Corporate report

Homes England Annual Report 2024 to 2025 — Accountability Report, accessible version

Updated 19 November 2025

Applies to England

3. Accountability Report

The Accountability Report sets out how the Agency meets the key accountability requirements to Parliament.

It is broken down into three areas:

• Corporate Governance Report, which provides an overview of our leadership, governance structures, and risk management approach.

• Remuneration and Staff Report, which details remuneration, staff expenses and policies.

• Parliamentary Accountability and Audit Report, which contains details of losses, special payments, fees and charges during the financial year, as well as the audit certificate.

3.1 Corporate Governance Report

The Corporate Governance Report is made up of 3 sections:

• The Board Members’ Report

• The Statement of Accounting Officer’s Responsibilities

• The Governance Statement

The section provides an overview of the Agency’s leadership and governance structures and how they support achievement of the Agency’s objectives.

It also details our approach to risk management, financial crime and whistleblowing, and sets out our internal audit opinion.

Good governance underpins our effective delivery of the government’s housing and regeneration priorities.

Delivering at pace requires reliable and prompt decision making. The work done in 2024/25 and in previous years ensures our governance supports this.

Board Members’ Report

Homes England is led by a Board. Members are appointed by the Secretary of State for Housing, Communities and Local Government, in accordance with the Housing and Regeneration Act 2008.

The Board is the principal decision-making body of Homes England and is supported by a number of Committees, and staff (the Executive). The Executive is led by the Executive Leadership Team (ELT). Details of the Board and the ELT are set out in this Board Members’ Report.

Meet the Board

The Board has statutory responsibility for exercising the functions of Homes England. It provides strategic leadership and promotes the long-term, sustainable success of Homes England. In addition to appointing 5 new non-executive Board members, the Secretary of State has appointed the Agency’s Interim Chief Executive and Accounting Officer (Eamonn Boylan) during the course of this financial year. The Deputy Prime Minister, in her capacity as Secretary of State for Housing, Communities and Local Government has appointed Pat Ritchie CBE to succeed Peter Freeman CBE as Chair of the Board of Homes England.

The Board and Executive work closely with the Ministry of Housing, Communities and Local Government (MHCLG) to deliver the government’s priorities.

Each Board member in office during the financial year is listed on the following pages. During the year, there were a number of membership changes. Peter Denton, the former Chief Executive Officer and Accounting Officer, decided to stand down while Lord Ian Austin, Stephen Bell, Mark Rennison and Duncan Sutherland all retired from the Board when their terms of appointment came to an end.

Pat Ritchie CBE
Board member, Deputy Chair (from August 2024 until April 2025) Interim Chair (from May 2025)

Pat Ritchie CBE is a highly regarded and influential figure in the world of urban governance and regeneration. She has held senior roles in national, regional and local government.

She was Chief Executive of Newcastle City Council for over 8 years, where she notably secured the multi-million-pound investment deal to bring Legal & General to Newcastle’s flagship ‘Helix’ development and led on negotiations to secure a devolution deal for the North of Tyne Mayoral Combined Authority. Pat led the city’s response to the pandemic and oversaw the Newcastle Covid Recovery Plan.

Pat was appointed Chair of the Government Property Agency in January 2020. In summer 2022 she took on the role of independent Chair of Metro Dynamics Company Board. She is also the Chair for Newcastle University Council.

She is a former Chief Executive of the Homes and Communities Agency (now Homes England) and former Deputy Chief Executive of the One North East Regional Development Agency.

She holds an Honorary Doctorate in Civil Law from Northumbria University and is a Fellow of Newcastle University.

Pat was awarded her CBE in January 2021 for services to local government and public service reform.

The Secretary of State appointed Pat Ritchie CBE as Interim Chair for 18 months from May 2025.

Peter Freeman CBE
Board member, Chair (until April 2025)

After qualifying as a lawyer, Peter Freeman CBE formed the Argent Group of property companies with his brother in 1981. Argent is particularly known for major mixed-use projects like Brindleyplace in Birmingham, and King’s Cross and Brent Cross Town in London.

Peter has also been a non-executive director for several other property companies and a trustee of a number of charities connected with education, combating intolerance, and public performance art.

He was shortlisted for the Wolfson Economic Prize on delivering garden cities in 2014 and was, until October 2020, Chair of Mayfield Market Towns Ltd. Peter was the principal author of the 2020 Housing Sprint Report. In July 2023 Peter was also appointed Chair of the Cambridge Delivery Group, tasked by the government to support a major growth programme for Cambridge. He was appointed in October 2024 by the Housing Minister as Chair of the Cambridge Growth Company Limited, a wholly owned subsidiary of Homes England.

Peter retired as Chair of Homes England in April 2025.

Eamonn Boylan
Board member, Chief Executive Officer (from January 2025)

Eamonn Boylan joined Homes England as Interim Chief Executive in January 2025. Prior to this, he was Interim Chief Executive of Manchester City Council. He was also one of 10 housing and development experts serving on the government’s New Towns Taskforce, though he stepped down prior to joining Homes England.

Eamonn has more than 4 decades of experience in prestigious public sector roles with a focus on leading large organisations and delivering place-based regeneration. As Deputy Chief Executive of Manchester City Council, Eamonn led the Regeneration Directorate, encompassing housing and planning and led major place-based regeneration projects in Hulme and Ancoats.

Eamonn has served as Chief Executive of the Greater Manchester Combined Authority, Transport for Greater Manchester, and Stockport Metropolitan Borough Council. While at Stockport, he led the Council’s £1 billion programme of investment in infrastructure and town centre regeneration.

Eamonn has also previously held the role of Deputy Chief Executive at Homes England.

Peter Denton
Board member, Chief Executive Officer (until January 2025)

Peter Denton joined Homes England in August 2021. Prior to this, he was Chief Executive Officer of housing association The Hyde Group.

Peter has worked in a broad range of strategic leadership roles, amassing 30 years of global real estate experience. Before joining the housing sector, Peter spent his earlier career in investment banking and then moved to property investment management firm Starwood Capital. During his investment career, Peter deployed over €25 billion of real estate capital and had significant exposure to investors and fundraising, working as a ‘bridge’ between the public, private and third sectors.

In addition, Peter has held senior EMEA real estate investment banking roles at BNP Paribas, Barclays, Deutsche Bank, Eurohypo and WestImmo. He is a non-executive Real Estate Investment Committee member at global investment company Eurazeo, a Council member and Chair of the Finance Committee at Marlborough College and a Global Trustee of the Urban Land Institute.

Peter left the Board in January 2025.

Abi Brown OBE
Board member

Abi Brown OBE is a deputy chairman of the Local Government Association (LGA). She also chairs the LGA Improvement and Innovation Policy Board, and the Improvement and Development Agency Board (IDeA).

Abi was leader of Stoke-on-Trent City Council between 2019 and 2023, deputy leader between 2015 and 2019, and remains a councillor for the city’s Meir Park ward, which she has represented since 2010.

Abi was awarded an OBE in 2024 for services to local government.

David Cutter
Board member, Chair of Audit, Assurance and Enterprise Risk Committee (from December 2024), Chair of the Home Ownership Committee (from August 2024)

David Cutter has extensive senior level experience in financial services and real estate. He was previously Group Chief Executive at Skipton Building Society for 12 years, overseeing governance, performance and a balance sheet of more than £30 billion.

David has chaired organisations including the Building Societies Association, Callcredit plc, Homeloan Management Ltd and Skipton Guernsey Ltd, and was a Non-Executive Director at Connells Ltd, the UK’s largest estate agency with 1,250 branches and a turnover of £1 billion. A chartered accountant and former chief internal auditor, David is also a non-executive director at Moorlands Learning Trust. He played international hockey for Wales between 1983 and 1991.

Mark Henderson
Board member, Chair of Change Committee

Mark Henderson is Chief Executive of Home Group, with 55,000 homes under management across Scotland and England and one of the largest providers of supported housing, working with 26,000 vulnerable people in services provided by Home Group to tenants. Home Group is also one of the largest developers of housing in the UK with a turnover of around £430 million per annum. It was voted the UK’s best Landlord and best Housing Association in 2014, 2016 and 2021.

Mark is currently Non-Executive Chair and a trustee of Whiteley Village Trust. He previously ran his own business before joining Home Group. Before that he worked with the North East Regional Development Agency as Operations Director and held a variety of regeneration and economic development jobs across the country in local government, most recently as Chief Executive of one of the largest county councils in the country. He was also a former Board member for the National Housing Federation and former Chair of Homes for the North.

Ros Kerslake CBE
Board member

Ros Kerslake CBE has more than 20 years’ board level experience in the property and regeneration sectors, serving as Chief Executive, Non-Executive Director and Chair for a number of public and private sector organisations.

Previously, she was Chief Executive Officer of the National Lottery Heritage Fund, overseeing around £400 million per annum of project investment, alongside a major organisation transformation programme of the UK-wide body. Her earlier roles include Chief Executive of The Prince’s Regeneration Trust, leading urban regeneration across the UK, Chief Executive for Regen Co, Sandwell, and Director of Property at Network Rail.

Ros was awarded a CBE in 2020 for services to British heritage and an OBE in 2016 for services to heritage. She is a qualified solicitor.

Sir Oliver Letwin
Board member

Sir Oliver Letwin was Managing Director of NM Rothschild until 2003, having previously served as a director. He was a Member of Parliament for West Dorset between 1997 and 2019, serving in senior ministerial posts in the UK government. He was Minister for Government Policy and Chancellor of the Duchy of Lancaster between 2010 and 2016, and between 2000 and 2010 held roles including: Shadow Chief Secretary to the Treasury, Shadow Home Secretary, Shadow Chancellor of the Exchequer, Shadow Environment Secretary and Chairman of the Conservative Policy Review.

Sir Oliver is a visiting professor at the KCL Policy Institute and an Advisory Council Member to the Bennett Institute for Public Policy at Cambridge University. Previously he taught Philosophy at Cambridge University.

Sadie Morgan OBE
Board member, Chair of Cross Cutting Committee

Sadie Morgan OBE is a co-founding director of dRMM. Championing design for over 2 decades, she holds government advisory roles including as a Commissioner for the National Infrastructure Commission. Sadie is a senior advisor for New London Architecture and Chair of its New London Sounding Board.

Sadie has held professorships at the University of Westminster and Cambridge University and co-founded the Quality of Life Foundation – an independent body prioritising wellbeing in the built environment.

Sadie is the Design and Sustainability Champion on our Board and has recently been made a commissioner of the 1851 Royal Commission.

Lesley-Ann Nash
Board member, Chair of Nominations and Remuneration Committee

Lesley-Ann Nash spent 2 decades in investment banking, building and leading structured interbank businesses. She was a Managing Director of Morgan Stanley, before leaving to offer her financial skills to government. She spent 7 years in the Cabinet Office leading a range of commercial programmes which positively impacted both the public and private sectors, as well as citizens nationally.

Since leaving government, Lesley-Ann has embarked on a non-executive director career. She has been appointed to the boards of St James’s Place plc (FTSE 100) and Workspace Group plc (FTSE 250). Following a period of time on the board of the business campaigning group, BusinessLDN she joined the board of the CBI (Confederation of British Industry).

Lesley-Ann is a fellow of the Chartered Institute of Management Accountants and holds an MBA from Cass Business School.

Lesley-Ann is the Equality and Diversity Champion on our Board and is also the non-executive Board Champion for compliance by Board members with the Gifts and Hospitality provisions of our Board Code of Conduct.

Peter Vernont
Board member, Chair of Investment Committee (from August 2024)

Peter Vernon has had a senior career in property, regeneration and management consultancy. He is a Senior Advisor at Places for London and Chair of Grosvenor Hart Homes. Peter was Group Executive Director of Grosvenor until 2021. Prior to Grosvenor he was a Partner with PwC Consulting. He has held non-executive director roles for organisations including The Berkeley Group plc and BusinessLDN. He also served as a Trustee of Peabody.

Peter was a member of the Policy Committee of the British Property Federation, the Montague Review of the Private Rented Sector, a commissioner of the City Growth Commission, and a member of the Government Estates Regeneration Panel.

Melanie Montanari and Emma Fraser
Board member, Shareholder Representative (appointed on a job share basis in October 2022)

Melanie Montanari is currently Co-Director for Housing Markets and Strategy at the Ministry of Housing Communities and Local Government (MHCLG), in a job-share with Emma Fraser.

Prior to her current role, she was responsible for Homelessness and Rough Sleeping policy at MHCLG. Before joining MHCLG, Melanie spent 15 years at HM Treasury in a range of public spending and public policy roles, including as Head of Personal Tax. In this role, she led major reforms to IR35, the landlord tax system and the ‘non-dom’ regime. She also held responsibility for general expenditure policy, leading on Spending Review preparations, and on welfare and labour market policy including introducing the National Living Wage and leading for the Chancellor on major reforms to the benefit system.

Melanie also worked as Speechwriter and Private Secretary to the Chancellor of the Exchequer. Alongside her work at MHCLG, Melanie sits on the Board of the Youth Futures Foundation.

Emma Fraser is a civil servant with extensive experience of working across a range of housing policy issues, currently Co-Director for Housing Markets and Strategy at MHCLG in a job-share with Melanie Montanari.

Prior to her current role, Emma was a Finance Director, leading the 2019 Spending Review and business planning for the Home Office, and previously headed the transport spending team in HM Treasury. She has also worked on health and social care policy at the Department for Health and Social Care and on energy efficiency financing and policy for the Department for Energy and Climate Change.

Lord Austin of Dudley
Board member (until February 2025)

Lord Ian Austin has spent a large part of his career working to meet housing needs by tackling homelessness, improving the provision of housing and addressing problems of affordability. Lord Austin spent a significant time of his career serving his local area of Dudley where he served on Dudley Council before becoming the Member of Parliament for Dudley North in 2005. During this time, he served as Minister for Housing and Planning and Minister for the West Midlands, and in 2020 was appointed to the House of Lords as Lord Austin of Dudley. He also serves as a member of the Corporation of Dudley College.

Lord Austin’s appointment expired in February 2025 and he accordingly left the Board during the financial year.

Stephen Bell
Board member, Chair of Audit, Assurance and Enterprise Risk Committee (until November 2024)

Stephen Bell has substantial experience in real estate, financial services, and restructuring. He has been involved in property finance, consumer and commercial lending, and specialist banking. He has held numerous C-Suite and Board roles for a broad range of institutions going through periods of transformation and growth. Stephen is a Certified Director and a Fellow of the Institute of Directors. He was the Whistleblowing Champion on our Board.

Stephen’s term of appointment expired in November 2024 and he accordingly left the Board during the financial year.

Mark Rennison
Board member (Senior Independent Director (until July 2024), Chair of Investment Committee (until July 2024), Chair of Home Ownership Committee (until July 2024)

Mark Rennison is the former Finance Director for Nationwide Building Society. He also chaired the subsidiary company at Nationwide which managed the Oakfield project to build a new housing community in Swindon.

