Peabody’s private home sales boost profits by £50 million

THE capital’s oldest housing association, Peabody, delivered an extra £50 million in profits last year as sales of private homes funded more affordable housing for Londoners.

The 155-year-old association — which sinks all of its profits back into the business — produced an operating surplus of £126 million in the year to March, up from £74 million the previous year.

Peabody, which sold around 1000 homes, benefited from the capital’s rising prices and invested £145 million in the new housing over the period.

The association has an 8000-strong development pipeline but its ambitious plans involve a £1.5 billion overhaul of rundown Thamesmead in south-east London. It owns 80% of the land and hopes to redevelop the poorly planned Sixties area with the potential for 20,000 homes.

Chief executive Stephen Howlett said: “Our financial performance puts us in a great position to continue George Peabody’s legacy and further our charitable objectives — helping to tackle London’s housing crisis.”