2025-03-31-accounts

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED A company limited by guarantee and having no share capital

REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025

Charity Number: 1050098 Company Number: 00928520 Registered in England

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED (A company limited by guarantee and having no share capital)

REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025

CONTENTS	Page
Chairman’s review	1
Legal and administrative details	2 – 4
Report of the council	5 – 12
Independent auditors’ report	13 – 16
Statement of financial activities	17
Balance sheet	18
Statement of cash flows	19
Notes to the financial statements	20 – 33

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

CHAIRMAN’S REVIEW 2024/2025

Welcome to the annual report of the Hampstead Garden Suburb Trust — a year that has seen both continuity and change.

The continuity is in the Trust's day-to-day work. We have pursued our task of preserving the character and amenity of the Suburb with enthusiasm, protecting not only its architectural heritage but also ensuring it is a delightful place to live.

This goes far beyond handling planning applications. We maintain important open spaces, including Central Square and its recently resurfaced tennis courts. We manage the allotments that mean so much to many green-fingered residents and which are getting some extra investment this year. We have issued retrofit guidance to help residents improve the energy efficiency of their homes, available on our website.

We also make vital grants to local good causes, totalling nearly £30,000 in the year under review. Recipients include local schools, Proms at St Jude's, and Britain's Biggest Living Garden.

But we also have change. I am new to the chair's role, having taken the position last September. You can see my biography and those of the other trustees later in this report. Plus, we have a new chief executive, Will Hawkins, who was recruited after an in-depth recruitment process early in 2025. Will brings energy and a fresh perspective to the role. He also has extensive relevant experience from the Royal Institute of British Architects and elsewhere. You can meet him, senior staff members and our trustees at our AGM on 29 September.

With new faces, there is also an opportunity for some fresh thinking, and the Trust's operations and management are being extensively reviewed.

Among the changes is moving the Trust's IT systems to modern, standardised, cloud-based infrastructure to help our excellent staff team deliver more efficient service to residents. We are also introducing a new formal application process for tree removal, which will provide better protection for the trees that are an essential part of the Suburb's charm.

We are also improving our outreach to residents. We have exciting ideas for the disused land on the West side of Central Square, and we want to hear residents' views. We have also started an Instagram account @HGSTrust. Please follow it to learn more about the Trust's activities and the Suburb's architecture and history. We will also use it to publicise our annual Winter Lecture, which will be held later in the year.

The Trust continues to build financial resilience, ensuring we can continue performing our vital tasks if income sources dry up, temporarily or permanently. Like any organisation, we face rising costs, including the recent increase in National Insurance Contributions. However, we strive to keep the annual management charge paid by freeholders as low as possible. To clarify, the grants and other important community work highlighted earlier in this report are not funded by the management charge; they come from the Trust's internal resources.

Despite our tech upgrade, we are proud that we still offer a personalised service to residents. We welcome anyone thinking of making changes to their home to call and discuss their ideas at an early stage. In the year to March 31, we handled more than 200 applications. Although the vast majority are approved, we will not hesitate to refuse applications that fail to uphold the high design principles set in the Suburb's founding days. Talking to us early in the process can make this whole process much smoother and our architectural team made around 600 property visits last year to offer detailed guidance.

I want to thank my predecessor as Chair, Raymond Taylor, and our former Chief Executive, Simon Henderson, for their valuable contributions over many years. I would also like to thank Gren Manuel, who has been acting not only as Vice Chair but in many ways as a joint Chair. His input has been invaluable, particularly in relation to strategy and personnel. More broadly, I am grateful to my fellow trustees, our staff team, and — perhaps most of all — the residents who support and engage with the work of the Trust.

Richard Townley Chairman

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23-Jul-2025

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

LEGAL, ADMINISTRATIVE AND OTHER INFORMATION ABOUT THE TRUST

Members of the Council on 22 July 2025

Elected members:

1. Richard Townley (Chairman). Elected 27 September 2019, re-elected 21 September 2022. Richard, who has lived in the Suburb for 47 years, is a fellow of the Royal Institution of Chartered Surveyors and has spent over 50 years specialising in commercial property investment. For ten years he was a Trustee of Ambitious About Autism and has been involved in various Suburb projects, in particular the introduction of the heritage lighting in Central Square and the installation of the new flower beds in the Square.

2. Nicola Avery-Gee. Elected 7 October 2024. Nicola has lived on the Suburb for around 12 years and currently resides on Hampstead Way with her family. A former solicitor at Linklaters and now working in property management, she also acts as Data Protection Officer for Clowns Nursery. Nicola has overseen heritage renovations in both the Suburb and central London, and is passionate about conservation, community, and the natural environment. She has previously served as a trustee for two charities.

3. Gren Manuel. Elected 21 September 2022. Gren has lived on the Suburb for over 20 years. A financial journalist by profession, he has been heavily involved in climate change issues in the Suburb through HGSRA REACH and has written extensively on green investing. Gren chairs the Trust’s Finance Committee.

4. Sarah Stafford. Elected 20 September 2023. Sarah has lived on the Suburb since 2019. A lawyer by profession, she undertook a major eco-renovation of her house in 2023 and is a strong advocate for improving the energy efficiency of Suburb houses. Sarah chairs the Trust’s Estate Committee.

5. Raymond Taylor. Elected 20 September 2018, re-elected 30 September 2021, term came to an end on 23 September 2024. Raymond has lived on the Suburb for over 35 years and is a practicing corporate solicitor. Raymond served as Chairman until the end of his term.

