by Kim Pidgeon | Jun 30, 2024 | News
The housing association releases full-year unaudited results
Peabody Group invested £374m into their existing stock during the year, and plan to spend around £2bn over five years.
The not-for-profit housing association, which has 107,000 homes across London and the Home Counties, has released their unaudited results ahead of its Annual Report.
The £374m spend on existing homes includes investing £135m in improving the condition and environmental performance of residents’ homes. Almost 80 percent of which are now EPC C rated following further upgrades. A further £64m on fire safety as remediation work progresses. £175m went on planned maintenance and responsive repairs.
This is the housing association’s second year of trading incorporating Catalyst Housing Limited and its subsidiaries as part of the Peabody Group. It’s the first year of trading following the transfer of engagements of Catalyst Housing Limited into Peabody Trust and Rosebery Housing Association Limited into Town & Country Housing.
Ian McDermott, Peabody chief executive said: “This has been a year of good progress, but we know there is much work to do. We’re transforming our services and investing in homes and sustainable places for the long-term.
“Our local focus and commitment to getting the basics right remains a strategic priority. Our plan is to spend around £2bn over five years – or around £1m a day – on improving and maintaining residents’ homes. This is the right thing to do and will bring material benefits. Over time it will help to reduce the volume of responsive repairs and complaints and improve residents’ satisfaction with our landlord services.
“We also want to support local government in tackling London’s homelessness emergency by providing new social homes where we can. New homes of all tenures are essential infrastructure for the country, and we’ll continue to work with public and private partners on regeneration and new supply. All this activity clearly puts pressure on financial metrics, but we remain determined to use our balance sheet and liquidity as well as exploring new, innovative ways to invest in the things that support our goal of helping people flourish.”
Peabody invested £553m in its new homes programme over the last 12 months, completing 1,381 new homes.
The tenure mix is:
- Social rent: 322
- London Affordable rent: 313
- Affordable rent: 91
- Intermediate Market Rent: 16
- Shared Ownership: 478
- Market Sale: 161
The housing association, which made 1,157 starts on site during the year, says it’s “carefully managing” their development programme, “maintaining appropriate flexibility on the level of future spend and commitments which has limited the extent of expected write downs to around £10m in the period.”
The report states Peabody’s access to liquidity remains very strong with almost £1.3bn of cash and undrawn facilities. In addition they have continued to improve liquidity post year end with an additional £150m in bank facility.
Peabody’s balance sheet remains strong, with fixed assets of over £11bn and gearing at around 40 percent. Their turnover for 2023-24 was £992m. Turnover from core operations increased to £855m, including £774m from social housing lettings.
Overall revenues reduced due to a planned lower level of sales in the year (£130m) plus £7m other development income. A further £30m of contracted sales were anticipated but these have carried over to Q1 2024-25 due to delays on-site. Sales margins in 2023-24 improved to 12 percent, up from 10 percent previously.
Despite the significant cost pressures experienced throughout the year, and a challenging operating environment, Peabody expect their overall operating margin to be at a level similar to last year (23 percent).
Their social housing operating margin will be lower than the prior year, with their low rents below target/regulated levels. The average Peabody rent is now £138 per week and their rent collection for the year was 99.4 percent, improving as the year progressed.
Financing costs, excluding break costs incurred, increased to £170m. This reflects the full year impact of increased interest rates but, as the report states, was within their budget for the year and has allowed Peabody to maintain a healthy level of headroom over their banking covenant, whilst continuing to invest substantially in residents’ homes, in line with their commitment to spend £2bn on existing homes over five years.
In conclusion, the report says the results demonstrate that whilst facing a challenging environment, Peabody is in a strong, financially resilient position to support significant further investment for the long term.
by Kim Pidgeon | Apr 27, 2024 | News
The project is part of a wider development in Deptford, London
Peabody is making its first venture into providing homes that achieve Passive House certification.
The G15 housing association has appointed property developers Higgins Partnerships to build affordable, low-energy homes in the capital.
The project will consist of 189 homes at Deptford Landings in south east London and will be made up of three eight-storey buildings, two of which will have large roof terraces, and a central landscaped courtyard.
The Passive House concept is widely accepted by the construction industry as the standard to aim for when reducing a building’s running costs and the amount of energy it uses.
