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Torus records £40m rise in surplus as shared ownership sales income up by nearly a third
North West landlord Torus has recorded a £40m rise in its post-tax surplus for the year amid an income rise of nearly a third from shared ownership sales.
Torus records £40m rise in surplus as shared ownership sales income up by nearly a third #UKhousingNorth West landlord Torus has recorded a £40m rise in its post-tax surplus for the year amid an income rise of nearly a third from shared ownership sales #UKhousingThe 40,000-home association recorded a surplus before tax of £61m in the 2024-2025 financial year, nearly triple that of the previous year.
It also reported a 13% rise in turnover, from £245m to £277m, and boosted its overall operating margin from 10% to 22% after demand for responsive repairs subsided during the year.
Torus said the boost in turnover was partly due to a higher income from shared ownership sales, which rose from £22.7m to £29.8m, following an increase in completed developments and the homes it has to sell.
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The housing association’s board explained that the market for this tenure type has stayed “resilient” despite the impact of the wider financial climate on the market overall.
It added that because of this “market volatility”, the landlord has been buying homes from volume house builders and selling these as shared ownership properties rather than for outright sale.
Overall, Torus’ sales increased compared with last year, going from 272 homes to 358, and it currently manages 1,900 shared ownership homes.
A rent rise of 7.7% in April 2024 also accounted for the increase in turnover, with income from social housing activities up to £231m from £208m last year.
The landlord also completed its highest ever number of homes, with just over 1,000 finished within the year. It aims to better this next year and has a target of 1,200 completions.
The board admitted that the figure did not meet the goal it had set for the year, citing factors including contractor failure and supply chain challenges.
Torus also saw a fall in its number of development starts, from 1,033 homes last year to 851 in 2024-25 – although this was above its target of 800 for the year.
The board said the past year has been “challenging” for many reasons, including the continuing cost of living crisis, workforce shortages, materials costs, higher expectations around housing safety and quality, and the economic climate.
However, it said Torus has delivered a “strong financial performance for the year” and managed its cost base well alongside boosting turnover.
Looking ahead to the future, the board added: “The social housing sector continues to face a number of challenges, namely the economic climate and associated inflationary and interest rate pressures, increased scrutiny on quality of homes and building safety requirements along with the need to ensure tenants are the focus for the business in line with the social housing white paper.
“There is therefore a need to balance the need to invest in homes and services with a requirement to maintain long term financial viability. Despite these challenges, the future prospects for Torus remain positive.
“A skilled and experienced board is in place with a five-year group corporate plan established in 2023-24, which is now in its second year and sets out the mission, goals and aspirations for the business.”
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