Appointed members:

1. Elspeth Clements. Appointed by the Royal Institute of British Architects on 1 April 2015. Re-appointed 1 April 2018, 2021 and 2024. Elspeth is an accredited RIBA Conservation Architect and a former member of RIBA Council. She is Managing Director of Clements & Porter Architects, founded in 1979. She is also Vice-President of the Highgate Society and wrote part of the Highgate Conservation Area Appraisal. Elspeth chairs the Trust’s Plans Committee.

2. Dr Tye Blackshaw. Appointed by the Victorian Society on 7 January 2020, re-appointed 7 January 2023 . Dr Blackshaw holds a PhD in Victorian Architecture and an MA in Medieval Art and Architecture from the Courtauld Institute. She has worked for Pevsner’s Buildings of England series and the Victoria County History, and spent two years at the Cloisters, part of the Metropolitan Museum of Art in New York. Tye chairs the Trust’s Grants Committee.

3. Jonathan Ross. Appointed by the Law Society on 18 July 2011. Re-appointed 18 July 2014, 2017, 2020 and 2023. Jonathan is a solicitor and partner at Keystone Law, where his clients include a number of section 19 organisations and estates. He writes regularly for the property press. Jonathan is not now a resident, but he was brought up on the Suburb and his father is a past member of the Trust Council.

4. Tom Darwall-Smith. Appointed by the Royal Town Planning Institute on 19 October 2023. Tom is a Principal at Keystone Planning, an independent town planning consultancy, specialising in heritage planning and community engagement. He is passionate about the historic environment and the importance of good design.

Election and Appointment to the Council:

There was one vacancy for election following the end of Raymond Taylor’s second three-year term. Two candidates, Nicola Avery-Gee and Bryan Marcus, stood for the vacant position. Of the 193 valid voting papers received by the independent auditors, Bryan Marcus received 73 votes, and Nicola Avery-Gee received 120 votes. Therefore, Nicola Avery-Gee was elected as the new resident trustee on Trust Council.

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

LEGAL, ADMINISTRATIVE AND OTHER INFORMATION ABOUT THE TRUST

Registered office

The registered office of the Trust is 862 Finchley Road, London NW11 6AB, telephone number 020 8455 1066, [e-mail], www.hgstrust.org. The office is normally open Monday to Friday 9am to 5pm, excluding public holidays. You can find the Trust on Instagram @HGSTrust.

Indemnity Insurance

Trustees and Officers benefit from indemnity insurance to cover the liability of the Trustees and Officers which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Directors. The cost of this insurance in the year has been included within expenditure.

Trust Company membership

At 31 March 2025 there were 678 members of the Trust Company. Membership of the Trust is open to adults who are continuously resident on the Suburb . Membership is free, and each member's liability is limited to a guarantee of £1. Residents can apply online at www.hgstrust.org/membership.

Trust Council’s responsibilities

The Trust Council meets nine times a year to direct and oversee the work of the Trust staff in safeguarding the character and amenities of the Suburb. The Trust Council comprises four members elected by residents who are members of the Trust and four members appointed individually by the Law Society, the Royal Institute of British Architects, the Royal Town Planning Institute and the Victorian Society. These positions are all unpaid and carry responsibilities and duties requiring considerable time, understanding and effort.

Council members’ induction and training

New Council members are given written information including the Scheme of Management, Articles of Association, Annual Report and Charity Commission publications including The Essential Trustee. Induction sessions and courses are offered, tailored to individual needs and concerns. New Council members are encouraged to tour the office and meet all the staff and to attend the Plans Committee to gain insight into that important aspect of the Trust’s work.

Honorary Life President

The Trust’s Honorary Life President is Dr Mervyn Miller PhD, BA, BArch (Hons), MUP, MArch, FRIBA, FRTPI.

Honorary Accounts Adviser

The Honorary Accounts Adviser is Robin Marks BSc (Hons), AMIMA, AAT, TEP.

Volunteer Members of Advisory Committees (in addition to Trust Council members):

Estate Committee: Michael Mire, Maralyn Roberts, Laurence Wolff and Steven Rowe (from 2024)

Finance Committee: Jeremy Clynes, Robin Marks, Paul Hartley and Tony Ghilchik

Grants Committee: Rosemary Goldstein, Ron Finlay and Bryan Marcus (from 2024)

Plans Committee: Helena Benes and Emma Howard (ret.2025) Maureen Dor (from 2025)

Staff

The following people are employed by the Trust. Staff are full-time unless stated otherwise:

Will Hawkins – from 13 January 2025 Chief Executive Officer

Simon Henderson – until 10 January 2025 Chief Executive Officer

Richard Ross BSc (Hons), MRICS – from 25 April 2024 Head of Estates

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

LEGAL, ADMINISTRATIVE AND OTHER INFORMATION ABOUT THE TRUST

David Davidson BA (Arch), MA (Arch Cons) IHBC Head of Architecture

Paul Capewell BSc (Hons) Information Management Communications Officer

Frank Hawkins CHort MCIHort MArborA IOSH Green Estate Manager

George Izzo – from 1 June 2024 Credit & Finance Officer (part-time)

Joe Mathieson BA, MSt Architectural Adviser

Calum Orr BSc (Hons), MSc (Arch Cons) Architectural Adviser

Alice Porter BArch (Hons), MSc AssocIHBC Architectural Support Officer

Simone Rushton BA (Hons) – from 16 September 2024 Business Support Officer

Susan Samuels Office Manager (part-time)

Professional advisors and consultants

Architectural Consultant

Monica Knight Dip Arch, BSc Arch, Grad Dip Cons (AA), ARB

Solicitors

Lee, Bolton, Monier-Williams 1 The Sanctuary London SW1P 3JT

Bankers

HSBC Bank plc

Auditors

Menzies LLP Magna House, 18-32 London Road Staines-Upon-Thames Surrey TW18 4BP

Accountants

JS2 Limited One Crown Square Church Street East Woking Surrey GU21 6HR

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

REPORT OF THE COUNCIL

The Council members, who act in the role of directors and trustees, present their fifty-seventh annual report, together with the audited accounts of the Trust for the year ended 31 March 2025. For the purposes of this report the term “Trust” is used to mean the company whose directors are referred to as “the trustees”; the board is referred to as “the Council”.

