Clarion Housing Group announces strong financial and operational performance

After its first full financial year since merger, Clarion Housing Group today announces a strong set of financial results and operational performance for 2017/18.

The Group boosted its operating surplus by 5%, up to £305 million (2016/17: £290 million) and delivered an operating margin of 37% (2016/17: 36%) on a higher turnover of £829 million (2016/17: £796 million). Efficiencies generated post-merger have led to lower total operating costs of £479 million (2016/17: £495 million) whilst increasing overall customer satisfaction to 80%. 

In line with expectations, pre-tax net surplus was lower, at £157 million (2016/17: £173 million) mainly due to a gain on revaluation of investment properties  and  disposal of the Group's German market rent portfolio which boosted the 2016/17 surplus by £17 million and £8 million respectively.

During 2017/18, the Group invested £426 million in new homes (2016/17: £292 million) and increased its pipeline to over 14,000 homes, two thirds of which will be affordable.  The Group invested £439 million, 2.8 times its surplus (2016/17: £318 million, 1.8 times) in new and existing social housing assets.

Other operational highlights in the year included:

  • Highest regulatory gradings for governance and viability (G1/V1) given by the Regulator of Social Housing, following an in-depth assessment earlier in the year;
  • Completed simplification of the Group structure, consolidating 10 distinct housing associations into one, Clarion Housing;
  • Completed 1,263 new homes, of which 1,038 were affordable;
  • Delivered £119 million worth of improvements to existing residents homes, including fitting over 2,262 new bathrooms, 2,610 new kitchens and over 2,880 new central heating systems;
  • Achieved planning permission for £1 billion investment to transform three existing estates in Merton; and
  • Launched Clarion Futures, the Group’s charitable foundation, which delivered an equivalent of £96 million in social value from its interventions.

Ruth Cooke, Group Chief Executive at Clarion Housing Group, said: “These are a very strong set of results from our first full financial year as Clarion Housing Group, which provides us with a robust platform to realise the long-term potential of our organisation.  We have already made headway on our ambitious plans of building 50,000 homes over 10 years, have made good progress in realising post-merger efficiencies and at the same time improved the quality of our services.

She continued, “Despite the continued uncertain political and economic environment, our financial strength means we remain well-placed to play a key role in the housing crisis and to fulfil our core social purpose. We reinvest our entire surplus into building new homes, improving existing homes and improving social mobility in our communities.  We are committed to place-making and are bringing forward a number of large-scale schemes such as our transformative regeneration plans for estates in Merton and Plymouth, as well the work already underway to build up to 2,600 homes at Ebbsfleet Garden City.”

You can download the full 2017/18 Annual Report and Accounts, as well as the 2018 Value for Money Statement to find out more.


2017/18 (£m)

2016/17 (£m)




Operating costs



Operating surplus



Operating margin



Net long-term investment in affordable housing properties



Net surplus