Prior to joining Nationwide, Mark worked for PwC for 25 years, including spending time as an Audit Partner in their banking practice in London.

Mark’s appointment expired in July 2024 and he accordingly left the Board during the financial year.

Duncan Sutherland
Board member (until December 2024)

Duncan Sutherland has 40 years’ experience in property, housing, investment, regeneration and development with particular emphasis on public/private delivery partnerships involving government, local government, local communities and private investment.

Duncan set up his own company, Inpartnership Ltd, in 2000 implementing several innovative regeneration partnerships with the public sector. The company merged with Sigma Capital which has become a national leader in the private rented sector for family housing. He was also involved in setting up and operating a £1 billion PRS fund investing in the UK and the UK’s first successful PRS housing REIT.

Duncan has worked closely with government, promoting innovative and long-term investment approaches to achieving sustainable regeneration. He served as a non-executive director of the British Waterways Board and Scottish Canals and completed a 6 year term on the Board of HS2 Ltd in 2018, the new high speed railway. He has also served on the Capital Investment Advisory Board in the government’s Department of International Trade (DIT). Duncan also chaired Southbank Sinfonia at St John’s Smith Square, retiring last year after 12 years on the Board and 5 years as Chair. Duncan’s term of appointment expired in December 2024 and he accordingly left the Board during the financial year.

Board’s Responsibilities

Our Board is specifically responsible for:

• ensuring delivery of Homes England’s objectives, consistent with its overall strategic direction and within the policy and resources framework determined by the Secretary of State

• providing effective leadership of Homes England within a framework of prudent and effective controls which enables risk to be assessed and managed

• ensuring the Board receives and reviews regular financial and management information concerning the management of Homes England

• holding the Chief Executive to account for the effective and efficient delivery of the Homes England Annual Business Plan and for the day- to-day management, delivery and performance of Homes England

• ensuring it is kept informed of any changes which are likely to impact on the strategic direction of the Homes England Board or on the attainability of its targets

• ensuring that any statutory or administrative requirements for the use of public funds are complied with; and that the Board operates within the limits of its statutory authority

• approving the Annual Report and Accounts for submission to Parliament

• appointing, with the Secretary of State’s prior written approval, a Chief Executive

• overall governance, including preservation of the reputation of the Agency

• our relationships with MHCLG and other key stakeholders

• recommending to MHCLG the Agency’s overall strategic direction, within the policy and resources framework agreed and set out in the Framework Document

• approving the Agency’s draft corporate plans, including output targets, for submission to Ministers for approval

• agreeing the Agency’s annual budget, consistent with the strategic plan, for approval by MHCLG

• approving overall governance arrangements, including setting the Agency’s values and standards to ensure that the Agency’s affairs are conducted with probity, and that high standards of corporate governance are observed at all times

• ensuring the necessary financial and human resources, including key appointments, are in place to enable the Agency to safeguard its assets and meet its objectives

• approving overall arrangements for the delivery of the Agency’s strategic objectives

• receiving reports from Board Committees and Advisory Groups and considering any key issues that they raise

• approving any Compulsory Purchase Orders recommended by the Investment Committee

• ensuring that the Agency’s health and safety processes are effective and fulfil Homes England’s obligations under health and safety legislation

• approving Homes England’s Risk Appetite Statement and Risk Management Framework, assessing the periodic risk evaluations, and overseeing mitigation strategies on the recommendation of the Audit, Assurance and Enterprise Risk Committee

• considering property, litigation, legal and other corporate issues

• ensuring there are appropriate legal, financial and administrative arrangements covering the provision of the Agency’s pension schemes

The Board must also comply with any direction given by the Secretary of State under the Housing and Regeneration Act 2008, section 47. No such directions were given during the financial year.

Board and Committee Composition

The composition of the Board and its Committees has changed throughout the year, as set out in the Board and Committee Attendance section later in this Report. A full list of current Board members, and members who served throughout the year, is also detailed in that section.

How the Board Spent its Time

The role of the Board is to provide strategic leadership, and to promote the long-term, sustainable success of, and the desired culture within, Homes England.

The Board oversees the performance of the full range of the Agency’s operations. In particular, it determines the critical activities the Agency can progress towards achieving its strategic goals, including its contribution to the government’s 1.5 million new homes target and ensuring the structures of Homes England are aligned to support the government’s devolution agenda.

In 2024/25 the Board agreed the Agency’s Annual Business Plan, which aims to put our strategic objectives into practice. The Board has also been developing the Agency’s approach to placemaking, helping to deliver the government’s ambitions for devolution and working more closely with and through Strategic Authorities.

The Board receives and reviews regular performance information, scored against corporate targets and relating to the management and performance of the Agency. Housing supply data is published on a bi-annual basis in accordance with the Office for National Statistics Code of Practice for Official Statistics and is published at Housing statistics - GOV.UK.

The Board, and the Audit, Assurance and Enterprise Risk Committee, also receive, monitor and assess emerging risks to the Agency – both internally and externally – and take a view based on the Agency’s risk appetite.

In support of its work, the Board also conducted 4 site visits in 2024/25 to areas where Homes England is working with key strategic partners to make a difference, visiting Barking Riverside, Leeds, Plymouth, and Manchester.

Board Forward Look

The recruitment process for a new Board Chair commenced in December 2024 and a new appointment was made early in the new financial year. Pat Ritchie CBE, who has been a Board member since February 2022 and Deputy Chair since August 2024, has been appointed to the position of Interim Chair with effect from 1 May 2025.

During 2025/26, the Board will oversee activities to operationalise new funding streams, introduce more regional and place-based working, and establish requirements for implementation of a Target Operating Model (TOM). This will enable the Agency to deliver the strategic objectives set by government. Implementation of the TOM is expected to begin in 2026/27.

The Board will also drive forward delivery, helping the Agency achieve its strategic goals in support of the government’s ambitions to build 1.5 million high-quality homes.

Board and Committees as at 31 March 2025

Homes England Board

• Audit, Assurance and Enterprise Risk Committee

• Change Committee

• Cross Cutting Committee

• Home Ownership Committee

• Investment Committee

• Nominations and Remuneration Committee

Audit, Assurance and Enterprise Risk Committee (AAERC)

This Committee supports the Accounting Officer and Board in their responsibilities for risk control, governance, audit, financial stewardship and financial and statutory reporting. It reviews the comprehensiveness of assurance and reporting processes, consistent with the Accounting Officer’s assurance needs.

Particular areas of focus for 2024/25 have been:

• the large-scale change projects underway in the Agency, and how they mitigate risk and improve the control environment

• performance management, which the Committee has identified as a core enabler of many of the initiatives and developments that the Agency is undertaking

• Help to Buy, where the closure of the scheme and the transition to portfolio management has been a key activity for the Agency

The members of Audit, Assurance and Enterprise Risk Committee as at 31 March 2025 were David Cutter (Chair), Mark Henderson, Sir Oliver Letwin and Lesley-Ann Nash.

Change Committee

The Change Committee supports the Board by providing review and scrutiny of the Agency’s change portfolio and culture initiatives.

In 2024/25 this has included the strategic overview of the change portfolio, including the Evolve Transformation Change Programme of system enhancements, the Target Operating Model and Culture Enquiry work, which are shaping the Agency to meet its mission and objectives.

The members of the Change Committee as at 31 March 2025 were Mark Henderson (Chair), Abi Brown OBE, Ros Kerslake CBE, Emma Fraser/ Melanie Montanari (Shareholder Representative), and Pat Ritchie CBE.

Cross Cutting Committee

The Cross Cutting Committee supports the Board in fulfilling its responsibility for a greater focus on the cross-cutting objectives detailed in the strategic plan: safe, sustainable, well-designed and built homes including modular construction, design and sustainability.

Notable work of the Committee this year included:

• continuation of work on the Sustainable Placemaking Passport, with the Committee’s input on how this could be embedded across the Agency

• deep dives which considered key questions on long-term stewardship and Modern Methods of Construction

• input into the Agency’s Net Zero route map and related KPIs

• oversight of the Sustainability and Design Implementation Programme

• input into work carried out on the Nature Positive Plan (described in the Sustainability Report)

The members of Cross Cutting Committee as at 31 March 2025 were Sadie Morgan OBE (Chair), Abi Brown OBE, Sir Oliver Letwin and Peter Vernon. Peter Freeman CBE (Board Chair), attended as an observer.

Home Ownership Committee

During 2024/25 the Committee has overseen the management of the Help to Buy portfolio, together with various other legacy affordable housing programmes. It has overseen development of plans for the digital transformation of the customer servicing proposition of Help to Buy. The Committee has also focused on how to deliver long-term management of a closed portfolio of 240,000 loans, including how to support those customers that find themselves in financial difficulties. Additionally, the scope of the Committee is oversight of the Agency’s administration of the Cladding Safety Scheme, and of the wider Building Safety Portfolio, all of which are conducted by Homes England on behalf of MHCLG.

The members of the Home Ownership Committee as at 31 March 2025 are David Cutter (Chair), Mark Henderson, Abi Brown OBE and Emma Fraser/ Melanie Montanari (Shareholder Representative).

Investment Committee (IC)

The Investment Committee considers new programme proposals and reviews outside delegation business cases in support of development projects, land assembly, loans, infrastructure grants and equity investments. It also monitors programme and portfolio performance and progress on major schemes and approves certain aspects of the Agency’s procurement arrangements.

This year’s highlights included:

• a sustainable urban extension in Warrington (£64.5 million acquisition and infrastructure on a stalled scheme) set to deliver 4,200 homes

• an equity investment of up to £18 million into a new Joint Venture, Habiko LLP, to deliver a target of 3,000 homes across multiple schemes

• investment of £55.8 million to support the delivery of 2,350 homes in Central Docks, Liverpool by 2035

• a £124 million funding package for Barking Riverside, to provide vital infrastructure to support delivery of 20,000 homes in East London

• four recommendations under the Affordable Housing Guarantee 2020 scheme:

– £150 million to not-for-profit registered provider Wythenshawe Community Housing Group Limited, equally split between new development and improving existing stock

– up to £200 million to Vivid Housing Limited, focused on new development (c. 1,400 homes)

– up to £200 million to Torus62 Limited, split between new development and improving existing stock

– £100 million to not-for-profit registered provider Moat Homes Limited, split between new development and improving existing stock

The Committee also agreed the business case for the re-set of the Home Building Fund.

Additionally the Committee, also regularly reviewed the performance of Homes England’s investment portfolio, including investments in equity, MHCLG’s Affordable Homes Guarantee Scheme and loans including those that are non- performing.

The Committee received regular market updates and oversaw programme activity to mitigate the impact of the economic and market pressures upon delivery. Members also received papers on Affordable Housing Sector Debt Exposure and Related Risks, and pressures on the operation of Small and Medium Enterprises (SMEs).

Looking forward, the Committee will consider the Agency’s work with the government’s New Homes Accelerator Programme and the New Towns Taskforce, looking at ways that that common barriers to development could be unblocked.

The members of the Investment Committee as at 31 March 2025 were:

• Peter Vernon (Chair)

• Peter Freeman CBE (Homes England Chair)

• Eamonn Boylan (Interim CEO)

• Ros Kerslake CBE

• Pat Ritchie CBE

• Sadie Morgan 0BE

• Melanie Montanari/Emma Fraser (delegate - Diarmuid Swainson), MHCLG

• Marcus Ralling (Interim Chief Investment Officer)

• Jo Nugent (Director Regional MPP)

• Adam Cooper (Finance Director)

• Alison Crofton (Interim Chief Property Officer)

Representatives from the Infrastructure and Projects Authority and HM Treasury are also invited to attend meetings as observers.

Nominations and Remuneration Committee (NRC)

The Nominations and Remuneration Committee is responsible for advising on overall pay and rewards; the remuneration, contractual and pension arrangements of staff at director level and above; senior succession planning; key HR policies; and setting and agreeing the annual performance objectives, remuneration terms and other terms and conditions of employment of the Chief Executive.

Notable business this year included:

• oversight of the Homes England 2024/25 annual Equality, Diversity and Inclusion Report and Action Plan

• oversight of the implementation of the People and Culture Strategy

• agreeing a Board succession planning procedure and annual Board training programme

The members of Nominations and Remuneration Committee as at 31 March 2025 were Lesley-Ann Nash (Chair), Peter Freeman CBE, David Cutter, Sir Oliver Letwin, and Emma Fraser/Melanie Montanari (Shareholder Representative).

Board and Committee Performance

In line with our ambition to ensure we have the best and most effective governance, our Board and its Committees regularly review their own performance, both informally at the end of meetings and though more formal mechanisms, such as questionnaires and reviews. In 2024/25, and in accordance with the recommendations of the recent Homes England Public Bodies Review, published on 8 April 2024, the Board undertook an externally led Board Effectiveness Review, which will report during 2025/26.

Board and Committee Attendance 2024/25

The following table sets out the number of meetings each member attended during the year, and the number of meetings they were eligible to attend:

Name	Notes	Board	Audit, Assurance and Enterprise Risk Committee	Change Committee	Cross Cutting Committee	Home Ownership Committee	Investment Committee	Nominations and Remuneration Committee
Lord Ian Austin	Left the Board in February 2025	7/10	-	1 (for quorum)	2/4	3/5	-	-
Stephen Bell	Left the Board in November 2024	6/8	5/5	-	-	-	-	1/4
Eamonn Boylan (Chief Executive Officer and Accounting Officer)	Joined the Board in January 2025	4/4	-	-	-	-	-	-
Abi Brown OBE	Joined the Board in May 2024	8/11	-	5/5	3/3	1/4	-	-
David Cutter	Joined the Board in May 2024	11/11	5/5	-	-	4/4		3/4
Peter Denton (Chief Executive Officer and Accounting Officer)	Left the Board in January 2025	8/8	-	-	-	-	-	-
Emma Fraser/ Melanie Montanari	-	12/12	-	5/6	-	5/5	10/11	5/5
Peter Freeman CBE (Chair)	Left the Board in April 2025	11/12	-	-	3/4 (observer)	-	7/11	5/5
Mark Henderson	-	11/12	4/6	6/6	0/1 (left Committee)	3/5	-	-
Ros Kerslake CBE	Joined the Board in May 2024	10/11	-	5/5	-	-	7/9
Sir Oliver Letwin	Joined the Board in May 2024	9/11	3/5	-	3/3	-	-	3/4
Sadie Morgan OBE	-	9/12	-	-	4/4	-	7/11	-
Lesley-Ann Nash	-	11/12	4/6	-	-	-	-	5/5
Mark Rennison	Left the Board in July 2024	2/3	3/3	1/2	-	1/2	4/4
Pat Ritchie CBE (Deputy Chair)	Appointed Chair in May 2025	10/12	-	4/6	-	-	6/11
Duncan Sutherland	Left the Board in December 2024	8/8	-	3/5	-	-	5/8	0/4
Peter Vernon	Joined the Board in May 2024	11/11	-	-	2/3	-	8/9	-
Meetings		12	6	6	4	5	11	5

Declarations of Interest

The Agency has reviewed its detailed policy and guidance on declarations of interest for all staff, which complies with the requirements of the Civil Service Management Code and includes the requirement to make an annual declaration of interests as well as record any changes. We review all recorded interest returns to ensure that they are permitted, and they are managed as part of our assurance to Board. Any sensitive interests are managed through an Ethics group, which is accountable to the Audit, Assurance and Enterprise Risk Committee.