OUR PURPOSE

The object and principal activity of the Trust is to do all things possible to maintain and preserve the present character and amenities of Hampstead Garden Suburb.

The original Hampstead Garden Suburb Trust was founded in 1907 and managed a Suburb that was almost entirely composed of leasehold properties. In 1967, changes in legislation obliged landlords to sell their freeholds on demand to long leaseholders. As the original Trust was not equipped for this new situation, it was dissolved after pressure from residents and replaced by the present Trust with a new constitution the following year. Instead of shareholders, the Trust has members, who must be Suburb residents, but not necessarily owners. The trustees are not permitted to benefit financially from their positions and on dissolution the assets of the Trust would be at the disposal of the Charity Commission.

The Trust has two principal functions:

1. For all residents : The Trust holds its assets and its remaining unenfranchised leaseholds in trust for all the residents of the Hampstead Garden Suburb . It manages these assets to maximize their value, and it devotes any operating surplus to the charitable purposes described in its Memorandum of Association and to maintaining its financial security.

The Trust’s charitable purposes cover the advancement of the arts, culture and heritage, environmental protection and improvement. Hampstead Garden Suburb is internationally recognised as the finest and best realised example of English twentieth-century domestic architecture and planning. The public benefit extends far beyond the 16,000 or so residents of the Suburb to the national and international community – lay and professional – with an interest in architecture, urban planning and social history. The lessons to be learnt from the ethos, history, landscape and architecture of the Suburb benefit both present and future generations.

1. For freehold property owners only : The Trust also operates a Scheme of Management, as provided for in section 19 of the Leasehold Reform Act of 1967. In 1974, the High Court authorised a Scheme under which the appearance of the buildings and grounds of all enfranchised freehold properties is regulated by the Trust. The purpose of the Scheme is to ensure that the Suburb’s architectural integrity and its amenities in terms of its trees, open spaces and gardens are preserved and maintained, and that unreasonable development is prevented.

The Scheme is funded by a Management Charge payable annually by freeholders. This money is held in trust for the freeholders alone and remains their property until spent. The Scheme’s finances have to balance year-on-year, and any surplus must be returned to Charge payers the following year. The Scheme does not have any reserves and does not own anything.

Since 1974, the great majority of the houses and many of the flat blocks on the Suburb have enfranchised and fall within the Scheme of Management, the numbers increasing year by year. In 1988 the Trust acquired the freeholds of all the long leasehold properties on the Suburb (including most of the blocks of flats) from Ashdale Land and Property Company Ltd. Through these leases, the freehold ownership of 11 allotment sites, 27 unadopted roads, some 50 other communal open spaces and the Scheme of Management itself, the Trust can maintain a unified control over changes to nearly all Suburb properties, together with the trees, hedges, and many of the communal areas around them. The London Borough of Barnet and Transport for London control and maintain the public highways and the larger open spaces. The Heath Extension is owned and maintained by the City of London Corporation.

OUR STATUS AND ORGANISATIONAL STRUCTURE

The Trust is a company limited by guarantee (registered in England number 928520), not having a share capital and is registered as a charity (Number 1050098). It is governed by its Memorandum and Articles of Association dated 8 March 1968 and most recently amended on 23 September 2024.

The Trust Council is responsible for decisions of the Trust. The Trust Council is advised on relevant matters by the Plans Committee (renamed from Property and Plans Committee in January 2025), Finance Committee (renamed from Finance & Operations Committee in January 2025), Estate Committee and Grants Committee (renamed from Grants & Amenities

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

REPORT OF THE COUNCIL

Committee in January 2025). Policies are developed by senior staff (Chief Executive, Head of Architecture and Head of Estates) and the advisory committees. Decisions are implemented by staff.

We confirm that we have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Commission in determining the activities undertaken by the Charity.

The Trust’s key activities are:

• Regulating change on the Suburb through applying the terms of the Scheme of Management to enfranchised freehold properties, and through the terms of the leases on properties where the Trust retains the freehold reversion:

• Directly maintaining our residual estate, including communal open spaces, private roads and allotments:

• Providing an expert architectural advisory service for residents, owners and their professional agents and contractors:

• Promoting an understanding and appreciation of the Suburb through walks, talks, publications, broadcast and new media:

• Making charitable donations to organisations that operate within the Suburb and exist to benefit its residents:

• Managing and building the Trust’s finances to permanently eliminate its long-term revenue deficit.

Through the care, regulation and control over the Suburb, the Trust as a Charity is able to provide the public benefits identified above, not only to residents but also to students of and visitors to the Suburb. We set out these aspects of the Trust’s work during the year in more detail below.

THE YEAR ENDED 31 MARCH 2025 IN REVIEW

In summary

While this was a year of leadership change, the Trust’s core purpose and day-to-day operations continued without disruption, thanks to strong foundations and careful planning. Key developments during 2024/25 included:

• Raymond Taylor completed his final term as Chair of Trust Council. He was succeeded by Richard Townley, an experienced Council member and long-time contributor to Central Square improvements, who has brought fresh energy to the role.

• A planned recruitment process led to the appointment of Will Hawkins as Chief Executive in January 2025. He brings senior leadership experience from the Royal Institute of British Architects, and a background in charitable governance, policy development, and design regulation. A smooth handover from outgoing CEO Simon Henderson helped ensure continuity.

