 37% compared to the previous year, up to £591m.

The 125,000-home landlord also increased investment in improving existing homes, up 17% to £161m.

Its quarterly update said liquidity “remains strong” at £0.95bn, and that the 26% reduction on the previous year is in part due to Clarion’s decision to repay an expiring loan facility early. 

The unaudited financial results also included provisions and impairments of £33m, which covered additional costs to complete where contractors had failed in previous years, reductions to net realisable value to reflect challenging market conditions, and building remediation costs.

Clarion’s pipeline has increased to 22,285 homes, up from 20,173 at the same point in the last financial year, which it said reflects “continued progress in securing new development opportunities”.