We also have a policy in place for Board members, which is contained in their Code of Conduct, and based on Cabinet Office guidelines. Members must declare interests at any meeting and withdraw from a meeting before discussion of any matter in which they have an interest.

As part of our additional assurance, we now maintain a register of all Board and officer interests centrally, to allow secretariat and project officers to review member and officer interests more readily when they are bringing reports to Committees.

Register of Board Members’ Interests

The Homes England Board members’ register of interests is a public record published on the Gov.uk website in which members list all direct or indirect financial interests and non-financial interests where they have a direct bearing on the business of the Agency. Our executive directors’ register of interests is published alongside the Board member declarations.

Personal Data Related Incidents

Since 25 May 2018, under the UK General Data Protection Regulation and the Data Protection Act 2018, there has been a mandatory requirement to report any personal data breach if there is a risk to the rights and freedoms of the data subjects whose data has been breached.

There was significant training on awareness raising activities during 2024/25. Several minor data breaches were reported to our Data Protection Officer during the financial year. In nearly every case, these were resolved internally without data loss or risk to individuals. There was one personal data breach that met the threshold for mandatory reporting. The Information Commissioner’s Office confirmed they were content with Homes England’s action to contain the breach and closed the matter without the need for further investigation.

Meet the Executive Leadership Team

The Executive Leadership Team (ELT) is our principal operational decision-making group for implementing the corporate strategy, operational policies and procedures of Homes England. The executive directors work with the Chief Executive to ensure that the deployment of resources is sufficient to maintain delivery and that our corporate services provide effective service support.

There were a number of changes to the ELT during the financial year. Richard Collins, Peter Denton, Lynda McMullan, Mike Palin and Adrian Tucker all left during the year.

On 31 March 2025 the Executive Leadership Team comprised:

• Eamonn Boylan - Interim Chief Executive and Accounting Officer

• Kirsty Shaw - Chief Operating Officer

• Ian Workman -Chief Customer Officer

• Alison Crofton - Interim Chief Property Officer

• Marcus Ralling - Interim Chief Investment Officer

• Adam Cooper - Finance Director (in attendance only)

• Jo Nugent - Director Markets, Partners and Places (in attendance only)

• Rebekah Hillcoat - Assistant Director Enterprise and Operational Risk (in attendance only)

• Paul Murphy - Deputy Chief Risk Officer and Director of Transaction Risk (in attendance only)

• Mike Wiltshire - Director Strategy, Research and Analysis, Sponsorship (in attendance only)

Eamonn Boylan
Board member, Chief Executive Officer (from January 2025)

Eamonn is a Board member of Homes England and his full biography appears in the Board section.

Kirsty Shaw
Chief Operations Officer

Kirsty Shaw joined Homes England in September 2022. She is Homes England’s first Chief Operating Officer. She previously held the role of Chief Operating Officer at the Care Quality Commission, prior to that she has held a number of senior roles in central government and arm’s-length bodies leading complex operations and delivering organisational wide transformation programmes.

At Homes England, Kirsty’s focus is on unlocking operational efficiency and effectiveness, ensuring that the Agency has the right systems, structures, people and processes to deliver our objectives.

Ian Workman
Chief Customer Officer

Ian Workman joined Homes England in November 2022, having worked for over 30 years in the banking industry. He spent much of his career at Barclays in both Retail and Commercial Banking and was most recently the Managing Director for SME/Business Banking Relationships for the UK.

After leaving Barclays, Ian worked with Recognise Bank, a challenger bank. He joined Homes England from the Yorkshire Building Society, where he was the Interim Strategy Lead for YBS Commercial Mortgages.

Ian has a particular interest in Equality and Diversity, having led on a number of initiatives, and during this year completed a Masters Degree in Equality and Diversity.

Alison Crofton
Chief Property Officer

Alison Crofton joined Homes England in 2020 and currently leads the Agency’s Land and Development directorate which drives forward our ambition to deliver high-quality homes in thriving places. This is achieved through the acquisition and unlocking of both public and private land where the market won’t, by removing constraints, securing planning permission and releasing market ready sites to get more homes built where they are needed.

Alison is a member of the Institute of Building and a Chartered Environmentalist with the Society for the Environment, bringing more than 20 years’ experience in delivering major housing and mixed- use developments.

In addition to the Chief Property Officer role, Alison sits on the Board of Directors at both the English Cities Fund and New Homes Quality Board.

Marcus Ralling
Chief Investment Officer

Marcus Ralling is the Interim Chief Investment Officer. He has worked in UK and European real estate for over 30 years and has extensive experience of strategic portfolio and asset management.

He joined Homes England having just completed a Masters in Housing and City Planning at UCL London, following time as Managing Director and Head of European Asset Management at Global Investment Firm KKR. Prior to that, he was Managing Director and Head of UK and European Asset Management at PGIM.

Adam Cooper
Finance Director

Adam Cooper has been with the Agency since 2013, joining as a senior manager responsible for building a team to account for the Agency’s growing investment portfolio, including Help to Buy which launched that year. He has worked in a number of roles across Strategic Finance and Financial Reporting, being appointed Finance Director in 2021.

Before joining the Agency, Adam trained as a Chartered Accountant with the National Audit Office where he led audits for the Department of Health and Homes England, and prior to this he spent 14 years as a design consultant, working for multi-national and national companies on corporate identity, literature, packaging and online media projects.

Jo Nugent
Director, Markets, Partners and Places (MPP)

Jo Nugent holds the delegations for the Executive Director of Markets, Partners and Places (MPP), a multidisciplinary team who work through the Agency’s place-based approach, and who have a remit to identify, lead on, and provide co-ordinated Agency-wide support to large-scale, complex and innovative projects. These are projects that require multiple interventions and whose delivery is achieved through partnerships with local stakeholders and sectoral institutions, working with, and across, government to realise housing and growth ambitions.

Rebekah Hillcoat
Assistant Director, Enterprise and Operational Risk

Rebekah Hillcoat joined the Risk Change Team at Homes England in 2021, later moving into the role of Assistant Director, Risk Transformation (Evolve) and joining the Risk Leadership team. Rebekah now leads Enterprise and Operational Risk.

Paul Murphy
Deputy Chief Risk Officer and Director of Transaction Risk

Paul Murphy joined the Agency as Deputy Chief Risk Officer in 2018. He commenced his working career in Hong Kong in 1991 and spent 27 years in the financial sector, working across various countries and institutions.

Mike Wiltshire
Director Strategy, Research, Analysis and Sponsorship

Mike Wiltshire joined Homes England in 2018 and leads the Strategy, Research, Analysis and Sponsorship Unit which focuses on: cross-agency strategy development; the Agency’s research, economics and analysis portfolio, headed up Homes England’s Chief Economist; market engagement; and Homes England’s Government Sponsorship function.

Prior to joining Homes England, Mike was a civil servant in Cabinet Office, MHCLG and the Department for Business, Energy and Industrial Strategy, where he led work to devolve power to city-regions and drive local economic growth. This included: the establishment of elected city-region mayors; the negotiation and implementation of devolution, growth and city deals across England, Scotland and Wales; and leading work to drive housing-led growth in the Oxford, Milton Keynes and Cambridge corridor.

Before joining the civil service, Mike worked in local government for over 10 years across London, South East England and South West England.

Executive Leadership Team Structure

Executive Leadership Team

Shadow Leadership Board

• Change Portfolio Executive

• Delivery Oversight

• Development Project Executive

• Equity Management Executive

• Investment Project Executive

• Place Project Executive

The Executive Leadership Team (ELT) is responsible for delivery and assurance to the Board of the strategic plan objectives, risk, budget and performance reporting.

ELT is supported by 4 executive groups and 3 Project Executives, which deal with Investment and Development approvals. ELT also has the benefit of engagement from a Shadow Leadership Board.

Executive Groups:

• Change Portfolio Executive

• Delivery Oversight

• Equity Management Executive

• People Executive (wound up in June 2025 when its work passed to ELT)

Project Executives:

• Development Project Executive

• Investment Project Executive

• Place Project Executive

Change Portfolio Executive monitors the Agency’s programme of change projects.

Delivery Oversight considers the most significant projects at concept stage and, if outside the Agency’s delegation, will consider the full business case before it is submitted to the Investment Committee.

Equity Management Executive maintains oversight of the of the Agency’s group structure and the launch and ongoing performance of the Agency’s equity vehicles.

Together, the Development Project Executive, Investment Project Executive and Place Project Executive support the executive level approval process for the Agency’s investment and development projects, including multiple interventions in our priority places.

The following groups were mapped to the Board Committees during the financial year:

• People Executive to Nominations and Remuneration Committee

• Change Portfolio Executive to Change Committee

• Delivery Oversight provides assurance on programmes and portfolio delivery to the Investment Committee and assurance on policy matters to the Cross Cutting Committee. Delivery Oversight is also linked to the Project Executive approval groups as it oversees projects

Shadow Leadership Board

The Shadow Leadership Board (SLB) was formed in September 2022, with 12 members from across the Agency who, as a collective, bring together a diverse range of experience, skills, and insights.

SLB is made up of people in Senior Specialist/ Senior Manager roles and below, to give those who are sometimes under-represented the ability to share their voice. The SLB shadows our Executive Leadership Team and shares its reflections around key challenges facing Homes England and other subjects being discussed, as part of ELT agendas to diversify the perspectives that ELT are exposed to from across the organisation.

As with all of the Agency’s governance structures, these arrangements are reviewed regularly, to ensure they continue to meet the needs of the Agency.

Delivery Board Structure

Recommendations to improve the operation of Homes England’s Delivery Boards as key forums to oversee and assure programme performance were included in the recent Homes England Public Bodies Review (April 2024) and the Homes England Chair’s letter (September 2024).

As a result, the structure of the Delivery Boards was re-set to allow for consolidated consideration of land and infrastructure programmes, with the overall number of Boards reducing from 7 to 6.

The Delivery Boards form part of a policy delivery partnership model agreed with MHCLG, and cover Affordable Housing, Building Remediation, Help to Buy and Legacy Schemes, Housing Infrastructure Fund, Land, Infrastructure and Regeneration, and Market Diversification.

The Delivery Boards provide oversight and assurance to the Agency and MHCLG on delivery of programmes and funds, and inform strategic and policy decision making for the Agency and relevant MHCLG Programme Boards. They monitor in-year and lifetime performance, manage emerging risks, and agree on actions to optimise performance. The Delivery Boards also include representatives from the Infrastructure and Projects Authority (now absorbed into the new National Infrastructure and Service Transformation Agency (NISTA) during 2025/26) and HM Treasury, to give them the opportunity to oversee performance and input into key decisions.

Management information and performance reporting and forecasts from the Delivery Boards form part of the Agency performance reporting to the ELT and Board.

On the MHCLG side, performance reporting from Agency Delivery Boards is also considered by the MHCLG Policy Programme Board, where a holistic view of performance is discussed with senior MHCLG officials. Every quarter, the MHCLG Policy Programme Board examines a long-term view of Agency performance, addressing lifetime delivery and alignment to policy objectives.

Board and ELT

MHCLG Policy Programme Board

• Affordable Housing Delivery Board

• Building Remediation Delivery Board

• Help to Buy and Legacy Systems Delivery Board

• Housing Infrastructure Fund Delivery Board

• Land, Infrastructure and Regeneration Delivery Board

• Market Diversification Delivery Board

External Auditors

The Comptroller and Auditor General is the statutorily appointed auditor under the provisions of the Housing and Regeneration Act 2008.

The cost of work performed by the auditor for 2024/25 is £630,000 (2023/24 £575,000).

As part of the annual audit of Homes England, the National Audit Office (NAO) may issue recommendations to strengthen governance and accountability. Such recommendations are considered by senior management, reviewed by the Audit, Assurance and Enterprise Risk Committee, and solutions are implemented where appropriate.

Public Scrutiny

As an arm’s-length body of MHCLG, Homes England is subject to government and Parliamentary scrutiny. The Agency must respond to formal calls for evidence (written and hearings) from Select Committees, including the Public Accounts Committee (PAC), and support studies and audits led by the NAO.

A major public scrutiny focus in 2024/25 was on building remediation, with the NAO’s value for money report on Dangerous Cladding: the government’s remediation portfolio, and the subsequent PAC hearing and report on The Remediation of Dangerous Cladding. As the evidence session fell during the handover of Homes England’s Accounting Officer responsibilities, the Agency’s Director of Cladding Safety gave evidence on behalf of the Agency, also meeting a stated aspiration of the PAC to hear from more operational and technical specialists.

The NAO recommended that Homes England and MHCLG consider new actions to incentivise responsible entities to apply to their Programmes and increase the pace of remediation. While Programmes are not directly comparable and the Cladding Safety Scheme is still at an early stage, there are initial indications that it is faster and much cheaper to run than the Building Safety Fund.

Homes England also provided input into NAO studies on ‘The effectiveness of government in tackling homelessness’ (July 2024) and ‘Improving local areas through developer funding’ (June 2025).

The Levelling Up, Housing and Communities Select Committee also published the report into The Finances and Sustainability of the Social Housing Sector in May 2024. Homes England contributed written and oral evidence to this inquiry.

Statement of Accounting Officer’s Responsibilities

Under the Housing and Regeneration Act 2008, the Secretary of State (with the consent of HM Treasury) has directed Homes England to prepare for each financial year, a statement of accounts in the form and on the basis set out in the Accounts Direction. The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of Homes England and of its income and expenditure, Statement of Financial Position and cash flows for the financial year.

In preparing the accounts, the Accounting Officer is required to comply with the requirements of the Government Financial Reporting Manual and to:

• observe the Accounts Direction issued by the Secretary of State including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis

• make judgments and estimates on a reasonable basis

• state whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the Financial Statements

• prepare the Financial Statements on a going concern basis; and confirm that the Annual Report and Accounts as a whole are fair, balanced and understandable and take personal responsibility for the Annual Report and Accounts and the judgements required for determining that it is fair, balanced and understandable

The Ministry of Housing, Communities and Local Government Principal Accounting Officer has delegated Accounting Officer responsibilities to me, Eamonn Boylan, as the Interim Chief Executive of Homes England. The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable, for keeping proper records and for safeguarding Homes England’s assets, are set out in Managing Public Money published by HM Treasury.

As the Accounting Officer, I have taken all the steps that I ought to have taken to make myself aware of any relevant audit information and to establish that Homes England’s auditors are aware of that information. So far as I am aware, there is no relevant audit information of which the auditors are unaware.