• Retrofit Design Guidance, developed during the previous year, was published to support Suburb homeowners considering retrofit and energy efficiency measures. Produced in collaboration with a specialist consultancy, it complements the Trust’s existing Design Guidance and reflects emerging legislation and best practice.

Regulation

Applications for Trust Consent

In the year ended 31 March 2025, the Trust received 207 applications for changes to the external appearance, use, or structure of properties, an increase from 192 applications in the previous year. One application for the addition of a basement beneath an existing house was submitted and subsequently refused. Two applications were received for the demolition and reconstruction of a house, both incorporating new basements. One was granted provisional consent, while the other remains under review, though its principle has been accepted. No other applications for basements or full rebuilding were approved during the year.

This year, 49 applications were submitted for the replacement of windows with double-glazed units, all of which were granted consent. Trust staff have gained extensive experience in this area and work closely with joiners to ensure that new windows accurately match the originals. Provisional consent was granted for 22 new extensions to houses, with a total of 28 applications received. Additionally, 22 applications for loft conversions were submitted, with 18 receiving approval. Many minor proposals, such as small-scale repairs, electric vehicle chargers, and replacement garden gates, were handled informally.

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

REPORT OF THE COUNCIL

Advice and Enforcement

Throughout the year, we gave practical guidance to residents, prospective purchasers and their architects and contractors on matters concerning their properties. This included preliminary advice regarding applications, routine care and maintenance work, site visits during construction, property advice, the pruning and felling of trees and the care of landscape and hedges. Given the varying quality of applications for Trust Consent, the planning team dedicates significant time to providing expert guidance on the design and detailing of Suburb homes. The increasing reliance on unqualified designers over chartered architects has made this process even more necessary to ensure that proposals meet the required standards. While time-consuming, this work is essential to upholding the high design principles established by the Suburb’s original architects in all new developments. Around 600 visits were made to individual properties by the planning team in the year ending 31 March 2025, up from around 540 from the year ending 31 March 2024.

We always seek to enforce the Scheme of Management through discussion and negotiation with residents, whether through the application and construction process, or the reinstatement of unauthorised alterations to Suburb property. This is particularly the case where a new application is received for work on a house with an existing infringement. In the year ending 31 March 2025, two infringements were issued, down from seven the previous year. Fourteen infringements were lifted, up from 11 the year before. The number of lifted infringements is mainly due to a survey of historic infringements on some streets, where the infringement was no longer relevant or had been remediated without our knowledge. The need for enforcement through court action has again been avoided this year through successful negotiation with property owner over unconsented work or, if necessary, legal letters.

Awareness and Education

The preservation of the Suburb as a significant landmark in the evolution of domestic architecture and town planning depends on fostering a well-informed understanding of its unique character. To support this, we undertake educational initiatives and outreach through talks, guided tours, and publications, both in print and online, while also collaborating with groups and organizations that share our objectives.

Trust staff led guided walks as part of The Proms at St Jude’s (which the Trust sponsors), the London Festival of Architecture, and Open House. Topics included Women of Hampstead Garden Suburb, Streamline in the Suburb, and Reappraising Winnington Road. The planning team also hosted site visits for students from the University of Nottingham, the University of Westminster, and the Bartlett School of Planning at UCL.

One of the most frequent concerns raised by residents is how to enhance the sustainability and cost-efficiency of their homes. In response, we successfully completed a key project this year with the publication of our retrofit guidance, developed in collaboration with a team of consultants. This guidance provides recommendations on implementing thermal upgrades and energy efficiency measures while respecting the special character of the area that the Trust has a duty to protect.

Maintaining the fabric of the Suburb

Garden and road maintenance work continued across the Suburb throughout the year. For 2025 the gardening contract was not retendered. Instead, a negotiated contract was agreed with the current gardener with an emphasis on a phased move to use electric garden machinery rather than petrol.

Our arboriculturist and consultants made 327 visits to properties to advise on trees and hedges during the year. Staff changes meant that the annual tree survey was undertaken in summer 2024. The Suburb was initially planned around the pre-existing landscape of hedges and trees, many of which are several hundred years old and need careful and continual maintenance if they are to survive. Insurance companies continue to apply for the removal of healthy mature trees as an initial solution to subsidence without first considering alternative remediation methods. We have so far resisted these, with the welcome support of the HGSRA, and we are working to find mutually acceptable solutions that preserve one of the Suburb’s most distinctive assets. The 2024 annual tree survey was completed and there were no significant issues identified.

The tennis courts were heavily used throughout the summer. In May 2024 a new booking system was introduced using Clubspark. Registered users book via the Clubspark website which releases a one time code for the Court gate. In December 2024 a charge of £4 per hour was introduced realising £1,024 to 31 March 2025. The court surfaces are being refurbished during 2025.

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

REPORT OF THE COUNCIL

The allotments remain popular, and there is a short waiting list. The volunteer Allotment Secretaries provided valued support over the year in overseeing the best use of plots, offering advice to plot holders. Maintenance work has been undertaken during the year with further works planned for the coming year.

Charitable grants

We provide grant aid to local organisations with charitable aims, where the activity is based in the Suburb and supports the Trust’s purpose of preserving and enhancing its character and amenities. In the year ending 31 March 2025, we awarded 12 grants totalling £29,495 to 11 organisations directly benefiting the Suburb.

These comprised: £2,570 to Britain’s Biggest Living Garden; £2,500 to Garden Suburb Junior School; £5,000 to HGS Synagogue; £1,325 to Northway Garden Organisation; £5,000 to St Jude-on-the-hill; £300 to Brookland Junior School; £3,500 to HGS Residents Association for the Friends of Lyttelton; £500 to Garden Suburb Theatre; £500 to Henrietta Barnett School; and £7,000 to Proms at St Jude’s, £1,300 to HGS Archives Trust.

