Annual Report for the year ended March 2025

Peabody Group (incorporating Peabody Trust, Peabody Capital PLC, Peabody Capital No.2 PLC and TCHG Capital PLC).

Peabody has today published its Annual Report for the year ended 31 March 2025 alongside its Residents Review and Resident Engagement Impact Report. The annual reports have also been published for Peabody Capital PLC and Peabody Capital No.2 PLC.

Ian McDermott, Peabody Chief Executive, said: "Despite multiple challenges, including one of the most difficult financial climates for many years, we've continued to put residents at the heart of everything we do and focus on putting the right foundations in place to improve services.

"Our top priority this year has remained safety and looking after residents' homes - reflected in our spend of £431m on homes, including £200m on repairs and routine maintenance and a further £231m on improvements. We're continuing to invest in local communities, providing the support and services people need in their neighbourhood through our Peabody Community Foundation.

"Our rents are low at £147 a week on average - £59m below the government's target social rent and around a third of what someone would pay in the private rental sector. We're having to spread that income across an ever-increasing range of demands, including retrofitting homes to improve energy efficiency and wide-ranging regulatory changes. We are financially stable and resilient, but competing challenges alongside constrained income inevitably puts pressure on our capacity to invest.

"As a result, our financial performance remains under pressure and below the level that we want, but we expect to see a strengthening of this over the next three years. Meanwhile, we continue to focus on the things that matter most to residents and are working hard to manage financial and environmental risk, so we're well prepared for the future."

Peter Baffoe, Peabody resident, Chair of the Resident Experience Committee and Vice-Chair of the Peabody Board said "The past year has been about managing challenges and listening, learning, and making changes to improve homes and services for residents. I'm confident that the organisation is heading in the right direction, with the new local focus making a positive impact.

"Last year, Peabody teams hosted over 270 engagement and listening events and influencing sessions attended by more than 2,250 residents directly.

"Going forward, I know the Board and Executive are committed to making sure that residents' voices are heard and acted on and that they influence operational and policy decisions throughout Peabody."

Finances
Despite the challenging operating environment, we had an overall turnover of £1.03bn (2024: £989m) and an operating surplus of £220m (2024: £244m). This was used to cover essential costs and financial obligations, with the remainder reinvested directly into residents' homes and services.

Our rents remain significantly below the private rental market, with an annual rent subsidy of £1.1bn.

Investing to improve
Our focus has been on maintaining and improving residents' homes and putting the right foundations in place to deliver better services to residents. 

As well as spending £431m on residents' homes, we aligned routine maintenance and repairs with home and energy-efficiency improvements to ensure value for money. We also consulted with residents to help shape our new local repairs service and improve the way we communicate.

The number of residents' homes with an Energy Performance Certificate rating of EPC C or above rose to 81.7 percent (2024: 78 percent) and the average Standard Assessment Procedure (SAP) rating was 74.52 (2024: 73.71).

Overall satisfaction amongst residents who rent their home rose to 58.7 percent (2024: 57.7 percent), while satisfaction with repairs climbed to 64.1 percent (2024: 62.6 percent). 

Supporting residents
We invested £9m in local communities through our Peabody Community Foundation, supporting projects and activities attended by 30,000 people, and helping provide 65,000 hours of free sessions on everything from wellbeing workshops to English lessons. 

Our Financial Inclusion team received 4,500 referrals for support and helped residents' increase their income by a combined £3.5m.

New homes
We spent £336m building 1,010 new homes (2024: 1,381), of which 626 were for social or affordable rent.

Summer 2025
This summer we published our new Group Strategy which sets out our plan for the next three years and is focused on continued improvement across our c.140 neighbourhoods.

We also appointed a new resident Board member to help ensure the Board is connected to the real experience of residents and that their voice is heard at the highest levels. We now have three residents on the Board.

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