I confirm that the Annual Report and Accounts as a whole are fair, balanced and understandable and I take personal responsibility for the Annual Report and Accounts and the judgments required for determining that they are fair, balanced and understandable.

Governance Statement

Introduction

Homes England is a non-departmental public body sponsored by the Ministry of Housing, Communities and Local Government (MHCLG). Our relationship with MHCLG, including how we interact, the parameters within which we operate and the obligations we comply with, are formally governed by a Framework Document which:

• recognises our functional and day-to-day operational independence

• sets out our governance and decision-making arrangements

• sets out the financial and management processes that govern our operation

The Framework Document is the key document governing the Agency’s relationship with MHCLG. The Framework Document in place during this reporting period was published in March 2023.

Homes England has complied with the Corporate Governance in Central Government Departments: Code of Good Practice.

Risk Management

Risk Management Framework

Homes England’s approach to risk management aligns with the 5 principles set out in HM Treasury’s Orange Book – Management of Risk: Principles and Concepts. Our framework takes a comprehensive and holistic view, ensuring risks are identified, assessed, managed, and monitored effectively across the organisation.

Compliance with the Orange Book Principles

As a public sector organisation, Homes England is required to either comply with or explain any departures from the 5 key principles of the Orange Book. We have assessed our risk management arrangements against the Orange Book, and the assessment confirms that the Agency broadly complies with its core principles. Specifically:

• Governance and Leadership: Risk management is embedded within governance structures and is integral to leadership at all levels.

• Integration: Risk management informs strategic planning, operational decisions, and daily business activities.

• Collaboration: Our approach is underpinned by cross-functional collaboration and informed by the best available data and expertise.

• Continuous Improvement: We actively learn from experience to refine our risk management practices.

• Risk Management Processes: While we have made significant progress, full compliance with the principle relating to risk management processes is still in development. During 2024/25, we focused on establishing foundational controls assurance activities and learning from the initial implementation. For 2025/26, we have refined our approach and developed risk and compliance-based assurance plans to deliver proportionate, coordinated, and effective risk management support for the Agency’s objectives.

Homes England’s Risk Management Framework (RMF) is supported by a suite of essential risk policies and procedures, including clear definitions of risk appetite and outlining key processes for effective risk management. The Agency’s risk database documents the outcomes of the risk assessment process, detailing the identification, assessment, and control of risks. The risk reporting cycle operates on a quarterly basis, with the ELT receiving monthly reports on specific categories of risks and corresponding controls.

Focus Areas for Maturity and Improvement

As part of our commitment to advancing a strong risk culture that enables informed decision-making, we have identified 3 key areas for enhancement:

• Horizon Scanning: Strengthening our capacity to identify and respond to a broader range of internal and external risks.

• Risk Data: Improving the quality and integration of risk data across the organisation to enhance analysis, reporting, and responsiveness.

• Functional Standards: Further embedding government functional standards into our risk management environment.

Framework Governance and Oversight

The RMF is the guiding structure that integrates risk management into all levels of the organisation. It includes policy, strategic, operational, transactional, financial, and fiduciary risks, ensuring they are managed in a coordinated and integrated manner with consideration for interdependencies and their impact on the enterprise.

In late 2023, the Board reviewed and updated the RMF to ensure it remained aligned with strategic priorities and operational delivery. The updated framework was in place throughout the financial year and remains effective up to the date of this Annual Report and Accounts. A comprehensive review is scheduled for 2025/26 to ensure continued alignment with our evolving objectives.

Homes England continues to operate in accordance with the ‘Three Lines Model’, ensuring that risks are managed at the appropriate level:

• The First Line comprises individuals responsible for identifying, assessing, managing, and owning risks and controls within their business areas and support functions.

• The Second Line oversees the implementation of risk management practices and includes the Risk Team, along with risk policy owners and managers.

• The Third Line is the internal audit function, which is independent of day-to-day operations and reports to the Audit, Assurance and Enterprise Risk Committee (AAERC) on the effectiveness of the overall risk management framework and control environment.

The ELT is accountable for operationalising the Agency’s risk management and processes, ensuring they are resilient, comprehensive and aligned with strategic objectives, with oversight provided by the AAERC, reporting into Board.

Further information on the Agency’s risk profile can be found within the Overview of Performance and Risk section, as well as in the Principal Risks Impacting Delivery section of this Annual Report and Accounts.

Risk Appetite

Homes England defines its risk appetite as the level and type of risk the Agency is willing to accept in pursuit of its strategic objectives. This is a fundamental component of our governance and decision-making, ensuring risks are taken in a controlled, proportionate, and transparent manner that aligns with public value and accountability.

The Risk Appetite Statement, approved by Board, uses the following 3 levels of risk appetite:

• Open – Receptive to considered risk taking when benefits outweigh risks, or if the risk is outside the ability of the Agency to meaningfully control.

• Neutral – Acceptable, if within programme parameters. Considered risk-taking by senior management in the pursuit of the Agency’s objectives.

• Averse – Taking this type of risk is not required to deliver Homes England strategic objectives. Risks are unacceptable and must be avoided, fully mitigated or minimised.

The Agency continues to adopt a structured approach to risk appetite, setting thresholds at the Primary Risk Level, which defines acceptable risk exposure across all areas of the business. This level provides a consistent, organisation-wide reference point for determining whether risks should be accepted, mitigated, or avoided.

In some cases, risks that sit beneath these primary categories may warrant more specific considerations. Where relevant, Secondary Risk Levels may be defined to reflect operational nuances, but any such adjustments must remain within the boundaries of the overarching Primary Risk appetite—never exceeding it in appetite.

Risk Categories

We have reviewed our Primary Risk categories, shown on the next page. This review has led to 2 changes: the addition of Value for Money Risk (VfM) and removal of Reputational Risk.

Value for Money Risk

The Agency adopts an Averse appetite for VfM risk. This reflects our commitment to robust cost control, fiscal prudence, and alignment with HM Treasury guidance, including Green Book principles. Whilst we continue to support innovation and strategic delivery, all activities must be underpinned by strong business cases, evidence-based assessments, and a clear proportionality between risk and benefit. This ensures that public funds are used effectively, responsibly, and in ways that maximise long-term impact.

Refinement of Reputational Risk

As part of our continued maturity in risk management, we have refined our approach to Reputational Risk, recognising the need to distinguish between different drivers of reputational impact. Previously considered as a single Primary Risk category, it is now separated into 2 distinct secondary risks to allow for clearer oversight and more tailored responses:

1. Credibility Risk

• Definition: The risk of adverse public or stakeholder perception arising from strategic actions that are aligned with Homes England’s objectives but may generate external criticism.

• Risk Category: Policy and Strategy Risk

• Risk Appetite: Open – Reflecting a recognition that delivering bold and ambitious interventions may invite external challenge, and a willingness to accept this where actions remain within strategic and policy boundaries.

2. Reputational Damage Risk

• Definition: The risk of reputational harm resulting from operational failures, ethical breaches, or non-compliance.

• Risk Category: Operational Risk

• Risk Appetite: Averse – Demonstrating the Agency’s firm stance on minimising preventable incidents that could damage stakeholder trust or public confidence.

The Agency’s 7 Primary Risk categories and Risk Appetite position are listed below:

Policy and Strategy Risk - Open
The risk of changes in government policy priorities, external mandates, or shifts in Homes England’s strategic direction leading to misalignment with its mission, altered deliverables, impacts on the operating model, or expansion/reduction of areas of responsibility.

Economic Risk - Open
Risk of changes in the macroeconomic environment leading to volatility in the UK housing market, resulting in unsustainable levels of strategic change.

Regeneration and Housing Delivery Risk - Open
The risk of Homes England’s interventions, decisions, or activities not delivering the anticipated outcomes, leading to missed objectives, inefficiencies, or setbacks in achieving its mission. This arises from inherent uncertainties, evolving circumstances, or the complexity of the housing and regeneration landscape, including the possibility of unforeseen challenges or initiatives occasionally falling short of expectations as a trade-off in pursuing ambitious goals.

Financial Risk - Neutral
Risk of Homes England’s credit/investment decisions leading to a financial loss or sub-optimal recovery outside agreed tolerance, resulting in an inability to achieve planned recovery rates.

Value For Money Risk - Averse
Risk of Homes England failing to achieve optimal value for money in its programmes, interventions, or operational activities, leading to inefficient use of public funds, sub-optimal outcomes, or reduced stakeholder trust.

Operational Risk - Averse
Risk of losses or adverse outcomes resulting from inadequate processes, resources, or systems being ineffective.

Fiduciary, Economic Crime and Fraud Risk - Averse
Homes England will comply with all regulatory requirements. The Agency will put in place appropriate levels of controls to identify scheme abuse, failures in fiduciary duty (by Homes England or third parties owing Homes England a duty), economic crime, and fraud within its various programmes. These will be proportionate and consistent with best practice across government for similar activities. Given the scale and diversity of its interventions, the Agency recognises that a level of scheme abuse is unavoidable. When identified this will be proactively pursued and all legal and commercial means available to the Agency deployed to address it.

Risk Culture

Our risk culture is closely aligned to the principles set out in the Orange Book, our strategic plan and to the Agency’s values.

We recognise that fostering a strong culture of good risk behaviours enables us to anticipate and address risks early, supports us to seize opportunities and achieve our objectives.

We are committed to building a culture that prioritises effective risk management and continuous improvement in our control environment. Our approach to risk reflects our shared values and highlights the importance of working together and being accountable.

By working together, we strive to make well- informed, transparent decisions and to proactively avoid unnecessary and unexpected challenges.

We are committed to promoting a positive and mature approach to risk management by sharing lessons, celebrating good practise and delivering regular training. Through these efforts, we continue to strengthen how we manage and understand risk across our organisation.

Countering Economic Crime

Homes England is committed to the effective management and application of public funds. The Agency sets high ethical standards while achieving value for money. Our Anti-Economic Crime (AEC) framework focuses on applying proportionate and risk-based due diligence and improving fraud intelligence and assessment through external source partnerships and data analytics.

In 2024/25 the Agency was subject to an assessment of its compliance to the government’s Counter Fraud Functional Standard (GovS013) by the Public Sector Fraud Authority (PSFA). The PSFA rated the agency as ‘In Development’. Our activity in the coming year will focus on addressing the findings of this assessment through improvements to our framework, processes, systems and controls.

This will incorporate embedding controls to comply with the new offence of ‘failing to prevent fraud’. Our revised framework will be submitted to Board for approval in 2025/26.

Cases of suspected economic crime and fraud are reported to our AEC team. These are assessed and, where the allegations have grounds for further review, are investigated and actioned accordingly. All suspicions of money laundering and other crimes are reported to the appropriate authority in line with our obligations under the Proceeds of Crime Act 2002.

Additionally, all cases of identified fraud, error or loss are escalated and reported quarterly to MHCLG and the PSFA. The quarterly returns will be subject to scrutiny by the Agency’s Audit, Assurance and Enterprise Risk Committee.

We monitor the government’s UK sanctions regime guidance against our consumer and development partners to ensure we comply with the UK’s financial sanctions regime requirements.

As part of our commitment to achieving greater social value benefits, we continue to identify and eradicate modern slavery across all our business activities and in our supply chains. AEC continues to support colleagues in identifying such risks and to externally report suspicion of modern slavery to the authorities.

Our continued commitment to continuous improvement in risk training has led to us developing an enhanced suite of e-learning courses which will be mandatory for all staff to complete. These will be implemented from April 2025.

Risk Events and Near Misses Reporting

Our risk incident reporting process focuses on encouraging open and blame free discussions about risks, near misses and incidents.

This approach helps us to identify risks, understand their root cause and determine the best ways to address them. It also provides a platform to highlight necessary improvements in our controls and to gain a clear understanding of risks that could impact our objectives.

Our enterprise-wide risk incident reporting tool simplifies the process of reporting incidents promptly, offering greater visibility to evaluate and learn from them. These actions reflect our commitment to developing a proactive risk culture and continually enhancing our risk management practises.

In 2024/25, we recorded 143 operational risk incidents and near misses, resolving 140, with other risks actively managed. Each incident was addressed with corrective actions and ongoing monitoring to reduce the likelihood of similar occurrences in the future.

Specific risk and control disclosures - breach of commercial control

During quarter 4 2024/25, irregular expenditure i.e. incurred beyond the Agency’s authority, was identified in the Evolve Transformation Change Programme. This occurred as a result of spend being incurred without an approved commercial contract being in place. The value of irregular expenditure is £1.4 million.

In January 2025, management consultants were instructed to undertake digital discovery work. This was outside the scope of their original appointment and commenced in advance of securing approval through established contract variation processes.

The contract variation process highlighted that further approval would be required to adhere to digital spend controls (where enhancements were made in 2024/25 to make sure government organisations spend public money efficiently and effectively, aligning to government digital and data standards).

Accordingly, a submission was made to the Portfolio Assurance Board (PAB), which is made up of representation from Chief Digital and Data Office, MHCLG and the Agency, and assesses this form of activity.

Whilst the approval sat outside the delegation of the PAB, they communicated what additional information would be required for the case to be referred on for consideration by Government Digital Service.

In the interests of overall project timescales, a decision was taken by Homes England to allow consultants to continue to proceed with commissioned work whilst appropriate spend control approvals were obtained. Further information was provided to PAB, but this did not satisfy the requirements for approval and therefore approval was not subsequently secured. The spend incurred was therefore irregular and work on the contract was stopped immediately following instruction from MHCLG.

This issue has been thoroughly examined to determine the nature, underlying causes and associated risks. Control improvements have and are being implemented to enhance control, oversight and governance, to prevent recurrence. We remain committed to upholding financial accountability and transparency in all transactions.

Risk and Control Assurance

Assurance activity within risk

Over the year, we have focused on establishing a structured approach to assessing risk and compliance control design and effectiveness. While initial assurance activities were broad, they marked the first structured controls assurance at scale. Key lessons learned include the need for a more targeted, efficient and risk-based approach. In 2025/26, we will implement a prioritised assurance plan and a streamlined methodology to ensure greater efficiency and impact. We will continue to prioritise the need for improvements to risk and control data to better support our prioritised and effective assurance approach.

Assurance arrangements over services performed by mortgage administrator

A System and Organisation Controls 1 (SOC1) assurance review was commissioned by the Help to Buy mortgage administrator over their IT and operational controls, covering the period December 2024 to March 2025.

This work is close to completion and an interim update from the firm undertaking the work indicates that there are no significant findings to date. Despite the absence of a final independent SOC1 assurance report, the interim update and the results of detailed sample testing undertaken by both the mortgage administrator and the Agency across the financial year indicate no material concerns over the Help to Buy data and related controls.

Internal Audit

Internal Audit is required to provide an annual opinion on the overall framework of governance, risk management and control to inform the Governance Statement. It delivers a plan of work agreed with the Accounting Officer and the Board, through the Audit, Assurance and Enterprise Risk Committee (AAERC), to provide an overall assurance opinion.