Our volunteers

We again benefited from the highly valued contribution of our volunteer committee members, including non-Trustee members of the Plans Committee, the Estate Committee, the Finance Committee and the Grants Committee. Altogether there are 14 residents serving on the Trust Council and committees, plus many others who help the Trust in various valuable ways.

FINANCIAL MATTERS

The Statement of Financial Activities (SOFA)

The form in which the statement of financial activities is set out on page 17 complies with the Charity Commission requirements to relate expenditure to the Trust’s objectives, rather than under heads of expenditure. The statement also identifies and details the finances of the Scheme of Management separately from those of the Trust. As a supplement to assist members and Charge payers, we include an analysis of the Management Charge as an appendix to the report and accounts. This gives a breakdown under heads of expenditure (see page 35) and does not form part of the Report and Accounts.

Our financial obligations

As explained above, the Trust has a dual financial obligation. All its assets are held in trust for the benefit of all Suburb residents, regardless of their property tenure. The Trust also operates a Scheme of Management, funded by a Management Charge paid by enfranchised freeholders only. These funds are accounted for separately from the Trust’s own funds and are held in trust for the freeholders until they are spent. Any funds received under other provisions of the Scheme are also held in trust, to be applied in subsequent years in accordance with the terms of the Scheme.

A. Assets held in Trust for all residents

In the course of the year ended 31 March 2025, our reserves increased by £379,203. Revenue from ground rents and other charges relating to the Trust’s leased properties totalled £297,576. Income from the sale of freeholds and lease extensions (as required by the Leasehold Reform Acts), along with one-off payments for variations to leases and covenants, totalled £427,064. An additional income stream from providing conveyancing packs on property sales raised £43,408. Designated income, consisting of donations from residents during the year, totalled £477.

The overall increase in reserves was lower than the receipts from asset sales. These sales – which include freehold disposals and variations to leases and covenants – provide a vital but finite source of income. The Trust continues to manage these receipts with care, recognising that they can only be realised once. Our aim is to invest them prudently, building a secure and sustainable income stream to support the Trust’s long-term work.

We consider that the overall state of the Trust’s financial affairs continues to be strengthened. The Trust’s assets are available and adequate to fulfil its current obligations, but we recognise that they are capable of further improvement to achieve a guaranteed surplus year-on-year. As one step towards this goal, we reviewed the distribution of the Trust’s funds across its bank accounts and reallocated them to a range of accounts offering higher interest rates during 2024/25.

B. The Scheme of Management

Income and expenditure under the Scheme budget for the year were the equivalent of an actual charge of £216.85 per household, based on the median number of chargeable properties in the year ended 31 March 2025. This is below the estimated charge of £217.92 per budgeted enfranchised property, and represents an effective rebate to charge payers

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

REPORT OF THE COUNCIL

of £20.64 per actual enfranchised property for the year. This rebate will be set against the estimated charge for the year ending 31 March 2026 when the Management Charge bills are sent out in August 2025.

The Management Charge is a local land charge that runs with the property. The law requires that rebates must be made to the current owner, even when the costs they relate to were incurred before a transfer of ownership. We maintain a credit control policy to minimise arrears in-year, including reclamation through the County Court in cases of serious or long-term default. This allows us to obtain a Charging Order on the property and a Charge on the Title. Ten County Court applications were made in the year. Most were settled and Charging Orders have needed to be applied for against one property.

In cases of genuine hardship, we will offer various stage payment options or arrange for an assistance grant through HGS Fellowship. Fifteen payment plans for major debt are currently in place (2023/24: 20) and one assistance grant was made in 2024/25.

Financial Management

• During the period, the stated value of the Trust’s general unrestricted reserves grew by an amount £378,727. After stripping out the £427,064 surplus on freehold sales, licences and variations and the net losses on investments of £6,962 there was an operational deficit of (£41,375). The deficit reflects the level to which the one-off sales of assets are being used in annual running costs. This underlying deficit reflects a one-off investment in refurbishing Trustowned properties, supporting the Trust’s long-term objectives.

• £4,117,091 is held in the Trust’s general fund (see note 23). This includes the Trust’s working capital, the calls on which include the funding of the deficit in the cash flow of the Scheme of Management that occurs in the course of the year.

• £137,900 is held in restricted funds (see note 21).

• The Council has designated those funds that are intended to be held for the long term and that constitute the foundation of the Trust’s future income. Property investments in these designated funds are intended to be held for the long term and expenditure from them is intended to be limited to amounts that do not exceed in any one year more than half the real growth in capital and income. Funds designated by the Trust Council total £3,442,660. These resources are in the form of: £3,442,660 in property assets (see note 22a, b and c and 23).

The Trust does not have any obligations in respect of a defined benefit pension scheme.

As The Trust does not carry out any fundraising the normal required disclosures regarding fundraising practices are not included in these accounts.

Pay and remuneration

The trustees comprise the Trust Council. No trustees received remuneration in the period.

The senior management team comprises the key management personnel of the Trust, i.e. Chief Executive, Head of Architecture and Head of Estates.

Staff pay and conditions are reviewed annually as part of the budget-setting process. The Trust seeks to ensure that its pay framework is fair, affordable, and capable of attracting and retaining the skilled staff it requires. In line with its terms of reference, the Finance Committee acts as the Trust’s remuneration committee and advises on the overall parameters for pay.

In 2025, the Committee reviewed pay trends and market conditions and agreed a structured approach to annual pay adjustments, including a general inflation-linked uplift and scope for limited discretionary adjustments. Individual awards were determined by the Chief Executive within these parameters. The salary of the Chief Executive is set by trustees.

