Preview: HA profits from sales pass the £1bn mark

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Profits from sales formed 37 per cent of English housing associations’ surpluses in 2014/15.

Social Housing’s analysis of the accounts of the 150 largest housing associations found that they made over £1bn of just under £2.8bn in total surpluses from sales.

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Despite profits from sales rising by 21 per cent in 2014/15, they continued to make up a very similar share of the overall surplus at 36.7 per cent compared to 34.4 per cent a year earlier. This is because the net surplus also rose, largely thanks to increases in income from social housing rents.

Sales profits are made up of: first tranche shared ownership sales; sales of housing fixed assets, which sometimes includes right to buy (RTB) or right to acquire sales as well as some open market sales; and non-social housing sales which were properties built for open market sale where this figure was stated.

In some cases the non-social housing figure also included profits from development or development consultancy for other organisations and some other commercial work.

There was a dramatic rise in profits on first tranche shared ownership sales of 55 per cent to £216.5m.

Non-social housing sales surpluses increased 36 per cent to £249m and gains on fixed asset sales by 7 per cent to £561.6m.

A 13 per cent rise in the net surplus to £2.8bn meant that first tranche sales formed 8 per cent of the net surplus, non-social housing development sales (largely open market sale) represented 9 per cent and fixed asset sales accounted for a fifth of the total net surplus…

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