Selling underperforming assets
The 1% rent reduction announced by the government in 2015 has meant that, even though we continue to be a financially strong business, we’ve had to re-evaluate our business models, review our service standards and improve business effectiveness.
Over the last 12 months, we’ve looked at the performance of our housing portfolio and have identified a small number of poor performing properties across our operating areas that we could sell on the open market if they become empty.
By selling a handful of underperforming properties we are able to build at least two new homes, with our new homes built on average just 5.5 miles away from a property we choose to sell. Instead of housing one family, we can house more families in newer and more energy efficient homes.
We have a healthy development programme and will be investing £1.5bn over the next seven years to deliver 10,000 new homes.
Releasing some of our underperforming assets to build modern, efficient homes for our customers supports our commitment as developer and landlord with a social purpose. It helps us to operate more effectively and ultimately provides more people with the opportunity to live in a good quality home they can afford.