Clarion faces building safety provisions totalling £35m

Clarion said: “Where possible the group will… seek recovery of its building safety provision from developers or through the government’s Cladding Safety Scheme.”

Earlier this month, the government confirmed plans to allow social landlords equal access to £1bn of cladding remediation funds after sustained calls from the sector for help.

Clarion said it had also recognised a provision of £2.7m for the cost of completing remediation works at open market sale schemes.

The figures were revealed as the landlord published its audited full-year results for the year to the end of March 2025. The group reported a six per cent dip in annual surplus to £82.1m.

A rise in turnover to £1.09bn failed to offset higher costs.

The results included £19m of impairments and provisions “linked to schemes with historical contractor failure or current major defects/remediation requirements”, the group said.

It is unclear at this stage if the £19m is included in the overall figure of £35.4m.

The group reported an overall operating margin, excluding disposals, of 17.3 per cent.

Its EBITDA MRI interest cover figure improved to 101.8 per cent, compared to 92.2 per cent the year before.

Rent arrears stood at 5.92 per cent as of the end of March, down from 7.41 per cent at the same point last year. 

As reported in its unaudited results in April, Clarion completed 1,727 homes – a 12 per cent rise on the prior year. Of the handovers, 83 per cent were classified as affordable tenures. 

The group has around 20,000 homes in its pipeline. 

However Clarion’s development arm, Latimer, recorded its third consecutive year of losses as it deals with tough market conditions.

Clarion spent £417m on maintaining and improving existing properties, just below the previous year’s figure of £418m. 

Mark Hattersley, chief financial officer at Clarion, said that while operating in a “constrained economic environment”, Clarion has been able to deliver improved services, build more homes, invest in existing stock and “maintain a strong and resilient financial profile”.

The group currently has G1/V2 grades with the English regulator, but has yet to be assessed for consumer standards.

Update: on 29.07.25

The article was amended to correct the number of homes delivered to 1,727, after a typo in the previous article which stated these as 727. The article was also amended to state that the £16.6m for works to external wall systems accounts for more than one building.