Paradigm reports increased surplus

Paradigm Housing Group’s year end results report a significantly increased surplus of £33.8m.

The financial results for 2016/17, published today, show an increase from £21.9m for 2015/16. Operating margin, excluding sales, increased from 43.5% to 49% and the margin on social housing lettings was 50.1%.

This improvement is the result of a systematic and focused approach, across all business areas, including a sustained effort to lower repair costs through better procurement and by delivering more through the in-house property services team. Other key factors include improving rent collection and letting vacant homes more quickly.

Paradigm built 403 new homes during the year, including 293 for affordable rent or shared ownership. The surplus gives Paradigm the capacity to increase this to 600 new homes a year.

“I am delighted to report this higher surplus which will allow us to deliver on our core purpose of building new homes for people who can’t afford to buy or rent on the open market, as well as continuing to provide a fair deal to existing residents,” says Chair of the Board David Easson.

“We will use our surpluses to underpin our development programme which is targeting 600 new homes a year. I am pleased we have increased our surplus, while maintaining standards, with resident and staff safety remaining a priority.

“We developed a compliance scorecard to provide oversight of performance as well as investing £5.9m in planned works on our properties, with a further £5.7m being spent on capital works to existing properties.

“I appreciate the work put in by Paradigm staff in helping to realise these results.”

Paradigm, which owns and manages almost 15,000 homes across London and the South East, donated £350,000 during the last year to the Paradigm Foundation which funds projects to support residents and communities in areas where Paradigm works.