London & Quadrant Housing Trust ('L&Q'), one of the UK's largest registered providers of affordable housing, has published its unaudited consolidated trading update for the six months ended 30 September 2026. The trust reported turnover of £469m, down from £511m in the equivalent prior-year period, alongside a significant reduction in net debt from £5,101m to £4,195m. Investors and bondholders will be watching closely as key profitability metrics declined year-on-year while the balance sheet showed material improvement following a programme of strategic asset management.

Key Points

  • London & Quadrant Housing Trust (RNS: 44EB) — UK registered social housing provider operating primarily in Greater London and Greater Manchester
  • Unaudited Q2 2026 turnover of £469m, with operating surplus of £130m, both down year-on-year
  • Net debt reduced to £4,195m at 30 September 2026 from £5,101m at 31 March 2026; available liquidity stood at £1,671m
  • Investors may be watching L&Q's EBITDA-MRI interest cover of 117%, down from 182% in Q2 2025, alongside progress under the Government's £39bn Social and Affordable Homes Programme

L&Q Turnover Falls to £469m as EBITDA-MRI Margin Drops to 23% in Six Months to September 2026

L&Q's headline turnover for the six months ended 30 September 2026 was £469m, compared with £511m in the equivalent period of 2025, an 8% decline. EBITDA fell to £170m from £238m, while EBITDA-MRI — which deducts capitalised major repairs — dropped sharply to £105m from £199m. The EBITDA-MRI margin narrowed to 23% from 40%, reflecting increased investment in existing homes. Capitalised major repairs rose to £65m from £39m, and maintenance costs increased to £144m from £130m. Operating surplus stood at £130m against £199m in the prior-year period, a 35% reduction, as the trust prioritised investment in residents' homes and building safety programmes.

Net Debt Falls by Nearly £1bn as L&Q Completes Strategic Asset Management Programme

The announcement states that net debt excluding derivative financial liabilities stood at £4,195m at 30 September 2026, down from £5,101m at 31 March 2026. Available liquidity improved to £1,671m from £1,360m over the same period, comprising committed undrawn revolving credit facilities and non-restricted cash. Debt to assets fell to 36% from 41% year-on-year. Approximately 49% of loan facilities and 68% of drawn facilities are at a fixed cost. L&Q holds credit ratings of BBB+/Stable from S&P, A3/Stable from Moody's, and A-/Stable from Fitch. The trust has £495m of debt maturities falling within the next 12 months.

Housing Completions Decline to 648 Homes as Unsold Stock Rises to 881 Units

L&Q completed 648 residential homes in the financial year to date, down from 1,052 in Q2 2025. Social housing tenures accounted for 444 completions (69%) and market tenures for 204 (31%). The trust operated from 61 active sites, reduced from 85 a year earlier. Unsold completed stock increased to 881 homes from 694, with projected revenue of £160m. The average selling price for outright market sales was £508k, rising from £361k in Q2 2025. The sales environment was described in the announcement as "challenging," with sales accounting for just 11% of turnover compared with 22% in the prior-year equivalent period.

Building Safety Progress and Government's £39bn Programme Shape L&Q's Long-Term Outlook

The announcement highlights that George House in Kilburn became the fourth L&Q high-rise building to receive a Building Assessment Certificate from the Building Safety Regulator during the quarter. L&Q also completed Resident Engagement Plans for all higher-risk buildings ahead of schedule. The trust's work at Lewisham Park Towers was recognised as Community Engagement Project of the Year at the 2026 Construction News Awards. Looking ahead, the announcement references the Government's new £39bn Social and Affordable Homes Programme as a long-term investment framework, with L&Q's total approved development pipeline standing at 6,181 homes and strategic land plots at 20,556.