The annual opinion is informed through Internal Audit’s formal programme of reviews as well as ongoing observations, consideration of work delivered through other assurance functions and the independent validation of progress with, and improvements made to, the control environment.

The overall assurance provided for 2024/25 is a ‘Moderate’ opinion. This means that ‘some improvements are required to enhance the adequacy and effectiveness of the framework of governance, risk management and control’.

The assurance level provided in 2023/24 has therefore been maintained, although the direction of travel is assessed as declining. The coming year is considered crucial to enable areas of exposure to be addressed, the direction of travel stabilised and reversed, and the current overall opinion level retained and sustained. In response, management are enhancing measures to grip and monitor improvement activity which will be reported regularly to AAERC during 2025/26.

Whistleblowing

Homes England’s Whistleblowing Policy includes contact details for our colleagues to raise concerns of wrongdoing matters that are made in the public interest.

All disclosures are treated seriously, and the information gathered helps to drive continuous improvement.

The recommendations of the benchmarking review of process and policy, carried out in collaboration with the Protect whistleblowing charity in 2022/23, have been implemented, to bring the Homes England policy and process up to date with industry best practice, improving our control environment.

Improvements to Homes England’s whistleblowing arrangements in 2024/25 included the launch of a new independent whistleblowing hotline and the launch of a new speak-up intranet page that brings together incident reporting processes under a single umbrella.

Additionally, an internal audit report conducted during the financial year highlighted several additional improvements that should be made e.g. training for staff, which have been accepted and have been, or will be implemented.

There was one disclosure raised via the whistleblowing process in 2024/25. This did not meet the classification of a whistleblowing disclosure but is currently being investigated under other processes.

Additionally, during the year a whistleblowing case relating to Homes England was raised with the NAO who have made enquiries with the relevant team in the Agency. At the time of publication of this report, this enquiry was still ongoing.

There were 4 qualifying whistleblowing disclosures reported in the prior financial year, 2023/24.

Conclusion

I have received appropriate assurance from senior management, our governance structures and from reporting and assurance provided to me through the 3 lines of defence. Other than already disclosed within this statement I am satisfied that the Agency has complied appropriately with all governance requirements. We are committed to constantly striving for the best public service and ensuring that our systems, process and people adapt to ensure our Agency can fully contribute to the government’s ambitions for housing and regeneration.

3.2 Remuneration and Staff Report

This section details remuneration and staff expenses and policies.

Nominations and Remuneration Committee

The Nominations and Remuneration Committee (NRC) has the following responsibilities:

• Advise the Board on the remuneration of the Executive Directors and the Chief Executive, and any related matters.

• Recommend the appointment or dismissal of the Chief Executive to the Board.

• Set and agree annual performance objectives of the Chief Executive, subject to Ministry of Housing, Communities and Local Government (MHCLG) approval.

• Consider and approve the incentive structure, including any bonus payment, for the Chief Executive and other senior officers on an annual basis, subject to MHCLG approval.

• Keep under review the leadership needs of the organisation, both executive and non-executive skills and knowledge. To recommend systems of succession planning to support the continued ability of the organisation to deliver the outcomes in the corporate strategy and monitor their implementation.

• To monitor the Agency’s overall staffing situation against the organisational structure approved by the Board and to approve any changes having regard to the resource budget agreed by MHCLG and any headcount directions laid down by MHCLG.

• Consider and advise the Board on broader staffing issues, such as recruitment and retention, overall pay levels, grading structure, pension and performance awards, and any other staffing matters that are referred to the Committee by the Executive.

• Advise the Board in relation to the Equality, Diversity and Inclusion (EDI) strategy and oversee the implementation plan.

• Review and make recommendations to the Board in respect of the People and Culture strategy.

• Review the management information (MI) on the people pillar of the MI dashboard and advise the Board of any concerns alongside management’s reports.

Remuneration Policy

We determine remuneration levels in order to attract and retain the talent and skills with appropriate experience to meet our objectives. The performance of Homes England’s Executive Leadership Team (ELT) is measured through both financial and non-financial indicators. In line with our approach to building brilliant performance, employees agree annual performance objectives which are reviewed regularly throughout the year and provide the basis for a formal annual appraisal which is linked to the payment of performance bonuses.

ELT and employees are entitled to a contribution by Homes England to a defined benefit pension scheme.

Homes England implements an annual pay remit which is approved by the Secretary of State as part of the civil service pay remit and Senior Civil Service guidance processes.

Employment Contracts

The ELT have contracts of employment with either 3 or 6-month notice periods (dependent on the job role) that do not contain any pre- determined compensation on termination of office. The exceptions to this are Alison Crofton, who is a permanent Homes England employee, seconded into post and Marcus Ralling, who is contracted through an employment agency.

Appointment of Board Members

Board members are appointed by the Secretary of State, previously this was for a fixed term of 3 years, new appointments in 2024/25 are for a fixed term of 4 years. Terms may be extended at the discretion of the Secretary of State. Board members’ time commitment was 3 days per month in 2023/24 and 2024/25. Board members who have additional chair responsibilities have additional time commitment.

Audited Remuneration Information

The following information provides details of the remuneration and pension interests of ELT in their capacity as employees of Homes England for the year to 31 March 2025 and Board members. Sections that are subject to audit are listed as such.

Board Members’ Emoluments (subject to audit)

	2024/25 £’000	2023/24 £’000
Chair
Peter Freeman CBE[footnote 1]	95	95
Board members
Stephen Bell (to 30 November 2024)[footnote 2]	28	42
Duncan Sutherland (to 13 December 2024)[footnote 3]	18	25
Vanessa Murden (to 30 June 2023)[footnote 4]	-	8
Sadie Morgan OBE[footnote 5]	29	29
Mark Rennison (to 31 July 2024)[footnote 6]	14	42
Pat Ritchie CBE[footnote 7]	36	25
Lesley-Ann Nash[footnote 8]	29	29
Mark Henderson[footnote 9]	29	29
Lord Austin of Dudley (to 23 February 2025)[footnote 10]	23	25
Sir Oliver Letwin (from 17 May 2024)[footnote 11]	22	-
Peter Vernon (from 17 May 2024)[footnote 12]	27	-
Ros Kerslake CBE (from 17 May 2024)[footnote 13]	22	-
David Cutter (from 17 May 2024)[footnote 14]	29	-
Abi Brown OBE (from 17 May 2024)[footnote 15]	22	-
Emma Fraser	-	-
Melanie Montanari[footnote 16]	-	-

Chief Executive’s Emoluments (subject to audit)

Single total figure of remuneration

		Salary received in year (£’000)		Recovery of amount paid (£’000)		Bonus payments (£’000)*		Benefits in kind (to nearest £100)		Pension benefits (£’000)**		Total (£’000)
	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24
Peter Denton, Chief Executive Officer (to 9 January 2025)[footnote 17]	345-350	295-300	nil	nil	nil	nil	nil	nil	nil	nil	345-350	295-300
Eamonn Boylan, Interim Chief Executive Officer (from 13 January 2025)[footnote 18]	65-70	n/a	nil	nil	nil	n/a	nil	n/a	nil	n/a	65-70	n/a

Executive Leadership Team Emoluments (subject to audit)

Single total figure of remuneration

		Salary received in year (£’000)		Recovery of amount paid (£’000)		Bonus payments (£’000)*		Benefits in kind (to nearest £100)		Pension benefits (£’000)**		Total (£’000)
	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24
Harry Swales, Chief Investment Officer (to 10 September 2023)	n/a	85-90	nil	nil	n/a	nil	n/a	nil	n/a	nil	n/a	85-90
David Bridges, Interim Chief Investment Officer (to 22 February 2024)	n/a	75-80	nil	nil	n/a	nil	n/a	nil	n/a	12	n/a	90-95
Marcus Ralling, Interim Chief Investment Officer (from 5 February 2024)[footnote 19]	230-235	35-40	nil	nil	nil	nil	nil	nil	nil	nil	230-235	35-40
Barry Cummins, Interim Chief Development Officer (to 13 October 2023)	n/a	85-90	nil	nil	n/a	nil	n/a	nil	n/a	2	n/a	85-90
Alison Crofton, Interim Chief Property Officer (from 27 October 2023)[footnote 20]	195-200	60-65	nil	nil	nil	nil	nil	nil	28	nil	225-230	60-65
Lynda McMullan, Chief Finance Officer (to 12 April 2024)[footnote 21]	5-10	190-195	nil	nil	nil	nil	nil	nil	351	33	355-360	225-230

Executive Leadership Team Emoluments (subject to audit)

Single total figure of remuneration

		Salary received in year (£’000)		Recovery of amount paid (£’000)		Bonus payments (£’000)*		Benefits in kind (to nearest £100)		Pension benefits (£’000)**		Total (£’000)
	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24	2024/25	2023/24
Mike Palin, Executive Director of Markets, Partners and Places (to 31 January 2025)[footnote 22]	165-170	195-200	(0-5)	nil	nil	5-10	nil	nil	28	33	190-195	240-245
Adrian Tucker, Chief Information and Digital Officer (to 30 June 2024)[footnote 23]	65-70	205-210	nil	nil	nil	nil	nil	nil	6	35	70-75	240-245
Kirsty Shaw, Chief Operating Officer	210-215	195-200	nil	nil	20-25	10-15	nil	nil	39	35	270-275	240-245
Ian Workman, Chief Customer Officer	215-220	200-205	nil	nil	15-20	5-10	nil	nil	39	36	270-275	240-245
Richard Collins, Chief Risk Officer (to 5 September 2024)[footnote 24]	80-85	45-50	nil	nil	nil	nil	nil	nil	14	9	90-95	55-60

*Bonuses disclosed relate to amounts paid during the year but relate to performance in 2023/24.
**The pension benefits figure is an actuarially assessed calculation. It attempts to reflect the benefits earned by the employee during the year from the scheme and is impacted by salary fluctuations and length of service.

Salary

Basic salaries are determined by considering the responsibilities of the role, each individual’s experience and market trends within scope of the evaluated grade for the role. Salary includes base remuneration and, in exceptional circumstances, overtime. It may also include a London weighting allowance, temporary or additional responsibility allowance or a market pay supplement if applicable.

The Secretary of State determines the Board members’ emoluments.

Performance Related Pay

The Agency complies with the direction from the Secretary of State on eligibility of a performance related bonus. Permanent members of ELT benefit from a performance related pay scheme. Any bonuses are determined with reference to performance against objectives, agreed by the Nominations and Remuneration Committee. The Committee reviews performance against targets and approves any proposed bonus payment for ELT. The performance year runs from April to March. The bonus cannot exceed 10% of salary and is the only element of pay that is performance related.

The Chairman is not eligible for performance related payments or other taxable benefits.

Benefits in Kind

The monetary value of benefits in kind covers any benefits provided by the employer and treated by HM Revenue and Customs (HMRC) as a taxable emolument. ELT did not receive any benefits in kind in 2023/24 and 2024/25.

Pension Benefits (subject to audit)

Chief Executive and Accounting Officer

Peter Denton was appointed as the permanent Chief Executive on 1 August 2021. He was not a member of any of the Agency’s pension schemes. Eamonn Boylan was appointed as interim Chief Executive on 15 January 2025. He is not a member of any of the Agency’s pension schemes.

Executive Leadership Team

Pension details are disclosed for those individuals who were part of the ELT during the year and who were a member of one the Agency’s pension schemes.

	Accrued annual pension at 31 March 2025 (£’000)	Real increase in accrued annual pension (£’000)	Accrued lump sum at 31 March 2025 (£’000)	Real increase/ (decrease) in accrued lump sum (£’000)	CETV* 31 March 2025 (£’000)	CETV* 31 March 2024 Restated (£’000)	Real increase/ (decrease) in CETV* (£’000)
Alison Crofton	5-10	0-2.5	0	0	51	48	2
Lynda McMullan[footnote 25]	105-110	17.5-20	245-250	(15-17.5)	2,345	2,068	242
Mike Palin[footnote 26]	5-10	0-2.5	0	0	42	34	7
Adrian Tucker[footnote 27]	5-10	0-2.5	0	0	58	54	3
Kirsty Shaw	5-10	2.5-5	0	0	56	38	17
Ian Workman	5-10	2.5-5	0	0	55	36	18
Richard Collins[footnote 28]	0-5	0-2.5	0	0	15	6	9

*Cash Equivalent Transfer Value.

Members of ELT are eligible to participate in the Homes and Communities Agency Pension Scheme, which is a multi-employer defined benefit scheme. The Chairman is not entitled to be a member of any of the Agency’s pension schemes. With the exception of Peter Denton, Eamonn Boylan and Marcus Ralling who are not members of the pension scheme, all other ELT members in post at 31 March 2025 are active members of the Homes and Communities Agency Pension Scheme.

CETV figures are calculated using the guidance on discount rates for calculating unfunded public service pension contribution rates that was extant at 31 March 2025.

Accrued Pension at 31 March 2025

The accrued pension entitlement is the pension which would be paid annually on retirement, based upon pensionable service to 31 March 2025.

Cash Equivalent Transfer Value (CETV) at 31 March 2025

The transfer values are the actuarially assessed capitalised value of pension scheme benefits. It is an amount payable by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The figures shown relate to benefits that the individual has accrued as a consequence of their total membership of the pension scheme and not just the service in a senior capacity to which disclosure applies.

The real increase in CETV reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Termination Payments (subject to audit)

Termination payments to ELT in 2024/25 were £nil (2023/24: £nil).

Staff Costs (subject to audit)

Staff costs	2024/25 (£’000)	2023/24 (£’000)
Permanent staff employed directly by the Agency
Salaries and wages	85,961	79,472
Social security costs	10,096	8,984
Employer pension contributions	16,494	20,416
Other pension related	(2,309)	761
Sub total	110,242	109,633
Temporary staff	10,930	14,265
Seconded staff	410	249
Less staff costs capitalised: Land and Property	(11,337)	(12,104)
Less staff costs transferred to programme costs	(21,722)	(11,035)
Total net costs	88,523	101,008

There were £nil redundancy costs during 2024/25 (2023/23 £293,000). An analysis of exit packages is shown under the heading Exit Packages, later in this Remuneration and Staff Report.

Staff Composition (subject to audit)

The average number of staff employed by the Agency (full time equivalents) over the course of the year is as follows:

	2024/25 Number	2023/24 Number
Permanent UK staff	1,332	1,259
Fixed term UK staff	78	89
Temporary staff	95	142
Board members	12	9
Seconded staff	4	3
	1,521	1,502

In 2024/25 the Agency took steps to reduce the number of temporary staff, instead, utilising more cost-effective directly employed fixed term or permanent appointments as appropriate.

