Large Midlands landlord hits 4,000-home delivery target despite difficult environment

Other major landlords have faced widespread challenges with development, with many dialling down their ambitions.

Elsewhere, Midland Heart’s annual report showed that its finances were boosted by the sale of 1,567 supported living homes, across 23 schemes, to neighbour Housing 21 last October.

It also leased or sold the majority of its supported living portfolio.

“We have spent the last few years simplifying our portfolio to better focus on our core purpose as a landlord of general needs homes,” Mr Harris wrote in the annual report. 

The move helped the group record a 61 per cent jump in surplus to £67.2m in the year to the end of March 2025.

The 35,000-home landlord’s bottom line was also bolstered by turnover increasing to £243m, up from nearly £232m the previous year. This was driven by rent increases and new homes.

The rise in revenue offset an increase in operating costs to £178.4m due to inflation, extra regulatory requirements and nearly £35m spent on improving homes, the group said.

Midland Heart also recommitted to a previously announced pledge to spend £300m on improving its homes over the next five years.

The group reported an overall operating margin of 26.6 per cent, down slightly on the previous year’s figure of 27 per cent.

An EBITDA MRI interest cover figure of 193 per cent was recorded, which the group said was “despite increased investment” and compliance costs.

However it has forecast a sharp drop in this figure in the current financial year to 109 per cent.

Gearing was a relatively low 27.2 per cent, which the group said was due to a reduction in net debt following its sale of supported housing schemes.

“We will look to redeploy these proceeds in building more stock and through the purchase of existing stock from other providers.”

Midland Heart currently has the regulator’s top grades of G1/V1/C1, following an inspection in March.