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Financial sustainability

Welcome | Our 2050 strategy | Becoming truly customer-driven | Our social impact | Providing safe, energy-efficient homes | Building homes | Value for money | Our staff 

We continue to be in a strong financial position, delivering a healthy surplus and core operating margin this year, while supporting customers, improving building safety, building homes and investing in our Digital Programme.

We’ll face significant challenges as costs continue to rise, but we’re committed to our 2025 objectives and 2050 strategy. This will reduce margins in 2022/23 but it’s right to leverage our financial strength to invest for the future.

Our strong position was confirmed by the Regulator of Social Housing’s Regulatory Judgement this year, which saw us retain our G1/V2 rating. The G1 rating demonstrates our robust governance and our V2 rating shows our solid financial position, combined with our commitment to investing in our homes and to deliver more affordable homes in the future. This has been acknowledged in both of our credit ratings: both S&P and Fitch have awarded us A+ ratings, with a Stable outlook.


  • Core operating surplus was £81.7m vs budget of £83.1m (2020/21: £85.4m)
  • Core operating margin of 29.5% vs budget of 30% (2020/21: 31.3%)
  • Available liquidity of £891m (2020/21: £908m)

View and download our financial statement for 2021/22 (PDF, 13MB).

  • Core operating surplus

    Our core operating business generated a surplus and margin of £81.7m and 29.5% against a budget of £83.1m and 30% (2020/21: £85.4m and 31.3%). This was against a backdrop of significant pressures on operating costs, which will continue to affect margins in the future.

  • Core operating income

    Our core operating income increased to £277.1m from last year (2020/21: £272.6m), driven by rent increases in line with regulation. This was slightly below our budget of £278.9m, due to lower than estimated recoverable costs.

  • Core operating expenditure

    Core operating expenditure was £195.4m, which was broadly in line with the budget of £195.7m. We spent £80.9m on repairs and maintenance of our properties before capitalisation. Management, responsive repairs and service charge costs also increased this year, as we continued to invest in our homes.

  • Development sales

    Surplus from development and joint ventures was £0.2m, against a budget of £15.1m, as the result of phasing of sales of homes built through joint ventures, expected to be realised in 2022/23.

  • Housing property disposals

    The surplus from housing property disposals was £35m, which was broadly in line with the budget of £33.7m. We also incurred disposal costs of £2.6m, when setting up new strategic partnerships.

  • Building safety

    We continue to invest significantly in building safety, spending £80m in the past five years. In 2021/22 we spent £16.2m; this was lower than our budget of £19.7m, with further works planned for 2022/23.