The number of staff (full time equivalents) by salary pay band, using an average for the year, is as follows:

	2024/25 Number	2023/24 Number
£0 - £25,000	17	13
£25,001 - £50,000	497	532
£50,001 - £75,000	687	643
£75,001 - £100,000	214	203
£100,001 - £125,000	55	64
£125,001 - £150,000	35	30
£150,001 - £175,000	7	8
£175,001 - £200,000	3	3
£200,001 - £225,000	4	4
£225,001 - £250,000	1	0
£250,001 - £275,000	0	1
£275,001 - £300,000	0	1
£300,000 - £325,000	1	-
	1,521	1,502

Gender Analysis

The gender of Board members, ELT and other employees can be analysed as follows:

	2024/25 Number	2023/24 Number
Board members – Male	7	6
Board members – Female	5	3
Board members	12	9
ELT – Male	3	6
ELT – Female	2	2
ELT	5	8
Other employees – Male	740	729
Other employees – Female	764	756
Other employees	1,504	1,485
	1,521	1,502

The HMRC definition of gender has been used for this analysis so that it is aligned with our Gender Pay Gap report. This requires us to categorise our colleagues as male and female.

At Homes England, we recognise that gender identity is broader than simply male and female, and we know that some of our colleagues do not identify with either category. Whilst we must report in this way, we value, welcome, and celebrate colleagues of all gender identities at Homes England, and are looking at ways in which the way we report on gender in the future can be improved.

We are proud to report our lowest gender pay gap since we started reporting in 2017. The mean gender pay gap has decreased to 10.83% and the median pay gap to 7.30%, reflecting a 1.69% and 3.20% reduction, respectively from March 2023 and a decrease of 7.57% mean and 12.30% median since March 2017. This progress confirms that we are going in the right direction and we know that we have to sustain our efforts to continue reducing the gap.

Last year we committed to reporting our ethnicity pay gap. This year the ethnicity mean pay gap is 14.80% and our median pay gap is 19.04%. This represents a small increase of 0.08% from 14.72% mean pay gap and an increase of 0.28% from 18.76% median pay gap in March 2023.

While there is no statutory duty to analyse or report ethnicity pay, the government published employer guidance and reporting of ethnicity pay has been conducted using this guidance. The guidance recommends a minimum of 50 colleagues in any declared ethnic group to ensure statistical robustness and avoid possible identification of individual colleagues. Due to many of our colleagues identifying in ethnic groups of less than 50 we have chosen to report our ethnicity pay gap using only two groups, these being white and non-white ethnic minority. The ethnicity pay gap is therefore reported as the difference between white colleagues and non- white ethnic minority colleagues.

Our full gender and ethnicity pay gap report contains a more detailed analysis on the reasons that contribute to our gap. We also set out our commitments on closing the gaps further.

Fair Pay Disclosures (subject to audit)

The table below shows the percentage change in salary and allowances and performance pay and bonuses payable of the highest paid director and the workforce of Homes England.

2024/25	Salary and allowances % change	Performance pay and bonus % change
Highest paid director	16.8%	0%
Average pay of workforce	4.1%	10.1%

The 16.8% change in salary and allowances of highest paid director is due to a payment in lieu of notice (£105,000 – £110,000) which meant that equivalent to one month and nine days contractual payment otherwise due in 2025/26 was paid in the 2024/25 year. Excluding this payment the salary and allowances percentage change is 5%.

The 10.1% change in average performance pay and bonuses from £194 (2023/24) to £214 (2024/25) is as a result of the performance bonuses paid to ELT in 2024/25.

Homes England is required to disclose the relationship between the remuneration of its highest-paid director and the lower quartile, median and upper quartile remuneration of its workforce.

The table below compares the total pay and benefits for the highest paid director with that of the workforce who are paid at the 25th percentile (lower quartile), 50th percentile (median) and 75th percentile (upper quartile).

	25th percentile pay ratio	Median pay ratio	75th percentile pay ratio
2024/25	8.1:1	5.5:1	4.7:1
2023/24	7.3:1	5.0:1	4.2:1

The change in ratio in comparison to the previous year is due to a payment in lieu of notice of £105,000 – £110,000 being paid to the highest paid director in 2024/25. Excluding this payment the 25th percentile, median and 75th percentile pay ratio are 7.3%, 5% and 4.2% respectively, which is comparable to 2023/24.

The ratios excluding the payment in lieu of notice are consistent with our pay policies, obligations under the civil service pay remit and overall approach to reward which seeks to balance affordability, competitiveness and fairness.

The table below sets out the salary and total pay and benefits (excluding pensions) of the workforce for the 3 identified percentile points. This excludes the highest paid director.

	25th percentile	Median	75th percentile
Salary	£43,060	£62,908	£73,854
Total pay and benefits	£43,060	£63,088	£74,034

Total remuneration includes salary, additional responsibility allowances, market pay supplements, non-consolidated performance-related pay and other taxable benefits. It does not include severance payments, employer pension contributions and the cash equivalent transfer value of pensions.

The full year equivalent banded remuneration of the highest-paid director in Homes England in the financial year 2024/25, was Peter Denton, £310,000-£315,000 (2023/24: Peter Denton, £295,000-£300,000). This was 5.5 times (2023/24: 5.0 times) the median remuneration of the workforce, which was £63,088, (2023/24: £59,694). The increase in the ratio is explained above.

In 2024/25, one (2023/24: one) member of the workforce had annualised remuneration in excess of the highest paid director. For part of 2024/25 and 2023/24 the Agency procured specialist regeneration expertise on a short-term, part- time basis with a day rate which, if annualised, results in remuneration in excess of the highest paid director. However this advisory role is not a full time, annual position at the Agency.

Annualised remuneration ranged from £15,000 - £20,000 up to £310,000 - £315,000 (2023/24: £20,000 - £25,000 to £310,000 -£315,000).

As an arm’s-length body within scope of the civil service pay remit, for 2024/25 the Agency applied an average pay award of 5% for our delegated grade equivalents.

We also applied an average 5% pay award for senior colleagues, in roles equivalent to Senior Civil Servants (SCS), in alignment with the SCS pay guidance.

Exit Packages (subject to audit)

Redundancy and other departure costs have been determined in accordance with a voluntary redundancy scheme approved by MHCLG. Exit costs are accounted for in full when the departure has been approved and terms agreed.

Voluntary exit costs accounted for in the year can be analysed as follows:

	2024/25 Departures agreed Number	2023/24 Departures agreed Number
£0 - £10,000	-	-
£10,001 - £25,000	-	1
£25,001 - £50,000	-	3
£50,001 - £100,000	-	1
£100,001 - £150,000	-	1
Total number of exit packages	-	6
Total cost of exit packages (£’000)	-	293

The exit packages in 2023/24 relate to the closure of the Help to Buy scheme to new customers. Where possible, employees were offered other roles within the Agency.

Loans to Employees

The Agency has provided travel season ticket loans, cycle scheme loans and home charge point loans to employees during the year. The total amount outstanding in respect of these at 31 March 2025 was £66,789. There were no other loans to employees.

Staff Turnover Percentage

Staff turnover for 2024/25 was 9.87% (2023/24: 10.17%). This can be split between voluntary staff turnover (where staff have left the Agency for a role elsewhere or have retired) and involuntary staff turnover (where staff have left the Agency due to the end of a contractual period or dismissal). Voluntary staff turnover was 7.56% (2023/24: 7.54%). Involuntary staff turnover was 2.31% (2023/24: 2.64%). The Agency collects data to understand staff turnover through exit interviews which are offered to departing staff.

Expenditure on Consultancy

During the year the Agency incurred expenditure (on a cash basis) of £5,858,672 on consultancy in accordance with the definition of the Government Financial Reporting Manual (FReM) (2023/24: £9,328,805). This was a decrease of £3.47m (37.2%) compared to the previous year with reductions across all subcategories except for organisation and change management. 2023/24 has been a particularly high year with regards to consultancy spend and the reduction this year was in response to budget pressures and change projects moving into delivery stages rather than consultancy. With regards to the subcategory organisation and change management the majority of this spend relates to Organisational Blueprint (£3.45m).

Consultancy type	2024/25	2023/24
Property and Construction Consultancy	-	£2,531,544
Finance Consultancy	£1,653,672	£3,585,354
Organisation and Change Management Consultancy	£4,205,000	£2,524,688
Information Technology/ Systems Consultancy	-	£89,232
Specialist Contractors	-	£597,987
	£5,858,672	£9,328,805

The FReM definition of consultancy can be found in Annex 4 at www.gov.uk/government/publications/government-financial-reporting-manual-2024-25

Apprenticeship Levy

During the year the Agency incurred expenditure of £415,737 on contributions to the apprenticeship levy to support apprenticeship training and assessment for apprentices (2023/24: £419,000). The Agency makes use of this scheme by employing apprentices across teams, creating opportunities for apprentices to forge a career path within Homes England. Apprentices gain real ‘on the job’ experience and are supported through professional qualifications. During the year, the Agency claimed £381,955 (2023/24: £386,377) from the levy to support apprenticeships.

Off-payroll Arrangements

In accordance with the requirements of the FReM, the Agency is required to publish details of their highly paid and senior off-payroll engagements. The Agency uses off-payroll arrangements for specialist or technical contractors and consultants to address urgent scarce skills gaps.

Temporary off-payroll worker engagements at 31 March 2025, that were paid at least £245 per day	2024/25 Number
Number of existing engagements as at 31 March 2025	93
of which:
have existed for less than one year at time of reporting	60
have existed for between one and two years at time of reporting	18
have existed for between two and three years at time of reporting	13
have existed for between three and four years at time of reporting	1
have existed for four years or more at time of reporting	1

All temporary off-payroll workers engaged at any point during the year ended 31 March 2025, that were paid at least £245 per day	2024/25 Number
Number of off-payroll workers engaged during the year ended 31 March 2025	170
of which:
not subject to off-payroll legislation	160
subject to off-payroll legislation and determined as in scope of IR35	-
subject to off-payroll legislation and determined as out-of-scope of IR35	10
engagements reassessed for compliance or assurance purposes during the year	1
engagements that saw a change to IR35 status following review	-

On 6 April 2017, HMRC introduced new IR35 legislation which required public sector bodies, where they engage off-payroll workers, to ensure they correctly assess their employment status and apply the correct tax treatment.

During an internal review of off-payroll engagements in 2021/22, it became evident there were a small number of cases where a status determination statement was not issued to the contractor, or the contractor had been incorrectly determined as out-of-scope of IR35. This led to a further, extensive internal review of off-payroll engagements which included retesting the contractors against HMRC’s CEST tool.

In May 2022, Homes England provided a voluntary disclosure to HMRC, including an estimated liability for missing tax, national insurance and apprenticeship levy plus interest for years 2017/18 to 2021/22 of £1.1 million. This amount was recognised in the 2021/22 financial statements. Mandatory procedures have been in place from April 2022 to prevent recurrence, alongside a programme of training and awareness.

HMRC have concluded the voluntary disclosure on status risk. Following the update to legislation in 2024, HMRC are reviewing whether there is any offset payment due back to Homes England in respect of the £1.1m paid to HMRC and recognised in the 2021/22 financial statements.

Off-payroll engagements of Board members, and/or, senior officials with significant financial responsibility, between 1 April 2024 and 31 March 2025	2024/25 Number
Number of off-payroll engagements of Board members, and/or senior officials with significant financial responsibility during the financial year	1
Total number of individuals both on and off-payroll who have been deemed ‘Board members and/or senior officials with significant financial responsibility’, during the financial year	24

Marcus Ralling is off-payroll and considered to have significant financial responsibility. Marcus is employed on an interim basis whilst permanent recruitment takes place. Details of Marcus’ remuneration, start date and position held is included within the ELT emoluments table above.

At 31 March 2025 Marcus’ tenure is approaching 14 months and approval for this extension has been received via MHCLG.

Employee Matters

People and Culture Strategy

We launched our People and Culture Strategy in 2023 with the aim of providing greater alignment and structure around the aims and purpose of the Agency, with a focus on establishing Homes England as a place for talented people to come to progress their careers. The strategy articulates three areas of strategic focus aligned with our purpose of: Providing people services that facilitate a brilliant place to work. These three areas are:

• Talent Attraction and Growth

• Total Reward and Insight

• Excellence Everyday

Underpinning these is our foundation of everything being built and delivered in the spirit of enhancing Colleague Inclusion, Trust, Pride and Purpose.

These themes have been developed into a detailed people and culture delivery plan for the period 2023 to 2026. We have now completed year 2 of delivery against the plan.

Equality and Diversity in Employment and Occupation

In July 2020, we launched our first Equality, Diversity and Inclusion (EDI) strategy, outlining our objectives through to 2024. This strategy expanded our focus beyond internal practices to include the partners and industries we work with, aiming to drive systemic organisational and cultural change while positively impacting both the industry and communities we serve.

Our 2020 to 2024 objectives were:

1. Create a more inclusive colleague experience.

2. Work together to build an inclusive culture.

3. Demonstrate leadership commitment and action.

4. Partner with suppliers to foster a more inclusive industry.

5. Deliver homes for the communities we serve.

Drawing from our experiences over the four years, we refocused our strategy to highlight clear priorities with measurable actions.

For 2024/25, we shifted our focus towards strengthening internal development and culture, ensuring we are well-positioned to make a greater impact in the future. Our 2024/25 objectives are:

1. Leadership commitment and action.

2. Colleague experience: Building a Brilliant Place to Work.

Our priority areas include:

• Improving gender representation, opportunities, and pay.

• Enhancing ethnicity representation, opportunities, and pay.

• Strengthening our EDI culture.

• Supporting disability and carers, improving our work environment.

Our EDI Annual Report 2024/25 (second edition) outlines our approach to EDI as an Agency, rooted in our values and commitment to fostering an inclusive culture. It sets out our vision and strategy, highlighting the progress made over the past year, including the fantastic contributions of our colleague networks. The report also presents key insights from our data, covering representation across the Agency and senior leadership, as well as pay gap reporting. Additionally, it reflects on feedback from our 2025 Let’s Talk survey, providing a deeper understanding of our people’s experiences. Looking ahead to 2025/26, we outline our future plans to build on this progress and continue making meaningful change.

The EDI Action plan 2025/26 sets out the specific tasks and commitments different business areas will deliver over the next year to drive progress against our two main EDI objectives: Leadership Commitment and Action and Colleague Experience: Building a Brilliant Place to Work. The plan is structured around our key priority areas, ensuring a clear, focused approach to improving representation, opportunities, and inclusion across the Agency. It provides a roadmap for accountability, outlining the actions needed to create meaningful and measurable change.

We have made positive progress in many areas but also recognise that we have much more to do to fulfill our own ambitions.

Key achievements include:

• We measured and shared our ethnic pay gap for the first time in 2023.

• In collaboration with our networks, we have launched a new workplace adjustment passport for disabled colleagues.

• We have developed new domestic abuse guidance to support colleagues who may be experiencing or supporting those experiencing domestic abuse.

• We have developed and launched our new values and associated behaviour framework to further embed inclusion.

