SNG’s Performance Update for the year 2025-26

SNG reports increased investment in new homes and maintains sector leading development programme

SNG (Sovereign Network Group) has published its 2025/26 annual report, highlighting continued investment in new and existing homes, a sector leading development programme, and the financial strength needed to deliver more affordable housing, invest in services and support thriving communities over generations.

During the year, SNG invested £702.9 million in the development of new homes, up from £642 million the previous year, and delivered 1,661 new homes across a range of tenures, including an 11.6% increase in affordable homes (1,598). SNG also started 2,482 additional homes and increased its development pipeline to more than 12,000 homes, reinforcing its position as one of the largest housing association developers in England.

SNG's annual turnover increased by 2.9% (£23.4 million) to £817.6 million, while social housing rental income rose to £636.4 million, reflecting growth in homes under management and continued demand for affordable housing.

The Group reported an operating surplus of £193 million (2024/25: £205.2 million). The reduction reflects the impact of one-off impairment and pension settlement costs, alongside higher depreciation and financing costs driven by continued investment in existing homes, building safety, retrofit activity and new housing development. SNG's underlying financial performance remains robust and aligned with its long-term strategy.

SNG's balance sheet continued to strengthen, with net assets increasing to £2.82 billion and fixed assets rising to £8.55 billion. The organisation also secured £900 million in new funding during the year and ended 2025/26 with £1.064 billion in cash and undrawn facilities, providing significant capacity to support future investment.

Alongside investment in new homes, SNG continued to invest heavily in existing properties. Since the merger of Sovereign and Network Homes, the organisation has invested more than £600 million in existing homes, while its Homes and Place Standard continues to drive improvements in quality, sustainability and long-term value for customers.

The Group also generated £119.4 million in social value during the year and secured £2.19 million in external funding to support communities and local organisations. SNG's employment and skills programmes helped 537 customers secure jobs, while targeted support services delivered millions of pounds in financial gains and debt support for customers facing cost-of-living pressures.

Mark Washer, Group Chief Executive of SNG, said:

"Demand for affordable housing continues to grow, yet far too many people remain without access to a decent home they can afford. That's why we remain firmly committed to delivering new homes at scale while continuing to invest in the homes and communities we already serve.

"Over the past year we have invested more than £700 million in new homes, delivered over 1,600 homes, and expanded our development pipeline to over 12,000 homes. These achievements reflect both the scale of our ambition and our determination to play a leading role in tackling the country's housing crisis.

Peter Benz, SNG's Chief Financial Officer, said:

"SNG's financial performance demonstrates the benefits of maintaining a strong balance sheet and a disciplined approach to investment. Despite a challenging economic and operating environment, we increased our asset base, strengthened liquidity and secured significant new funding, ensuring we remain well positioned to invest for the long term. Our focus is on preserving financial resilience while creating the capacity to improve existing homes, support communities and deliver sustainable growth." 

For more information, please contact: Anup Dholakia, Treasury Director, Sovereign Network Group 07920205992 

James McLarin, Executive Liaison to the CEO, Sovereign Network Group

07776616024

Disclaimer The information contained herein (the "Trading Update") has been prepared by Sovereign Housing Association Limited trading as Sovereign Network Group (the "Parent") and its subsidiaries (the "Group"), including Sovereign Advances Ltd, Sovereign Housing Capital PLC (the "Issuers") and is for information purposes only.

The Trading Update should not be construed as an offer or solicitation to buy or sell any securities issued by the Parent, the Issuers or any other member of the Group, or any interest in any such securities, and nothing herein should be construed as a recommendation or advice to invest in any such securities.

Statements in the Trading Update, including those regarding possible or assumed future or other performance of the Group as a whole or any member of it, industry growth or other trend projections may constitute forward-looking statements and as such involve risks and uncertainties that may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such forward-looking statements will prove to have been correct. They speak only as at the date of the Trading Update and neither the Parent nor any other member of the Group undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments, occurrence of unanticipated events or otherwise.

None of the Parent, any member of the Group or anyone else is under any obligation to update or keep current the information contained in the Trading Update. The information in the Trading Update is subject to verification, does not purport to be comprehensive, is provided as at the date of the Trading Update and is subject to change without notice.

No reliance should be placed on the information or any projections, targets, estimates or forecasts and nothing in the Trading Update is or should be relied on as a promise or representation as to the future. No statement in the Trading Update is intended to be an estimate or forecast. No representation or warranty, express or implied, is given by or on behalf of the Parent, any other member of the Group or any of their respective directors, officers, employees, advisers, agents or any other persons as to the accuracy or validity of the information or opinions contained in the Trading Update (and whether any information has been omitted from the Trading Update). The Trading Update does not constitute legal, tax, accounting or investment advice.

www.sng.org.uk/working-with-us/investors 

Note: Figures quoted in the update are based on unaudited management accounts which are subject to review and further adjustments, for example in the areas of pensions, investment property valuation and taxation.