The energy needed to heat and cool Passive House buildings can be 90 per cent lower than that of regular buildings, and more than 75 per cent lower than typical new ones.
Peabody’s homes at Deptford Landings will be one of the largest single-phase Passive House projects in the UK to date and will see residents benefiting from reduced energy costs and a significant improvement in comfort and air quality.
The fully affordable scheme, managed by Peabody, will include social rent and shared ownership homes.
The development, designed by architects Allford Hall Monaghan Morris (AHMM) with Max Fordham engineers, will be part of a community being developed by Lendlease with new homes, shops, a renovated pub and green spaces connected to the Waterline Way walking and cycling route.
Simon Barry, managing director of development at Peabody, said: “At a time when building new, affordable homes in the capital is increasingly challenging, our investment of more than £75m, including grant support, will provide nearly 200 homes for Londoners.
“As well as being fully affordable, they’re the first we’re building to Passive House standards. Every home will be low cost and low energy, helping to significantly reduce energy bills for residents while being better for the environment.
“Together with our new partners at Higgins, we’re looking forward to continuing this pioneering work alongside Lendlease and the council.”
Declan Higgins, CEO of Higgins, added: “Plot 6 forms part of the exciting regeneration plans for Deptford Landings which will eventually see the creation of a brand-new community with over 1,000 new homes, retail and workspaces to support local businesses along with new landscaping, a park and public realm to enhance the area.
“We are pleased to once again be working in partnership with Peabody to deliver these much-needed new homes for the local area and look forward to moving ahead with work on site.”
by Kim Pidgeon | Apr 15, 2024 | News
An update on who is starting new roles in the housing sector
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Clarion Housing Group has appointed Jock Lennox as its new chair.
The chartered accountant, who is also a non-executive director for house builder Barratt, will take over from David Avery, who has completed his nine-year tenure with Clarion’s board and is stepping down after five years as chair.
Mr Lennox will start working with the housing association from the start of May, but will not take over the role until Mr Avery steps down as chair at the end of July.
The incoming chair, who spent 30 years with accountancy firm Ernst & Young and has developed an active board career said of the appointment: “It is a privilege to join Clarion and its excellent team, who are dedicated to providing and maintaining homes for those who need them most.
“I look forward to supporting the executive and non-executive team, helping them continue the legacy of William Sutton, who bequeathed his fortune to provide homes for the working poor nearly 125 years ago. I want to thank David Avery for all his hard work in maintaining this legacy under his Chairmanship, and for his support in ensuring my smooth transition into the role.”
Clare Miller, Clarion’s chief executive, said: “We are delighted to welcome Jock to Clarion. He brings tremendous energy and enthusiasm to the role, as well as extensive relevant experience.
“Jock’s appointment comes at a time of transition and challenge to our sector as we navigate the UK’s desperate need for more social housing, an increasingly complex regulatory environment and significant financial pressures, as well as our need to retrofit our homes to reduce energy bills for our residents. I look forward to working with Jock to lead Clarion through this period.”
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Places for People make Judy Hardy their permanent Chief Risk Officer.
The appointment comes after Judy initially held the role on an interim basis. She joins Places for People’s executive leadership team and will attend its Audit & Risk Committee.
Judy joined Places for People in 2005 and was most recently the company’s Director of Regulation.
Speaking about Judy’s appointment, Greg Reed, Places for People Group CEO said: “I’m proud that one of our own, someone who has been with us for 18 years, is now our Chief Risk Officer. Judy’s vast experience, her knowledge of UK Housing Regulation and her relationships with our regulatory and governance stakeholders, as well as her brilliant awareness and judgment, made her the right person for this critical role.
“At Places for People, we talk about being a ‘force for good’. Judy is the embodiment of that phrase and I’m delighted therefore that she is now part of our executive team and is leading risk across our whole organisation.”
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Tpas appoints new board chair
Former president of the Chartered Institute of Housing, Alison Inman, has been appointed as the new independent chair of tenant engagement experts, Tpas.
Alison, who has served on the Tpas board as an independent member, is also a board member at Saffron Housing Trust, in addition to being co-founder of social housing campaign group, SHOUT.
“It is an honour to be stepping into the role of Chair at Tpas having been part of the organisation’s growth over recent years,” Alison said of the appointment.