With no structured benefits beyond an employer pension contribution, base salary is the main element of the Trust’s employment offer.

Reserves and investment policy

Our fundamental financial objective to build the Trust’s investable assets to a level that will enable it to (i) bring its operating account, in chronic deficit for many years, into balance; and (ii) produce an increasing operating surplus independent of the Scheme of Management. Our investment policy is predicated on these two objectives.

Since 2005, the Trust’s own revenue has been generated by the sale of assets which were on the balance sheet at book value, by fees from the variation of covenants which had no assigned balance sheet value, and by ground rents on

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

REPORT OF THE COUNCIL

leasehold properties for which it holds the freehold title. We expect the receipts from these sales to decline progressively to a level which no longer generates any significant income. Long-mooted changes in leasehold enfranchisement legislation may remove the ability to charge a premium on such sales. Income from fixed ground rents was always modest and declines iteratively with every freehold enfranchisement.

The Trust therefore looked to establish a reliable source of income to replace the present arrangement while this was still capable of generating significant revenue. Since 2011, we have used the proceeds from asset sales to purchase residential property on the Suburb, the rental income from which supports the Trust’s obligations to contribute towards shared costs from its own funds, and to meet its own costs. Over time, the steadily increasing revenue for this growing portfolio would reduce, and then wipe out the chronic deficit in the Trust’s own accounts once sales of assets are discounted.

We consider that continuing to invest in a mixed portfolio of rentable local property provides a robust and responsible approach to protecting and building the Trust’s reserves in the medium-to-long term, and one that is adaptable to changes in external economic circumstances, insofar as they can be foreseen.

THE TRUST COUNCIL

Information regarding the Trust Council, including details of those members in office during the period and at the date of approval of this report, is shown under Legal, Administrative and Other Information.

Council members’ responsibilities in respect of the preparation of accounts

The trustees (who are also directors of The Hampstead Garden Suburb Trust for the purposes of company law) are responsible for preparing the Report of the Council and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

• Select suitable accounting policies and then apply them consistently.

• Observe the methods and principles in the Charities SORP.

• Make judgements and estimates that are reasonable and prudent.

• State whether applicable UK Accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

• Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. We are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RISK MANAGEMENT

The Trust maintains a structured approach to risk management in order to safeguard its operations, assets, and longterm ability to deliver both its charitable objectives and its Scheme of Management obligations.

Over the past year, we updated our methodology for identifying and managing risk. Previously, the Trust’s Risk Register was structured primarily around insurable risks. While this provided a degree of coverage, it made it harder to prioritise emerging strategic or operational risks in a consistent and transparent way.

In 2025, following a review of management systems by the new Chief Executive, a revised Risk Register was developed by the senior management team using a standard impact and likelihood model. This approach supports more effective oversight by trustees by enabling risks to be scored, ranked, and regularly monitored. It also allows for clearer identification of where action is needed and helps focus attention on the most significant issues.

Risks are now classified by category, scored before and after controls, and assigned to responsible owners. High-priority risks - such as those relating to legal challenges or enforcement under the Scheme of Management - are flagged and

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

REPORT OF THE COUNCIL

reported to Trust Council for regular review. Lower-priority but still important risks are monitored and reviewed periodically by management.

A range of controls are in place to help manage and reduce risk. These include formal procedures for planning and enforcement, regular financial reporting and oversight, independent audit, investment and reserves policies, and appropriate insurance cover. The revised register also allows clearer tracking of where controls are in place and where further action is required.

OUR FUTURE PLANS

The Trust’s financial strategy remains focused on building stable, predictable income to reduce reliance on asset sales and support our long-term charitable purpose. As we navigate inflationary pressures and increasing demands on core services, prudent financial planning and prioritisation will be central to delivery.

Looking ahead, we aim to:

• Protect the Suburb’s unique character by offering clear, practical guidance on issues such as energy efficiency, tree health and respect for the Suburb’s architectural character.

• Deliver value through careful management of the Scheme of Management, aligning expenditure with actual need.

• Improve the Trust’s own estate, including green spaces and community amenities, and begin addressing longer-term issues like climate resilience and tree succession.

• Begin a programme of digital transformation, starting with the rollout of a new internal database to improve efficiency and laying the groundwork for better resident-facing systems.

• Engage with residents through consultation on emerging projects and broader participation in the Trust’s work.

• Maintain the Trust’s position as the Suburb’s independent protector, supported by strong governance, skilled staff and growing financial resilience.

With reserves and risk management strategies in place, the Trust remains a going concern. Our 2025/26 budget and cashflow plan take account of potential risks and allow for timely adjustments where needed. Alongside operational improvements, we will continue to develop our communications. This includes updating our Instagram presence as part of a broader effort to share information more effectively, engage with residents, and celebrate the Suburb’s unique character.

DISCLOSURE OF INFORMATION TO THE AUDITORS

We, the Trustees of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

• there is no relevant audit information of which the company's auditors are unaware; and

• we have taken all the steps that we ought to have taken as Trustees in order to make ourselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

REPORT OF THE COUNCIL

SMALL COMPANIES NOTE

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

By order of the Council

eZ by: COC46486B6AB4A8... Will Hawkins Secretary 23-Jul-2025

D46FD81F4BCE402... Richard Townley Chairman 23-Jul-2025

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

Opinion

We have audited the financial statements of The Hampstead Garden Suburb Trust Limited (the ‘charitable company’) for the period ended 31 March 2025 which comprise Statement of financial activities, Balance sheet, Statement of cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘ The Financial Reporting Standard applicable in the UK and Republic of Ireland ’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 March 2025, and of the charitable company’s incoming resources and application of resources, including its income and expenditure for the period then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company'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.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the report of the council for the financial period for which the financial statements are prepared is consistent with the financial statements; and

• the report of the council has been prepared in accordance with applicable legal requirements

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the report of the council.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our 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 an auditor’s report that includes our 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which these are capable of detecting irregularities, including fraud is detailed below:

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

• The charitable company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including FRS 102, Charities SORP, Companies Act 2006, Charities Act 2011 and compliance with the scheme of management. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

• We understood how the charitable company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary. We corroborated our inquiries through our review of board minutes.

