Build-to-rent developer, Get Living has reported a £153.2 million loss in its latest financial year, driven by £411 million set aside for fire safety remediation at the East Village site, formerly the London 2012 Olympic athletes’ village in Stratford, East London.
In its results for the year ending 31 December 2024, the operator, developer and investor, which manages around 4,000 homes across three neighbourhoods in London and Manchester, saw its revenue decrease by 32.8 per cent from £246 million to £165.2 million.
Its gross profit for the year was down by 19 per cent to £89.2 million (FY2023: £110.2 million), with an operating loss of £107.9 million and an overall loss of £153.2 million.
The loss was heavily impacted by £411.1 million in provisions for fire safety remediation costs into its first foray into the market at East Village, the former London 2012 athletes’ village.
It followed a larger £386.2 million deficit in the previous year.
Rick de Blaby, CEO of Get Living, stated the provision was necessary to address building safety defects identified during government-led contractor remediation work, however, they would attempt to recoup the costs from the contractors who delivered the work.
“As we pursue those contractors, we expect that provision to reduce significantly in future years,” he said, adding the work would likely be carried out over the next five years.
Launched in 2013 with the aim to shake-up the private rental sector and offer a better way of renting, East Village was retrofitted to provide more than 2,800 homes, including 1,379 affordable homes, but has faced ongoing challenges.
This includes a dispute over remediation contribution orders (RCOs) with property management company, Triathlon Homes, which as a partnership between developer First Base and housing associations Southern and L&Q manages 1,400 affordable homes in the East Village.
The case involved more than £16 million of cladding remediation work, however, an appeal by Get Living on payment of the work has since been rejected.
Further action was also brought against them by the East Village Management Limited regarding site-wide RCOs, with the developer setting aside the provision to settle the obligation.
Despite these setbacks, the year saw Get Living improve its total rental income to £113.5 million (FY2023: £106.9 million).
Looking ahead, de Blaby added: “The outlook for the rental housing market will remain characterised by supply shortages and continued demand but also precise sensitivity.
“Our portfolio of assets, a compelling resident proposition and platform maturity position us well to meet the current short-term challenges and ultimately resume growth over the medium to long-term.”
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