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Repair cases rise by nearly a quarter at East of England landlord as high costs hit operating margin
The number of repairs carried out at BPHA has risen by almost a quarter in April to September 2025 compared to this period last year, with the high cost of renovations blamed for a slight drop in the landlord’s core operating margin.
Repair cases rise by nearly a quarter at East of England landlord as high costs hit operating margin #UKhousingIn its unaudited half-year accounts for 2025-26, the 20,000-home East of England based landlord posted a rise in turnover at its core operating business from £68.2m to £71.2m, which it attributed to a 2.7% rent increase and new homes development drive.
But its operating margin fell from 43% at this point last year to 39%, which the housing association admitted was short of its 40% target.
The landlord highlighted how a continued increase in repair costs was the “main driver” for the change, adding: “We saw a 23% increase in repair volumes versus the same period last year, with an average cost increase of 7%, a factor impacting the sector.”
It comes after other landlords reported a huge spike in the cost and volume of repairs over the past year, including Onward, Karbon and Platform.
Earlier this year, Inside Housing reported on the record amounts landlords are spending on repairs and maintenance, while investment is one of the key ways that landlords have prepared for strict new deadlines for completing repairs brought in by Awaab’s Law last month.
Accounts show that BPHA has increased the cash it spends on upgrading and maintaining its existing homes slightly, from £19m to £22m as of September this year.
Its current projects include a revamp of 14 high-rise blocks dating back to the 1950s and 60s, with the second of the building refurbishments completed this year, as part of a £70m programme to upgrade residents’ homes and reduce energy bills.
Julian Pearce, chief financial officer at BPHA, added: “While the economic environment continues to be challenging, our strategy ensures we will continue to invest in the upkeep of our customers’ homes and respond to opportunities to provide more much-needed homes.”
The rise in spending on existing stock was dwarfed by the landlord’s increased investment in new developments, which rose by around 50%, from £26m as of September 2024 to nearly £40m this year.
One scheme that will be explored over the next year is for 400 homes in Bedford town centre as part of a wider town regeneration, which would also involve the borough council and Homes England.
Alongside this, however, the housing association saw its first-tranche shared ownership sales fall by half compared to the previous period, from 54 to 27.
It also completed fewer homes in the past half-year, with 69 units built, down from the 119 completions recorded at this time last year, however the landlord expects this figure will rise over the full year.
Richard Hill, chief executive of BPHA, said: “I am pleased the report demonstrates we have continued a robust financial performance, making healthy progress against our strategic commitments.
“We will continue to work closely with our customers and prioritise their feedback for the remainder of this year and beyond.”
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