Unaudited results for the year ended 31 March 2026

Peabody Trust.

09 June 2026

 

Full Year Unaudited Results 

Peabody Group (incorporating Peabody Trust and subsidiaries) 

Peabody Group is sharing the following unaudited information ahead of publishing its Annual Report and Accounts for the year ended 31 March 2026 in the autumn. 

Our turnover for the year was £1,091m, up from £1,031m in the year before. Net rental income from social housing homes increased to £835m from £806m. We collected 99.6% of rent due during the year, and the average Peabody social rent was £153 per week.

The Group is reporting an overall net surplus of £107m, £57m higher than last year. Group EBITDA MRI surplus was £91m, £15m higher than the previous year. We delivered a margin on our social housing activities of 22% in the year, up from 19%, and our operating margin after impairments and provisions, excluding sales, was 14%. 

	Year to 31 March 2026	Year to 31 March 2025
Turnover (£m)	1,091	1,031
EBITDA (£m)	302	307
EBITDA MRI (£m)	91	76
EBITDA MRI %	40%	34%
Overall Net Surplus (£m)	107	50
Drawn debt (£m)	5,289	5,023
Homes completed	1,911	1,010

Revenues from market and first tranche shared ownership sales were £129m compared with £104m in 2025. This delivered a margin of £21m or 18.6% compared with £15m or 11.5% the year before. At the end of this month, £19m of sales at one development are expected to complete, having already been exchanged or reserved.

We made a surplus from disposals and staircasing of £127m compared with £68m in 2025. This was helped by our regular process of reviewing properties when they become empty and a targeted shared ownership marketing campaign. Joint ventures contributed a further £20m in surplus during the year but were impacted by slower than expected handovers.

Overall, while performance improved year on year, we continued to feel the impact of cost pressures in maintenance, investment in residents' homes, and other property-related costs. Our RSH EBITDA MRI Interest Cover was 40% compared to 34% the year before. The core operating business generated a surplus of £338m but we also saw the impact of £31m of exceptional items including £37m on development scheme write-downs partially offset by the release of longstanding credit balances.

Over the next 12 months we'll focus more on improving our financial performance and delivering better value for money so that we can keep investing in residents' homes, services and communities.

Underpinning performance for the year, Peabody's balance sheet remains strong with fixed assets of over £12bn and a low level of gearing at 43%.

Looking after residents' homes 

We spent £445m looking after residents' homes which included £211m of capital expenditure. This included substantial decarbonisation improvements, targeted work on damp and mould to address the root cause of issues, and significant works on Electrical Installation Condition Reports.

We also spent £234m on planned maintenance and responsive repairs. This included increasing the size of our local repairs teams on estates, with more than 200,000 repairs completed. We created a centralised knowledge hub for repairs processes and introduced new damp and mould procedures to support compliance with Awaab's Law. Resident satisfaction with the repairs service during the year was at 64%, with 72% of repairs completed within target. We know there is more to do and improving the repairs experience remains a key priority.

Performance, priorities and positive impact   

This was the first year of our new strategy and we made important progress in laying the foundations to deliver better services for residents. We co-developed and published our new Service Standards with residents and colleagues, which created a shared set of expectations for service quality and performance. We also improved how we manage complaints. However, tenant satisfaction remains lower than we want it to be at 54%, and we're focused on making further improvements.

We're also improving services for homeowners, including reviewing service charges, management fees, and billing processes, alongside developing a new strategy to improve homeowner satisfaction.

We continued to support residents and local communities through practical help, advice and opportunities, delivering on our social purpose at a time when many households continue to face financial pressure.

Through Peabody Community Foundation (PCF), we reached more than 30,000 people during the year, delivering 60,000 hours of free activities and support, and creating £10m in social value. PCF also awarded more than £250,000 in grants to local projects, helped more than 1,300 people find work, and supported a network of 98 community centres.

Our Financial Inclusion team supported more than 2,100 households, helping residents improve their financial situation by an average of almost £2,000 per household and increasing household income by £4.2m in total. Our Advice and Wellbeing service provided tailored guidance to more than 1,100 residents, while the Resident Support Fund approved over 2,100 applications and distributed almost £347,000 in food and energy vouchers and other essential household items.

New homes, development and sales 

We continue to respond to the housing crisis in London and the South-East, supporting the Government's ambitions to build new social homes where we can. We're using our own balance sheet but also continue to seek new and innovative ways to support the development of new homes and communities.

This includes a recent funding agreement with the Greater London Authority, which will unlock the construction of more than 500 much-needed affordable homes in London.

We invested £415m in our new homes programme over the last 12 months and completed 1,911 new homes. These included: 

Social Rent - 420 

Affordable Rent - 62 

London Affordable Rent - 390 

Shared Ownership - 627 

Open Market Sale - 412

We started on site with 288 new homes and have more than 5,000 homes in development, including joint ventures at various stages of construction.

Wherever possible, we reduce risk by selling open market homes before they are finished. The level of completed homes for sale which have remained unsold for over three months is shown below. 

	Reserved/Exchanged	Available	Total
Over 6 months	72	148	220
Between 3-6 months	13	134	147

Around 80% of the properties that were unsold at the year-end were shared ownership properties, which cannot be pre-sold.

Estimated sales income for unsold homes over six months old is around £65m, of which £37m is reserved or exchanged.

Liquidity 

We remain compliant with all banking covenants, with our performance for the year maintaining substantial headroom of more than £100m above required levels of interest cover. 

We continue to retain strong access to liquidity with £1.1bn of cash and undrawn facilities available. Our gearing continues to be relatively low compared with peers at 43% and 73% of our borrowing is on a fixed-rate basis. We have almost 40,000 properties not currently used as loan security.  

Ratings and certification 

We are rated G1, V2, C2 by the Regulator of Social Housing following a Routine Planned Inspection, the results of which were published on 29 April 2026. The inspection confirmed that we have compliant gradings, with unchanged Governance and Viability grades.

Our first consumer standards grading of C2 is consistent with our current three-year group strategy which focuses on improving our responsive repairs service and overall resident experience.

We are rated A3 (stable outlook) by Moody's and BBB+ (stable outlook) by S&P and A (negative outlook) by Fitch.  

Ian McDermott, Peabody Chief Executive, said: "Over the last year we have focused on our three strategic priorities: better services for residents, better together for colleagues, and better homes and places for the long term. Financial resilience underpins all of this, helping us to invest where it matters most - in residents' homes, local communities and the delivery of new affordable homes.

"The demands on us are higher than ever, with stronger regulation and new safety requirements placing continued pressure on resources. At the same time, residents have been clear about where we need to improve, and colleagues have shared valuable insight into how we can do things better.

"These results show that we are continuing to focus our resources on improving homes and services, while also strengthening our financial performance and delivering on our social purpose. We know that better homes, better services and financial resilience need to go hand in hand.

"We remain acutely aware of the overcrowding and homelessness challenges in London, and how important it has been to complete over 1,900 homes in the last year. We'll continue to support the delivery of new homes and regeneration in and around London, and to seek new, innovative ways to help make that happen."

Contact: Anthony Marriott, Director of Treasury & Corporate Finance or Ben Blades, Assistant Director Corporate Affairs. 

 

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