• We have included a distinct EDI Key Performance Indicator (KPI) in our strategic objectives, further supported by a number of stretching EDI KPI’s in our People and Culture strategy.

• As part of our new deliver partner dynamic purchasing system, we have introduced more robust criteria which our supply chain must meet.

• We have an inclusion calendar to promote EDI by highlighting key dates, events, and celebrations, encouraging awareness, and fostering a more inclusive environment for all.

• There is a range of development and information sources to better understand legal implications and responsibilities of equality related issues.

• Our colleague networks assist in the review of organisational policies and procedures to ensure that they are fair and promote equality and inclusion.

• We increased our graduate programme diversity.

• Of the 60 individuals enrolled in the data academy 45% of these apprentices are female or identify as female, a figure that more than doubles the national average for women in data roles across the UK and a further 4% identify as neither male or female.

• We endorsed the use of the Hidden Disability Sunflower Lanyard Scheme across the Agency.

We have developed our EDI data as part of the Strategic Planning framework. The data enables us to benchmark, measure and report progress to further improve transparency and accountability.

Staff Policy Regarding Disabled Persons

We remain committed to ensuring equality of opportunity for all disabled people who work or apply to work for us. We’re proud to ensure that our disability confident scheme provides avenues where individuals with disabilities are able, where they meet the minimum criteria for the role, to secure a guaranteed interview. This is an integral part of enabling the Agency to secure a more diverse pool of candidates.

On all applications we ask if any adjustments are needed to enable any interview or selection process and monitor applicants who indicate they have a disability to ensure they are aware of the disability confident scheme and support we can offer.

Where we are made aware of colleagues with disabilities or long-term health conditions, we have a variety of tools and support available. We work with colleagues, line managers, Human Resources and Occupational Health to identify reasonable adjustments to the workplace and working arrangements specific to the individual’s need to support disabled colleagues in the workplace. In addition to this, we have numerous colleague-led networks that provide feedback, help monitor the effectiveness of our support and help us with our thinking as we develop policy, process and our strategies.

There is a workplace adjustment and carers passport available to support colleagues with disabilities or caring responsibilities.

Sickness Absence

During the year 1.83% (2023/24: 2.1%) of working days were lost to sickness absence. According to the Office of National Statistics (ONS), in the UK labour market for calendar year 2022, 2.6% of days were lost due to sickness absence, split 2.3% private sector and 3.6% public sector. The ONS has not released any sickness absence information since 2022.

Health and Safety

Homes England health and safety performance has remained strong through 2024/25 and its key achievements are set out below.

For the 7th year running our accident incident rate (AIR) for reportable injuries to our employees under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR) was zero per 100,000 employees, and the AIR all for all types of injuries involving our employees was calculated at 392 per 100,000 employees which is below the latest published national Labour Force Survey AIR for 2023/24 at 1,890 per 100,000 employees.

Homes England sets annual corporate health and safety targets for a range of activities such as training, risk assessments and safety audits. The Board and the ELT are regularly updated on the Agency’s health and safety performance and its progress towards meeting targets. In 2024/25, 10 targets were agreed by ELT and the Board, and all have been met or exceeded.

During the year, the health and safety team reviewed and transferred its suite of online health and safety training courses to a new online hosting platform. The Agency continued to safely onboard complex sites with significant health and safety risks minimising risk of incidents upon acquisition.

Employee Engagement

In 2024 we conducted our 2024 Lets Talk main survey. The response rate was 86% which is within the ideal category according to our engagement surveys third party Hive, and is the best response we have received in an engagement survey since they commenced in 2022.

The results show an improvement in colleague engagement with an increase from the 2023 survey across all of the key measures of Average Score, Engagement Index and e-NPS.

Seven categories of engagement covered in the #Let’s Talk 2023 main survey

Motivating managers
Health and wellbeing
Meaningful work
Irresistible workplace
Realising potential
Additional insight
Leadership and inspiration

Pension Reform

In September 2022, Homes England commenced a formal consultation process with a view to reforming the final salary tier of the Homes and Communities Pension Scheme, impacting c. 630 colleagues. The consultation was supported by a significant communication and engagement programme, providing affected colleagues with detailed proposals, personal impact statements and access to modelling tools, as well as a dedicated website. In addition to explanatory sessions, both on-line and in person, supported by pension experts and Homes England senior leaders, affected colleagues were given access to a helpline operated by Hymans Robertson, one of the UK’s leading pension consultancies.

Questions and issues raised were gathered and discussed in detail with trade union and scheme representatives including consideration of counter proposals that went on to form the final business cases to Secretary of State and HM Treasury. Both consultation and the subsequent business cases were successful, and the reforms were enacted from 1 April 2024.

Grow our Own

In 2024/25 we have continued our commitment to grow our internal talent and capability to help deliver our ambitious strategy. As a government agency we are keen to provide development opportunities for all colleagues to grow.

We continue to fully utilise our apprenticeship levy. Apprenticeships are aligned to areas of skills shortage and future capability needs. Last year we introduced a new data academy to drive innovation and enhance analytical capabilities within the Agency. Of colleagues who participated in the academy 31 passed with distinction and 10 are still on programme, with a further cohort due to start in June 2025. 45% of our data academy apprentices are female or identify as female, a figure that more than doubles the national average for women in data roles across the UK.

Through our graduate programme, we are investing in ‘growing our own’ skills and capabilities, focusing on identified skills shortage areas such as property, cyber security and software development. The programme attracted 6,780 applications across 14 professions.

Trade Union Relationships

Homes England formally recognises three trade unions – Unite, PCS and Unison – with whom the organisation consult over pay, policies and procedures, working conditions and related issues. Regular meetings take place between management and elected union representatives, called Joint Negotiation and Consultation Committee meetings, on a cycle of approximately six weeks.

As a public sector body with more than 49 FTE employees, Homes England is required to make a number of disclosures regarding trade union facility time. This information is set out in the following tables:

Relevant union officials	2024/25
Number of employees who were relevant union officials during the relevant period	13

Percentage of time spent on facility time	2024/25 Number
0%	0
1 - 50%	13
51% - 99%	0
100%	0

Percentage of pay bill spent on facility time	2024/25
Total cost of facility time (£’000)	96
Total pay bill (£’000)	85,961
Percentage of the total pay bill spent on facility time, calculated as: (total cost of facility time ÷ total pay bill) x 100	0.11%

Paid trade union activities	2024/25
Percentage of paid facility time spent on paid trade union activities: (time spent on paid trade union activities ÷ total paid facility time) x 100	0%

3.3 Parliamentary Accountability and Audit Report

This section provides details of losses, special payments, fees and charges in the year, and the audit certificate.

Parliamentary Accountability Disclosures

Losses and Special Payments (subject to audit)

In accordance with the provisions of the Accounts Direction, the Agency has summarised all losses and special payments requiring disclosure, recognised during the course of the financial year, as follows:

		2024/25		2023/24
	Cases	£’000	Cases	£’000
Total of all losses and special payments	119	62,297	156	120,723
Cases over £300,000:
Loans written off or movement in fair value below initial cost, irregular payments, constructive losses and modification losses on loans	16	60,965	15	119,640

Under International Financial Reporting Standard 9: Financial Instruments (IFRS 9), the Agency is required to consider whether a financial asset investment meets the definitions of a basic lending arrangement in order to establish whether the investment should be measured at amortised cost or at fair value.

For assets which are measured at amortised cost, a write-off amount is recognised in the financial statements when it is considered that there is no realistic prospect of full recovery. There are also a number of loan investments which are managed operationally in line with the Agency’s loan management processes, however, from an accounting point of view are measured at Fair Value Through Profit or Loss (FVTPL). Where it has been assessed that there is no realistic prospect of full recovery for such loan investments, these have also been disclosed in this note. This is aligned with the Government Financial Reporting Manual requirement to disclose losses in this note for the attention of Parliament at the earliest point at which a loss is expected.

For assets measured at amortised cost, the Agency is required to consider the effect of discounting future cash flows (to reflect the present value of the anticipated recovery) to determine the required write-off allowance for accounting purposes. The losses recognised here include an element of this discounting effect, which will subsequently be unwound in future years as interest income on the impaired balance.

During 2024/25 there were 8 cases of loan losses recognised where the amount written off, or movement in fair value below initial cost for accounting purposes, was in excess of £300,000; 6 write-offs of loans measured at amortised cost, and 2 movements in fair value below initial cost of loans measured at FVTPL. There were also 3 modification adjustments on loans which exceeded £300,000. There was one irregular payment and 4 constructive losses. The following table details these losses:

Loans Measured at Amortised Cost

£’000	Comments
16,063	A development loan was provided under the Short Term Fund for the delivery of 183 homes. An increase in project costs led to a funding shortfall, resulting in the site being mothballed since May 2024. The sale of completed units on the site has also been protracted. In 2024/25 insolvency administrators were appointed by the directors as a result of liquidity and project viability issues. Accounting write-offs of £13.1 million were recognised in 2023/24. In 2024/25, the investment was fully written off, resulting in further accounting write-offs of £16.1 million being recognised. As at 31 March 2025, total losses recognised were £29.2 million.
2,174	Funding was provided under the Short Term Fund to provide 27 new homes on a brownfield site. Several issues, including site drainage, COVID-19 lockdowns, cladding issues and an increase in interest costs have affected the development which have resulted in an extended timeframe of delivery and an increase in costs. In addition, the pace of sales has been slower than initially expected. The borrower was placed into liquidation in May 2023 following the issue of a winding up petition by HMRC. The Agency has appointed a Law of Property Act (LPA) Receiver to deal with the site and a trade sale is now envisaged. These issues have resulted in full repayment of the Agency’s loan being at risk. Net accounting write-offs of £0.5 million were recognised in previous financial years. During 2024/25, further accounting write-offs of £2.2 million have been recognised. As at 31 March 2025, total losses recognised were £2.7 million.
1,287	Funding was provided under the Levelling Up Home Building Fund to support construction of a 4-storey block of flats. Work on the site has been stalled since May 2024. There have been several delays on the site to date, caused by issues with the quality of some work completed requiring rectification and a retaining wall being required on the site. These issues have also led to cost increases and the Operating Director has left the company. The remaining director has failed to provide an updated workout plan or refunding proposal. The Agency is taking steps to enforce the security so it can be sold at auction. The 5-unit development is part built and, as a result, there is also uncertainty over the market value of the site. There is a risk as to whether the Agency’s debt can be repaid, therefore a full accounting write-off of the existing exposure was made in 2024/25. As at 31 March 2025, total losses recognised were £1.3 million.
1,048	Funding was provided under the Short Term Home Building Fund to support the delivery of 44 properties on a former brownfield site. Project costs have increased because of remedial groundworks being required, a shortage of subcontractors and increased interest costs. Sales have been slower than anticipated and sales prices achieved have been below expectations, due to the nature of the configuration of the properties. These issues have impacted on project cash flows. In previous financial years, accounting write-offs of £1.9 million were recognised. In 2024/25 an additional accounting write-off of £1.1 million has been recognised. As at 31 March 2025, total losses recognised were £3 million.
949	The Agency provided funding under the Short Term Home Building Fund for a 48-unit development. Slow build progress and increased costs as a result of several issues, including material supply issues, delay due to identification of a gas main and weather, have led to several amendments to the loan facility. It is not expected that the Agency’s loan will be fully recoverable after all remaining security has been realised. As a result, an accounting impairment of £0.9 million has been recognised to reflect the potential estimated loss. As at 31 March 2025, total losses recognised were £0.9 million.
389	The Agency provided an infrastructure loan under the Long Term Home Building Fund to support development of 3,000 homes. A series of delays prior to work commencing on site impacted timelines for delivery, and contracted equity investment did not materialise to meet future funding requirements. A review was commissioned by the Agency which suggested the scheme was no longer viable, and the borrower has subsequently gone into liquidation. An LPA Receiver has been appointed by the Agency to investigate development opportunities. Losses of £19.8 million have been recognised in previous financial years. Additional accrued interest during 2024/25 has resulted in an additional accounting write-off of £0.4 million in 2024/25. As at 31 March 2025, total losses recognised were £20.2 million.

Loans Measured at FVTPL

£’000	Comments
26,981	Market Abuse Regulations preclude further commentary. A movement in fair value below cost of £27 million has been recognised in 2024/25. The equivalent total movements in fair value below cost expected against contractual amount due (principal and interest) were £69.8 million at 31 March 2025. As at 31 March 2025, total accounting movements in fair value below initial cost recognised were £60.7 million.
2,148*	The Agency provided funding under the Short Term Home Building Fund for 36 homes on a brownfield former industrial site. There have been issues with cost overruns, slippage of the build programme, missed sales milestones, and poor contractor performance. In addition, there is uncertainty around the value and timing of the sale of the remaining security held by the Agency. A partial impairment of the existing exposure was made in 2024/25 to reflect this material uncertainty. A movement in fair value below cost of £1 million has been recognised in 2024/25, as well as reversals of previous fair value uplifts of £1.2 million. As at 31 March 2025, total accounting movements in fair value below initial cost recognised were £1 million.

Irregular Payments

£’000	Comments
1,403	Detail is provided within the Risk Events and Near Misses Reporting section of the Governance Statement within the Accountability Report.

Constructive Losses

£’000	Comments
4,843**	Costs relating to the development of a loans system which, at the balance sheet date was not in use, with no current plans to complete. Adoption of a loans solution into the new end to end operating model is still under review as part of the Evolve Transformation Change Programme.
1,109**	Costs relating to the development of a document management system which, due to technological developments in this area, mean a more cost effective and efficient solution is now required.
360**	Costs relating to the development of a land disposal service which, due to an increase in the scope required, the new system was unable to deliver. Development of the existing software to support the increased scope was determined to be the preferred option.
324	The Agency entered into an agreement to acquire software licences for use on an investment project which was being taken forward under the Agency’s Evolve Transformation Change Programme. During 2024/25 the project was in the initial stages of development. Delays in the progression of the project has resulted in a payment which could not be avoided, even though the Agency was not able to make use of the licences in 2024/25.

*Includes reversal of previous fair value uplifts.
**Retrospective approval will be sought from HM Treasury.

Modification Losses

£’000	Comments
1,887	During 2024/25 interest margins were reduced on 20 investments following an improvement in credit risk. Under IFRS 9, where an interest margin is modified we are required to continue accruing interest at the original interest margin and immediately recognise any loss (reduction to carrying value of the loan) which has occurred as a result of the modification to the interest margin. The losses disclosed reflect the difference between the discounted revised (reduced) future cash flows using the original interest margin when compared to the carrying value of the loan prior to the modification. Of the 20 investments, 3 are individually greater than £300,000, totalling £1.9 million. The remaining 17 are all individually below £300,000 and total £0.8 million. There were also modification gains recognised of £0.6 million on 3 investments.
60,965	Total write-offs and movements in fair value below initial cost on loans, irregular payments, constructive losses and modification losses recognised on loans which exceed £300,000.

