Karbon Homes prioritises repairs investment as annual housing completions fall by 48%
North East housing association Karbon Homes has reported a 48% fall in annual housing completions after increasing investment in repairs and maintenance to meet growing demand across its existing homes.
The Newcastle-based social housing provider completed 478 new homes during the 2025/26 financial year, compared with 707 homes delivered the previous year, according to its latest financial statements.
Karbon Homes said the reduction in development activity reflects its decision to significantly increase investment in its non-urgent repairs service as demand from residents continues to rise.
The housing association also narrowly missed its target of delivering new homes equivalent to 2.1% of its social housing stock, completing 67 fewer homes than planned. It attributed the shortfall primarily to planning delays and issues involving third-party contractors.
Despite the slowdown in new housing delivery, Karbon substantially increased spending on maintaining its existing homes. Investment in routine and planned maintenance reached £61.4 million, representing a 12% year-on-year increase as the organisation strengthened its commitment to improving homes and services for tenants.
Financial performance also remained strong. Annual turnover increased by £14.7 million to £322.7 million, driven largely by a £12.1 million rise in net rental income from social housing lettings.
Operating expenditure on social housing lettings rose by more than £12 million, including an additional £5.8 millioninvested in routine maintenance, reflecting the growing cost of maintaining and improving existing housing stock.
Karbon Homes reported an overall surplus of £31.1 million, down from £35.8 million the previous year. The decrease was primarily due to a £2 million loss in the valuation of investment properties, compared with a £695,000 gain in 2024/25. Excluding these one-off valuation movements, the organisation’s operating surplus increased from £57.7 million to £60.6 million.
Paul Fiddman, Chief Executive of Karbon Homes, said:
“Over the last year we have made great progress against our strategic aims and I’m proud of the positive impact we are continuing to have across our communities.”
The latest results highlight the balancing act facing housing associations across England, with providers increasingly directing investment towards repairing and maintaining existing homes while continuing to deliver much-needed affordable housing in challenging economic and planning conditions.