• The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area.

• We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas; management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests.

Audit procedures performed by the engagement team included:

• Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

• Reviewing the basis and allocations to the scheme of management;

• Challenging assumptions and judgments made by management in its significant accounting estimates; and

• Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx.

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

[Matthews] |[Javice] DocuSigned by:

Janice Matthews FCA (Senior Statutory Auditor)

for and on behalf of

Menzies LLP

Chartered Accountants Statutory Auditor Magna House 18-32 London Road Staines-Upon-Thames TW18 4BP

Date: 28-Jul-2025

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Company number 00928520

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (Including the income and expenditure account)

FOR THE YEAR ENDED 31 MARCH 2025

		Unrestricted	Unrestricted	Restricted	Restricted	Year ended	Year ended
		General	Designated	Scheme of	Other 31 March 2025		31 March 2024
		Fund	Funds	Management	Restricted	Totals	Totals
					Funds
	Note		Note 21	Note 20	Note 20
		£	£	£	£	£	£
Income from:	1(a&d)
Donations and legacies:
Leaseholders voluntary & other donations		-	477	-	-	477	596
Other trading activities:
Sundry income		43,408	-	-	-	43,408	26,464
Investments:
Rental and other investment income	3	331,659	-	-	-	331,659	325,769
Charitable activities:
Application fees	4	17,662	-	83,532	-	101,194	115,771
Management Charges payable by freeholders		-	-	878,625	-	878,625	887,158
Legal fees recovered		-	-	220	-	220	605
Estate Maintenance Charges	1(f)	126,796	-	-	-	126,796	151,650
Other income:
Freehold sales, licences & variations	5	427,064	-	-	-	427,064	528,295
		----------------------	----------------------	----------------------	----------------------	----------------------	----------------------
Total income		946,589	477	962,377	-	1,909,443	2,036,308
		----------------------	----------------------	----------------------	----------------------	----------------------	----------------------
Expenditure on:	6,7
Raising funds:
Rental and other investments		177,312	-	-	-	177,312	135,318
Charitable activities:
Regulation: Applications		33,109	-	242,802	-	275,911	258,798
Regulation: Awareness/Advice/Enforcement		78,675	-	284,500	-	363,175	347,617
Maintaining the fabric of the Suburb		145,008	-	351,737	-	496,745	471,382
Rechargeable estate maintenance	1(f)	126,796	-	-	-	126,796	151,650
		----------------------	----------------------	----------------------	----------------------	----------------------	----------------------
Total expenditure		560,900	-	879,039	-	1,439,939	1,364,765
		----------------------	----------------------	----------------------	----------------------	----------------------	----------------------
Net loss on investments		(6,962)	-	-	-	(6,962)	(24,369)
		----------------------	----------------------	----------------------	----------------------	----------------------	----------------------
Net income	8	378,727	477	83,338	-	462,542	647,174
		----------------------	----------------------	----------------------	----------------------	----------------------	----------------------
Balance of Freeholders Management	2&17
Charges: refunded		-	-	(138,196)	-	(138,196)	(224,123)
		----------------------	----------------------	----------------------	----------------------	----------------------	----------------------
Net movement in funds		378,727	477	(54,858)	-	324,346	423,051
		----------------------	----------------------	----------------------	----------------------	----------------------	----------------------
Reconciliation of funds:
Funds brought forward at 1 April 2024		3,738,364	3,442,183	-	137,900	7,318,447	6,809,469
		----------------------	-----------------------	----------------------	----------------------	----------------------	----------------------
Funds brought forward at 1 April 2024
before return or charge of balance of		3,738,364	3,442,183	138,196	137,900	7,456,643	7,033,592
Management Charge
Balance of Freeholders Management charges to be refunded	2&17	-	-	(83,338)	-	(83,338)	(138,196)
		----------------------	-----------------------	----------------------	----------------------	----------------------	----------------------
Funds carried forward at 31 March 2025	23	4,117,091	3,442,660	-	137,900	7,697,651	7,318,447
		==========	==========	==========	==========	==========	==========

All of the above are continuing activities of the Trust. The Trust had no recognised gains and losses other than those included above.

The notes on pages 20 to 33 form part of these accounts.

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Company number 00928520

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

BALANCE SHEET

AT 31 MARCH 2025

			31 March 2025	31 March 2025	31 March 2024	31 March 2024
	Notes		£	£	£	£
FIXED ASSETS
Tangible assets
Freehold and long leasehold estate, at cost	10 & 1(c)	10 & 1(c)	37,805		38,615
Freehold property, at cost less depreciation		11	349,939		358,021
Estate works, at cost less depreciation		12		-	3,046
Investments
Property investments, initially at cost
subsequently at fair value		13	5,655,000		5,237,500
Other investments		14		-		-
			-----------------		-----------------
Total fixed assets				6,042,744		5,637,182
CURRENT ASSETS
Debtors		15	443,110		296,609
Cash at bank and in hand			1,063,067		1,429,891
Short Term Deposits			425,000		265,134
			--------------------		--------------------
Total current assets			1,931,177		1,991,634
LIABILITIES
Creditors: amounts falling due within one
year		16	(276,270)		(310,369)
			-------------------		-----------------
NET CURRENT ASSETS				1,654,907		1,681,265
				-------------------		-------------------
TOTAL NET ASSETS OR
LIABILITIES				7,697,651		7,318,447
				==========		==========
Representing the funds for the charity:
Unrestricted funds:
General fund	23	23		4,117,091		3,738,364
Designated funds	22(a,b			3,442,660		3,442,183
	&c)
Restricted funds:
Scheme of Management compensation		21		137,900		137,900
				------------------		------------------
				7,697,651		7,318,447
				=========		=========

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

Approved and authorised for issue on behalf of the Council on 22 July 2025 and signed on its behalf by

[rian A & Towwley Richard Townley

The notes on pages 20 to 33 form part of these financial statements.