Included in the 2024/25 accounts are further write-offs of loans measured at amortised cost totalling £299,000, further movements in fair value below initial cost of loans measured at FVTPL of £6,000 and write-offs of receivables of £185,000, which individually are below the reporting threshold and therefore have not been included in the table above.

In addition to this, the 2024/25 accounts reflect the reversal of previously recognised accounting write-offs or reversals of previously recognised movements in fair value below initial cost, totalling £1.6 million during the period.

There was one special payment of £1,000.

The contractual amount due on loan investments for which amounts have been written off or impaired, and which are still subject to enforcement activity, was £496.1 million at 31 March 2025 (£373.1 million at 31 March 2024).

Regularity (subject to audit)

Other than disclosed above, during 2024/25, the Agency complied with the requirements of regularity as set out in Managing Public Money and HM Treasury (HMT) approval was obtained for all novel, contentious or repercussive transactions relating to 2024/25.

Fees and Charges (subject to audit)

Regulator of Social Housing

Homes England and the Regulator of Social Housing (RSH) are party to a service level agreement under which Homes England provides services to RSH. Services provided may include, but are not limited to, the provision of accommodation of facilities, the provision of staff time and expertise and the provision of technical resources. Service income charged to RSH during the year was £821,000.

Other Fees

Additionally, Homes England may, from time to time, charge a fee for services provided to other entities. Where applicable, services are charged at full cost and therefore result in no attributable surplus or deficit. During the year, Homes England provided legal and professional services to other parties totalling £267,000. This is included in other operating income.

Other fees include £100,000 charged to the Homes and Communities Agency Pension Scheme for the annual provision of accommodation, staff and professional services and £50,000 charged to the Department for Business and Trade for the provision of professional services in connection with the administration of three science parks.

Remote Contingent Liabilities (subject to audit)

Homes England is required to disclose each of its material remote contingent liabilities, and where practical, estimate the financial effect. Homes England does not have any material contingent liabilities other than those disclosed in the Financial Statements.

Functional Standards

Homes England is committed to embedding the Functionals Standards in all relevant activity across the Agency. Continuous assessment and improvement activity is ongoing and continues to build on the progress made last year.

The Accountability Report is signed on 14 July 2025

Eamonn Boylan
Chief Executive and Accounting Officer

The Certificate and Report of the Comptroller and Auditor General to the Houses of Parliament

Opinion on financial statements

I certify that I have audited the financial statements of the Homes and Communities Agency (Homes England) and its group for the year ended 31 March 2025 under the Housing and Regeneration Act 2008.

The financial statements comprise Homes England and its Group’s:

• Statement of Financial Position as at 31 March 2025;

• Statement of Comprehensive Net Expenditure, Statement of Cash Flows and Statement of Changes in Taxpayers’ Equity for the year then ended; and

• the related notes including the significant accounting policies.

The financial reporting framework that has been applied in the preparation of the Homes England and Group financial statements is applicable law and UK adopted international accounting standards.

In my opinion, the financial statements:

• give a true and fair view of the state of Homes England and its Group’s affairs as at 31 March 2025 and their Net expenditure for the year then ended; and

• have been properly prepared in accordance with the Housing and Regeneration Act 2008 and Secretary of State directions issued thereunder.

Opinion on regularity

In my opinion, in all material respects, the income and expenditure recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs UK), applicable law and Practice Note 10 Audit of Financial Statements and Regularity of Public Sector Bodies in the United Kingdom (2022). My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of my certificate.

Those standards require me and my staff to comply with the Financial Reporting Council’s Revised Ethical Standard 2024. I am independent of Homes England and its Group in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

In auditing the financial statements, I have concluded that Homes England and its Group’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Homes England and its Group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the Accounting Officer with respect to going concern are described in the relevant sections of this certificate.

The going concern basis of accounting for Homes England and its Group is adopted in consideration of the requirements set out in HM Treasury’s Government Financial Reporting Manual, which requires entities to adopt the going concern basis of accounting in the preparation of the financial statements where it is anticipated that the services which they provide will continue into the future.

Other information

The other information comprises information included in the Annual Report, but does not include the financial statements and my auditor’s certificate and report thereon. The Accounting Officer is responsible for the other information.

My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my certificate, I do not express any form of assurance conclusion thereon.

My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Opinion on other matters

In my opinion the part of the Remuneration and Staff Report to be audited has been properly prepared in accordance with Secretary of State directions issued under the Housing and Regeneration Act 2008.

In my opinion, based on the work undertaken in the course of the audit:

• the parts of the Accountability Report subject to audit have been properly prepared in accordance with Secretary of State directions made under the Housing and Regeneration Act 2008; and

• the information given in the Performance and Accountability Reports for the financial year for which the financial statements are prepared is consistent with the financial statements and is in accordance with the applicable legal requirements.

Matters on which I report by exception

In the light of the knowledge and understanding of Homes England and its Group and their environment obtained in the course of the audit, I have not identified material misstatements in the Performance and Accountability Reports.

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

• adequate accounting records have not been kept by Homes England and its Group or returns adequate for my audit have not been received from branches not visited by my staff; or

• I have not received all of the information and explanations I require for my audit; or

• the financial statements and the parts of the Accountability Report subject to audit are not in agreement with the accounting records and returns; or

• certain disclosures of remuneration specified by HM Treasury’s Government Financial Reporting Manual have not been made or parts of the Remuneration and Staff Report to be audited is not in agreement with the accounting records and returns; or

• the Governance Statement does not reflect compliance with HM Treasury’s guidance.

Responsibilities of the Board and Accounting Officer for the financial statements

As explained more fully in the Statement of Accounting Officer’s Responsibilities, the Accounting Officer is responsible for:

• maintaining proper accounting records;

• providing the C&AG with access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;

• providing the C&AG with additional information and explanations needed for his audit;

• providing the C&AG with unrestricted access to persons within Homes England and its Group from whom the auditor determines it necessary to obtain audit evidence;

• ensuring such internal controls are in place as deemed necessary to enable the preparation of financial statements to be free from material misstatement, whether due to fraud or error;

• preparing financial statements which give a true and fair view in accordance with Secretary of State directions issued under the Housing and Regeneration Act 2008;

• preparing the annual report, which includes the Remuneration and Staff Report, in accordance with Secretary of State directions issued under the Housing and Regeneration Act 2008; and

• assessing Homes England and its Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Accounting Officer anticipates that the services provided by Homes England and its Group will not continue to be provided in the future.

Auditor’s responsibilities for the audit of the financial statements

My responsibility is to audit, certify and report on the financial statements in accordance with the Housing and Regeneration Act 2008.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a certificate that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting non-compliance with laws and regulations including fraud

I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulations, including fraud. The extent to which my procedures are capable of detecting non- compliance with laws and regulations, including fraud is detailed below.

Identifying and assessing potential risks related to non-compliance with laws and regulations, including fraud

In identifying and assessing risks of material misstatement in respect of non-compliance with laws and regulations, including fraud, I:

• considered the nature of the sector, control environment and operational performance including the design of Homes England and its Group’s accounting policies.

• inquired of management, Homes England’s head of internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to Homes England and its Group’s policies and procedures on:

– identifying, evaluating and complying with laws and regulations;

– detecting and responding to the risks of fraud; and

– the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations including Homes England and its Group’s controls relating to Homes England’s compliance with the Housing and Regeneration Act 2008 and Managing Public Money;

• inquired of management, Homes England’s head of internal audit and those charged with governance whether:

– they were aware of any instances of non- compliance with laws and regulations;

– they had knowledge of any actual, suspected, or alleged fraud;

• discussed with the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, I considered the opportunities and incentives that may exist within Homes England and its Group for fraud and identified the greatest potential for fraud in the following areas: posting of unusual journals, complex transactions and bias in management estimates. In common with all audits under ISAs (UK), I am required to perform specific procedures to respond to the risk of management override.

I obtained an understanding of Homes England and it’s Group’s framework of authority and other legal and regulatory frameworks in which Homes England and Group operates. I focused on those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements or that had a fundamental effect on the operations of Homes England and its Group. The key laws and regulations I considered in this context included Housing Regeneration Act 2008, Managing Public Money, pensions legislation and tax legislation.

I considered specific risk assessment procedures relating to fraud, non-compliance with laws and regulations and regularity including: risk-based review of journals to identify those presenting a higher risk of fraud, informed by planning risk assessment; review of estimates presented within the accounts; analysis of individual income streams to assess the possibility of the risk of fraud in revenue recognition; and review of the control framework in place for significant grant streams.

Audit response to identified risk

To respond to the identified risks resulting from the above procedures:

• I reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having direct effect on the financial statements;

• I enquired of management, the Audit, Assurance and Enterprise Risk Committee and in-house legal counsel concerning actual and potential litigation and claims;

• I reviewed minutes of meetings of those charged with governance and the Board and internal audit reports;

• I addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements on estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; and

• I reviewed estimates in the accounts and challenged underlying assumptions and methodologies, and substantively tested grant expenditure streams, investments, loans and property transactions to address the risk of material irregularity.

• I communicated relevant identified laws and regulations and potential risks of fraud to all engagement team members including internal specialists and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of my responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc. org.uk/auditorsresponsibilities. This description forms part of my certificate.

Other auditor’s responsibilities

I am required to obtain sufficient appropriate audit evidence to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control I identify during my audit.

Report

I have no observations to make on these financial statements.

Gareth Davies
Comptroller and Auditor General

14 July 2025

National Audit Office
157-197 Buckingham Palace Road
Victoria, London, SW1W 9SP

1. Peter Freeman’s term was extended in September 2023 for 2 years, until 22 October 2025. Following his appointment as Chair of Cambridge Growth Company, Peter resigned from the Board on 30 April 2025. ↩

2. In addition to being a Board member, Stephen Bell was the Chair of the Audit, Assurance and Enterprise Risk Committee. He was also the Agency’s representative on MHCLG’s Audit, Risk and Assurance Committee. Stephen’s term was extended in December 2023 for a period of eight months, commencing on 1 April 2024 and ending on 30 November 2024. ↩

3. Duncan Sutherland was reappointed in December 2021 for 3 years. His term ended on 13 December 2024. ↩

4. Vanessa Murden resigned from the Board on 30 June 2023. ↩

5. In addition to being a Board member, Sadie Morgan is Chair of the Cross Cutting Committee. ↩

6. In addition to being a Board member, Mark Rennison was the Chair of the Investment Committee, the Senior Independent Director and Chair of the Home Ownership Committee. Mark Rennison resigned from the Board on 31 July 2024. ↩

7. In addition to being a Board member, Pat Ritchie was appointed Deputy Chair on 1 August 2024. Full year equivalent emoluments for 2024/25 were £41,640. Pat Ritchies’s term was extended in February 2025 for 9 months, until 23 November 2025. Post year end, Pat Ritchie has been appointed as Interim Chair of the Board for a period of 18 months commencing on 1 May 2025. ↩

8. In addition to being a Board member, Lesley Ann Nash is Chair of the Nominations and Remuneration Committee. Lesley Ann Nash’s term was extended in February 2025 for 9 months, until 27 November 2025. ↩

9. In addition to being a Board member, Mark Henderson is Chair of the Change Committee. Mark Henderson’s term was extended in February 2025 for 9 months, until 23 November 2025. ↩

10. Lord Austin of Dudley’s term ended on 23 February 2025. ↩

11. Oliver Letwin was appointed to the Board on 17 May 2024 for a period of 4 years. Full year equivalent emoluments for 2024/25 were £24,984. ↩

12. Peter Vernon was appointed to the Board on 17 May 2024 for a period of 4 years. From 1 August 2024 he was appointed Chair of the Investment Committee. Full year equivalent emoluments for 2024/25 were £32,618. ↩

13. Ros Kerslake was appointed to the Board on 17 May 2024 for a period of 4 years. Full year equivalent emoluments for 2024/25 were £24,984. ↩

14. David Cutter was appointed to the Board on 17 May 2024 for a period of 4 years. From 1 August 2024 he was also appointed as Chair of the Home Ownership Committee and from 1 December 2024 he was appointed as Chair of the Audit, Assurance and Enterprise Risk Committee. Full year equivalent emoluments for 2024/25 were £41,640. ↩

15. Abi Brown was appointed to the Board on 17 May 2024 for a period of 4 years. Full year equivalent emoluments for 2024/25 were £24,984. ↩

16. Emma Fraser and Melanie Montanari job share a role as Director at MHCLG and are MHCLG’s Shareholder Representative. They do not receive a salary for their duties with Homes England. ↩

17. Remuneration received during the year includes a payment in lieu of notice of £105,000-£110,000. The notice period forgone covered 4 months from the date of departure which meant that the equivalent to one month and nine days contractual payment otherwise due in 2025/26 was paid in the 2024/25 financial year. Full year equivalent emoluments for 2024/25 were £310,000-£315,000. ↩

18. Eamonn Boylan was appointed interim Chief Executive Officer on 13 January 2025. Full year equivalent emoluments for 2024/25 were £300,000-£305,000. ↩

19. Remuneration received during the year is based on the day rate multiplied by the number of days worked. Full year equivalent emoluments for 2023/24 were £215,000-£220,000 based on the day rate multiplied by 220 days. ↩

20. Remuneration received during 2024/25 included an arrears payment for the period 27 October 2023 to 31 March 2024 (£10,000-£15,000). Full year equivalent emoluments for 2024/25 were £180,000-£185,000 and for 2023/24 were £145,000-£150,000. ↩

21. Pension benefits include the value of benefits accrued from 1 April 2024 to 12 April 2024 and allows for the enhanced service credit received in line with scheme rules for ill health retirements. ↩

22. Remuneration received during 2024/25 included unused holiday entitlement (£5,000-£10,000) and recovery of a previous over payment (£0-£5,000) based on a recalculation of salary paid. Full year equivalent emoluments for 2024/25 were £190,000-£195,000 and for 2023/24 were £180,000-£185,000). ↩

23. Remuneration received during 2024/25 included unused holiday entitlement (£15,000-£20,000). Full year equivalent emoluments for 2024/25 were £205,000-£210,000. ↩

24. Full year equivalent emoluments for 2024/25 were £185,000-£190,000 and for 2023/24 were £180,000-£185,000. ↩

25. The 2023/24 figures have been restated to take account of the transfer in credits from another pension scheme received in March 2024. The 2023/24 accrued pension figure has been restated from £10,000-15000 to £80,000-85,000 and the CETV value has been restated from £291,000 to £2,068,000. Additionally, the 2024/25 figures include the enhanced service credits received in line with scheme rules for ill health retirements. ↩

26. Mike Palin left the Agency on 31 January 2025. Pension figures have been calculated to the date of departure. ↩

27. Adrian Tucker left the Agency on 30 June 2024. Pension figures have been calculated to the date of departure. ↩

28. Richard Collins left the Agency on 5 September 2024 and received a refund of contributions. The 2024/25 figure is the theoretical value of the accrued benefits at that date. ↩