Southern posted just 拢3m in sales income in first half of the year
Contractor failures are being blamed for a housing association鈥檚 fall in sales income.
Southern Housing, which merged with Optivo last year, reported open market sales income of just 拢3m in the first half of the financial year in an update today.
This suggests the figure for 2023/24 is likely to be a lot lower than the 拢67m generated for the last financial year as a whole.
The 78,000-home association its results have been impacted by 鈥渟ome building contractors struggling to deliver schemes on time and to budget, and others going into administration, all resulting in reduced rental and net sales income鈥�.
It said it will monitor second half performance closely but may need to 鈥渞ecognise some additional impairments on development programmes in 2023/24鈥�.
The association completed 213 homes in the six months to 30 September, compared to more than 1,000 completions in the whole of 2022/23. It started work on 216 homes in the half-year.
Southern announced in September plans to cut its new build programme to just 250 homes a year for four years 鈥渋n the face of economic challenges鈥� and to focus instead on improving existing homes.
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