Platform Housing Group Market Research Report

Background

Platform Housing Group, established in 1967, is a prominent housing association in the Midlands, UK. Managing nearly 50,000 homes, the organization serves over 120,000 residents across regions from Herefordshire to the Lincolnshire coast and from the Derbyshire Dales to the Cotswolds.

The group's mission is to provide quality, affordable, and sustainable housing solutions, addressing the housing shortage and enhancing community well-being. Their portfolio includes social and affordable rent properties, shared ownership homes, supported housing, and retirement living villages.

Key Strategic Focus

Platform Housing Group's strategic objectives encompass:

Expansion of Affordable Housing: Collaborating with over 100 local authorities to develop homes that meet local needs, including those for sale, rent, shared ownership, and specialized housing for older individuals.

Sustainability Initiatives: Committed to building energy-efficient homes and improving existing properties to meet high environmental standards.

Community Support Services: Offering employment advice, educational opportunities, and financial support schemes to empower residents.

Financials and Funding

As of the fiscal year ending March 2024, Platform Housing Group reported:

Turnover: £337 million.

Social Housing Lettings Margin: 32%.

Credit Ratings: A+ (stable outlook) by Standard & Poor’s and A+ (negative outlook) by Fitch.

In April 2024, the group issued a £250 million sustainability bond with a 26-year maturity, priced at government gilts plus 0.83%, yielding 5.342%. The bond was nearly four times oversubscribed, with over 50 investors participating. Proceeds are allocated to developing energy-efficient and affordable housing.

Pipeline Development

In the 12 months leading up to March 31, 2024, Platform Housing Group:

Commenced Construction: 1,534 homes, marking a record annual figure.

Completed: 1,202 homes, a 25% increase from the previous year.

The group aims to complete 7,500 homes between 2023 and 2028, focusing on energy-efficient designs with Energy Performance Certificate (EPC) ratings of Band B or above.

Technological Platform and Innovation

Platform Housing Group emphasizes technological advancements to enhance operations and customer service:

Finance Transformation: Partnered with EY to implement Microsoft Dynamics 365 Finance, consolidating technology systems to improve data quality and financial insights. This cloud-based solution enhances security and accessibility for employees and suppliers.

Leadership Team

Elizabeth Froude: Chief Executive Officer. Under her leadership, the group has focused on expanding affordable housing and investing in existing properties to improve energy standards.

Rosemary Farrar: Chief Finance Officer. She has been instrumental in securing funding, including the £250 million sustainability bond, to support the group's development and decarbonization strategies.

Competitor Profile

Market Insights and Dynamics

The UK social housing sector is characterized by a pressing need for affordable housing, with housing associations playing a pivotal role in addressing this demand. The Midlands region, where Platform Housing Group operates, has a significant requirement for quality, affordable homes.

Competitor Analysis

Key competitors include:

One Housing Group: Manages approximately 16,000 homes in London and the South East, offering social and affordable rent properties and support services.

G15 Housing Associations: A consortium of London's largest housing associations, collectively managing around 600,000 homes.

Strategic Collaborations and Partnerships

Platform Housing Group has established significant partnerships to bolster its market position and innovation capacity:

Homes England Strategic Partnership: Trusted with over £250 million of government funding to build more homes and alleviate the housing shortage.

Legal Counsel: Appointed Devonshires for banking, finance, property, and development work, supporting the establishment of the £1 billion Euro Medium Term Note (EMTN) programme.

Operational Insights

Platform Housing Group's strategic considerations include:

Market Position: As the largest housing association in the Midlands and one of the largest nationally, the group leverages its scale to address regional housing needs effectively.

Competitive Advantages: Strong financial health, strategic partnerships, and a commitment to sustainability and community support distinguish the group in the housing sector.