Karbon Homes Company Profile

Background

Karbon Homes is a housing association established in April 2017 through the merger of Cestria Community Housing, Derwentside Homes, and Isos Housing. Headquartered in Newcastle upon Tyne, the organization owns and manages approximately 34,000 homes across Northern England and Yorkshire, serving over 80,000 residents. Karbon Homes is dedicated to providing affordable, high-quality housing and comprehensive support services to diverse communities, aiming to create strong foundations for individuals to thrive.

Key Strategic Focus

Karbon Homes' strategic objectives encompass:

Provision of Quality Homes: Developing and maintaining affordable housing to meet the needs of various communities.

Excellent Customer Service: Delivering responsive and effective services to enhance resident satisfaction.

Community Development: Fostering sustainable and vibrant communities through targeted support and engagement initiatives.

The organization operates primarily in the North East of England and Yorkshire, focusing on social housing with minimal exposure to market sales risks. This approach ensures a stable business model centered on core social housing services.

Financials and Funding

As of the fiscal year ending March 31, 2024, Karbon Homes reported:

Turnover: £191.4 million, an increase from £165.6 million in the previous year.

Operating Surplus: £43.7 million, slightly up from £43.6 million in the prior year.

Surplus on Disposals: £2.4 million, down from £3.3 million the previous year.

Net Interest Cost: £18.4 million, up from £17.8 million in the prior year.

Surplus: £32.4 million, a decrease from £83.5 million in the previous year, which included significant negative goodwill.

In September 2024, Karbon Homes secured £71 million in funding to support its ongoing development projects and community initiatives.

Pipeline Development

Karbon Homes is committed to expanding its housing portfolio through strategic partnerships and development projects. As a Homes England Strategic Partner, the organization has secured £165 million in grant funding to deliver 2,200 new social and affordable homes by 2026. Recent collaborations include partnerships with South Tyneside Council and local housebuilders to develop affordable housing schemes.

Technological Platform and Innovation

Karbon Homes leverages modern technology to enhance operational efficiency and service delivery. The organization utilizes Microsoft Azure Cloud Services for application hosting and computing, Microsoft 365 for collaboration, and MHR iTrent HR for core human resources functions. These platforms support streamlined operations and improved customer engagement.

Leadership Team

The leadership team at Karbon Homes includes:

Sir David Bell: Chairman, appointed in 2020.

Paul Fiddaman: Group Chief Executive, leading the organization's strategic direction.

Sarah Robson: Executive Director of Development and Asset Management, appointed in January 2024.

Richard Fryer: Executive Director of Governance and Integration, announced retirement effective April 2025 after 13 years with the organization.

Competitor Profile

Market Insights and Dynamics:

The UK social housing sector is characterized by a significant demand for affordable housing, driven by population growth and economic factors. Housing associations play a crucial role in addressing this demand by developing and managing properties for low-income and vulnerable populations.

Competitor Analysis:

Key competitors in the social housing sector include:

Great Places Housing Group: Manages a substantial portfolio across the North of England, focusing on community development and affordable housing.

Home Group: One of the UK's largest housing associations, providing a range of housing and support services nationwide.

Bernicia Group: Operates primarily in the North East, offering housing solutions and community support services.

Thirteen Group: Serves the North East and Yorkshire regions, focusing on affordable housing and community regeneration.

These organizations, like Karbon Homes, are dedicated to providing quality housing and support services, contributing to the overall development of sustainable communities.

Strategic Collaborations and Partnerships

Karbon Homes actively engages in partnerships to enhance its service offerings and expand its housing portfolio. Notable collaborations include:

South Tyneside Council: Joint development of affordable housing projects on former school sites.

Homes by Carlton: Partnership on market sale sites in County Durham, sharing commercial risks and leveraging the housebuilder's expertise.

Adderstone Group: Collaboration to deliver a mix of affordable properties in East Cowton, near Hambleton.

Operational Insights

Karbon Homes maintains a low-risk business model with a focus on core social housing and minimal exposure to market sales risks. The organization's turnover from social housing lettings represents 87% of total group turnover, ensuring financial stability. With a G1/V1 rating from the Regulator of Social Housing and an 'A' credit rating from S&P Global, Karbon Homes demonstrates strong governance and financial health.

Strategic Opportunities and Future Directions

Looking ahead, Karbon Homes aims to:

Expand Housing Stock: Utilize grant funding and partnerships to develop additional social and affordable homes.

Enhance Community Services: Strengthen support services to meet the evolving needs of residents.

Embrace Technological Advancements: Implement innovative solutions to improve operational efficiency and customer engagement.

By leveraging its strong financial position and strategic partnerships, Karbon Homes is well-positioned to address the growing demand for affordable housing and contribute to the development of sustainable communities.