Our financials
We’ve been working hard to make sure our finances are strong and sustainable. Since the merger with PfP we’ve repaid our bank loans, removing conditions that were limiting our financial capacity, and cleared our pension deficit. These steps reduced our costs, improved our credit rating, and freed up resources to invest back into homes and services that make a real difference to our Customers’ lives.
In 2024/25, our total income from lettings and sales was £87.6m, an increase from £72.2m in 2023/24. This growth was due to 277 new homes completed in the year, 107 more than the previous year. Income from sales of shared ownership homes was £4.0m, down from £5.8m in 2023/24, representing 5% of our total turnover. This aligns with our current development strategy which is more focused on social and affordable rent. We invested £34m in developing new homes and £16.1m in maintaining and improving our existing homes, including £3.4m specifically for fire safety.
Our operating surplus reached £31.7m, up by £11.3m from last year. After interest payments and refinancing costs, the net deficit was £5.3m. This was due to refinancing costs, which were incurred as a result of a strategic decision to help reduce future interest costs. We have continued to face rising costs due to the impact of inflation, interest rates, necessary spending on fire safety and addressing damp and mould, skills shortages as well as the costs arising from societal pressures such as anti-social behaviour, street homelessness and crime in the context of reduced public services.
*Overheads are things like our office costs, utilities and salaries of our staff
Case study: Strengthening our finances
One of our biggest milestones this year was securing lender consent for the merger and repaying our bank loans. A PfP finance lead told us: “The merger has unlocked investment that directly benefits our homes and services.” By reducing risk and freeing up resources, we can now invest more in what matters most — our Customers and their homes.
Read the full article: https://www.originhousing.org.uk/media-hub/strengthening-our-finances/