“Like all of us here at Tpas, I am a firm believer that when the voice of the tenant is heard, social housing works better. This has been one of my values for many years and I’ll continue to be a vocal champion of tenant involvement as I take on this role.”
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Peabody has named Tariq Kazi as new their Group Treasurer.
A former financier who helped set up the government’s Affordable Housing Guarantee Scheme, Tariq joins from Southern Housing where he was Director of Financial Strategy.
Tariq will help look after Peabody’s borrowings and ensure the Group, which has more than 108,000 homes and 220,000 residents, has enough long-term financial resources to invest in its existing homes, build new homes and create communities.
He’ll also be responsible for credit ratings agencies and bank and bond market investor relations across the Group’s £6bn treasury portfolio.
“The current economic climate means it’s more important than ever that we keep a strong balance sheet to deliver benefits for residents now and in the future,” said Tariq.
“We need to carefully manage financial risk so we can continue to invest in our homes and communities and help people flourish.”
Tariq’s arrival at Peabody follows on from the announcement earlier this month that Phil Day will join as the Group’s new Chief Financial Officer starting in September.
by Kim Pidgeon | Oct 29, 2019 | News
G15 housing association Peabody and property group Lendlease have formed a 50:50 joint venture for the c.£8bn development at Thamesmead Waterfront in south-east London.
The two organisations will work together on the planning and delivery of the scheme, which will deliver a minimum of 11,500 homes. The project will contribute to the continuing economic regeneration of east London and the Thames Estuary and aims to revitalise the existing Thamesmead town centre along with creating many new homes.
Currently much of the site is undeveloped and underpopulated. It includes 2.5km of river frontage, as well as an abundance of green space and two lakes.
Key to the project is the plan for a new cross-river extension of the Docklands Light Railway to Thamesmead. Improving transport links in the area is said to be critical in unlocking the full ambition of the scheme and to enable the 250-acre development to achieve its full potential.
Peabody CEO Brendan Sarsfield said: “Thamesmead Waterfront represents a historic opportunity to transform an isolated and under-utilised riverside location in London.
“A new DLR crossing from east London would allow this long-term partnership to create a new waterfront district with thousands of new affordable homes and a new leisure, cultural and commercial offer for the town, for London, and for the wider Thames Estuary.
“This would unlock huge benefits for existing and new communities, boosting the economy and providing huge opportunities for London and the UK.”
Neil Martin, chief executive at Lendlease, Europe, added: “Improving transport links is a vital part of the long-term regeneration of the area, as it will bring those new homes within reach of the heart of London and help us deliver one of the most exciting new places to live in the capital.”
This is the single largest development in Peabody’s 150-year history. The Waterfront joint venture is part of Peabody’s long-term regeneration of Thamesmead, a town in south-east London which is the same size as central London. The area measures around 760 hectares, with Peabody owning around 65% of the land.
by Kim Pidgeon | May 13, 2019 | News
Town and Country Housing (TCHG) has joined the Peabody Group, becoming a subsidiary of the G15 housing provider.
The housing association currently provides more than 9,500 affordable homes in 15 local authority areas in Kent and Sussex.
The move to become part of the Peabody Group was originally announced in November 2018. It’s now been agreed following a period of consultations with residents and stakeholders and gaining the relevant consents.
Although it’s joining the Peabody family, Town and Country Housing will retain its name and operate as a subsidiary.
The link-up will enable the two organisations to combine their strength and build 800 new homes across the South East every year – 500 more than Kent-based TCHG would be able to deliver on its own.
It takes Peabody’s new homes target to 3,300 per year from 2021.
The move sees TCHG CEO Bob Heapy joining Peabody’s executive team, and the company’s chair, Francis Salway, joining the Peabody board.
A joint statement from Lord Kerslake, chair of Peabody, and Francis Salway said: “This combines the strength of two organisations to deliver more much-needed affordable homes in the South East.
“Becoming part of the Peabody family, while remaining as a separate subsidiary, will help strengthen Town and Country’s offer in the South East, ensuring Peabody remains focused on its heartland in London.”
The Peabody Group now owns and manages more than 66,000 homes across London and the South East.
Peabody through the years
In 2017 Peabody completed a merger with Family Mosaic. As a result, the housing association has homes spread across 29 London boroughs along with homes in Essex, Sussex, Hampshire and Kent.
Read more about Peabody’s growth and development here.
For more information about Town and Country Housing, click here.
