East London for-profit reports surge in profit after completing first development

MHA said its business is going through a transition from short-term leasing contracts secured from private landlords and property agents, to developing and operating new affordable homes across London and the South East of England. 

It is also investing in its board, executive team, governance policy and procedures.

The landlord was incorporated in 2010 and began as a temporary accommodation provider, before working to facilitate grant for other registered providers. It is owned by brothers Aman and Sandeep Singh, and funded by family equity as well as bank funding and government grant.

MHA currently owns 116 completed homes, up from seven homes in 2024, and has 665 new homes under development, with a gross development value of £301m.

The 58-home Seven Kings scheme has a gross development value of £20.4m. The homes are let at London Affordable Rent and were fully occupied in January.

In September, MHA secured its fifth development project, comprising 146 social rent homes at Rom Valley in Havering, and worth £62.4m. Construction is expected to begin in the second quarter of 2026.

The homes are part of a larger site, acquired by a fellow group company, with outline planning permission for 972 homes. MHA has said the remaining homes will be offered to the company in future phases of around 300 homes at a time, once planning has been achieved.

The for-profit is also in discussions with Be First, Barking and Dagenham Council’s regeneration company, which owns sites on Thames Road, with the potential for around a further 600 homes.

MHA will continue to look to buy distressed built stock and Section 106 homes from other developers to grow its housing stock. Its long-term goal is to establish a portfolio of 10,000 homes.

The landlord has completed two acquisition projects, including buying and refurbishing eight homes under the Refugee Housing Programme and buying a completed block comprising 43 homes at Sydenham Road in Croydon with grant funding from the Greater London Authority.

Neil Euesden, director at MHA, said: “During this transition, expenditure has exceeded income as the old short-term leasing contracts wind down and the building of the platform for the new affordable operating and development strategy is implemented.

“We have now worked our way through this transition and the results of the new strategy are starting to bear fruit, with a profit of £589,021 for the year.

“As the homes developed and acquired in the year become operational, revenue and operating profits are expected increase contributing to profitable future growth.”

This month, losses at for-profit provider Pinnacle Affordable Homes widened 25% year on year as interest bills mounted. It reported a post-tax loss of £2.6m for 2024-25, compared with a £2.1m loss the year before.

For-profit shared ownership specialist ReSI Homes announced last month that it had narrowed its losses after its portfolio surpassed 1,000 homes. It made a post-tax loss of £11.4m in 2024-25, compared with £15.7m the year before.