Demand for specialist supported housing helps drive Civitas growth

Civitas Social Housing added an extra 34 properties to its portfolio during the three-month period to 31 March.

The business carried out ‘a significant amount of investment’ increasing the ‘size, diversification and quality’ of its portfolio, it said in a market update.

As reported in March, Civitas bought 19 homes for £73.5m and exchanged contracts on two further premises for £12.1m.

International Financial Reporting Standards net asset value per share was up 0.6% to 107.1p (31 Dec 106.5p), while annualised rent roll stood at £45.7m at the end of the period.

Civitas said the growth in rental income had been unaffected by the regulatory judgements issued by the Regulator of Social Housing, as highlighted last week.

The update said demand for affordable housing of all types was growing ‘at a much faster pace than supply’ against a backdrop of house price volatility and uncertainty driven by Brexit and other macro factors.

‘As we work at a local authority level it is clear that there is increasing demand for specialist supported housing as a cost effective and ethical way to deliver care in the community as opposed to more expensive hospital-based provision,’ it said.

‘We expect this to continue into the future and we are working at a strategic level with many leading care providers and other property owners in order to develop transactions that meet specific needs and requirements.’