G15 giant warns of deficit after £110m one-off costs

Another G15 landlord, Metropolitan Thames Valley Housing, also warned in January that its bottom line would be hit due to £105m in building safety costs as the post-Grenfell crisis continues.

NHG had already reported a 79% drop in surplus to £18.3m in its half year, compared to £87m in the first six months of the previous year.

At the time, the group pointed to the “challenging” economic backdrop, a sharp fall in home sales and higher repairs, building and fire safety costs. 

Last August, NHG revealed it had agreed a £72m deal to refurbish the high-profile Paragon Estate in west London, after around 1,000 residents were evacuated in 2020 over fire safety concerns. 

It also emerged that NHG had paid out £6.9m in compensation to residents at two estates over disruption caused by remedial works. 

Like many of its peers, the landlord has also cut its development programme amid the tough conditions. It had reduced its building plans by around 2,400 homes over the next four years, according to ratings agency Fitch. 

In its latest filing, NHG added: “The group remains financially strong. We remain committed to improvement in homes for our residents.” 

The landlord, which currently has a G1/V2 rating with the regulator, said it will publish a “more detailed” trading update in June for its 2023-24 financial year. 

It comes as a new chief financial officer joins the landlord this month.

Mark Smith, who was with government-owned NHS Property Services, has taken over from Susan Hickey who was serving as interim following the departure of Yomi Okunola. Mr Smith’s appointment was originally announced last December. 

Meanwhile, it was announced last week that NHG has completed the sale of 51 supported housing units in Hertfordshire to Hightown Housing Association for an undisclosed sum.

Staff of Hightown were already providing support to residents at 23 of the properties, according to the Hemel Hempstead-based landlord.