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Company number 00928520

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

Cash flows from operating activities Cash flows from investing activities Rental and other investment income Proceeds from the sale of investments Purchase of investments Net cash generated/(used) by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period NOTES TO THE CASH FLOW STATEMENTS Reconciliation of Net income to Net Cash Flow from Operating Activities Net income for the reporting period Depreciation charges Loss on investments Rental and other investment income Increase in debtors Increase in creditors Net cash provided by operating activities Analysis of Cash and Cash Equivalents Cash at bank and in hand Short term deposits Analysis of changes in net debt At 31stMarch 2024 £ Cash and cash equivalents 1,695,025 ------------------- 1,695,025 =========	Year ended 31 March 2025 £ (114,965) 331,659 810 (424,462) ----------------- (91,993) (206,958) 1,695,025 -------------------- 1,488,067 ========== Year ended 31 March 2025 £ 324,346 11,128 6,962 (331,659) (146,501) 20,759 ------------------- (114,965) ========= 1,063,067 425,000 ------------------- 1,488,067 ========= Cashflows £ (206,958) ------------------- (206,958) =========	Year ended 31 March 2024	Year ended 31 March 2024	Year ended 31 March 2024
		£
		132,525
			325,769
			1,620
			(921,869)
			-----------------
			(594,480)
		(461,955)
		2,156,980
		--------------------
		1,695,025
		==========
		Year ended 31 March 2024
		£
		423,051
		11,129 24,369 (325,769) (54,265) 54,010 ------------------- 132,525
		=========
		1,429,891
		265,134
		-------------------
		1,695,025
		=========
		At 31stMarch 2025 £ 1,488,067 ------------------- 1,488,067 =========

The notes on pages 20 to 33 form part of these financial statements.

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THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

GENERAL INFORMATION

The charity is a private company limited by guarantee and is incorporated and registered in England and Wales. Its registered office and principle place of business is 862 Finchley Road, London NW11 6AB.

The financial statements are presented in Sterling (£).

The objects and principal activity of the charity is to maintain and preserve the character and amenities of Hampstead Garden Suburb.

1. ACCOUNTING POLICIES

The following are the accounting policies adopted by the Trust:

a) Basis of preparation

The financial statements are prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and the Companies Act 2006.

The Hampstead Garden Suburb Trust meets the definition of a public benefit entity under FRS102.Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

b) Going concern

The trustees consider that there are no material uncertainties regarding the charitable company’s ability to continue as a going concern.

c) Fixed assets and depreciation

Freehold and long leasehold estate: This is stated at cost and is not being depreciated, but the book value is reduced on the sale of each freehold and lease extension.

Freehold land and building: Freehold land is not being depreciated. Depreciation was provided on the freehold building at £500 per annum from 6 April 1978 to 5 April 1984. This policy was changed from that date so that no further depreciation is provided as the property is maintained to a sufficiently high standard to extend its useful life indefinitely. The book value of the Trust’s freehold land and building is based on a professional valuation carried out as at 12 December 1968. Until the year ending 5 April 2019, the Trust’s office extension was held at its investment value. In line with the Charities SORP (FRS 102) from that date onwards the office extension is shown at cost (from completion in 2013) of £404,035 less depreciation on a straight line basis over 50 years. The parts of the Trust’s office building that are currently used as residential could be taken back in to the Trust’s use at short notice. The Trust considers that reliably measuring the residential element in isolation of the rest of the land and building would involve the Trust in undue cost and/or effort.

Office equipment and furniture: The charity currently has a capitalisation policy, whereby only items over £5,000 will be capitalised and included within the assets of the charity, all costs below this threshold are written off in the year of purchase. The depreciation rate provided on office equipment and furniture is 3 years so as to write off the cost of the office furniture and equipment over its expected useful working life.

Estate works: The charity has a capitalisation policy whereby appropriate estate works over £5,000 will be capitalised and included within the assets of the charity, all costs below this threshold are written off in the year the works are undertaken. The depreciation rate provided on appropriate estate works is 10 years so as to write off the costs over their expected useful life.

20

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

d) Income and expenditure

All incoming resources and all resources expended are accounted for in the period to which they relate, as follows:

• Donations are accounted for when they are received into the Trust’s bank account.

• Legacies are accounted for once notification of entitlement has been received.

• Income from investment property rents is recognised in the period of rental being provided.

• Ground rents, quarterly & annual rents are recognised in the period of rental being provided as the leases prescribe.

• Application fees for Trust Consent are accounted for when they are received into the Trust’s bank account.

• Management Charges are billed annually in September, with arrears reminders in December, March and June. Receipts are accounted for and recognised in the period to which the income relates.

• Rechargeable Estate Charges: the Trust carries out various rechargeable works to communal or shared areas, such as gardening and road works. The direct cost of these works is recharged to those owners obligated to contribute to such costs as a condition of their property title. Costs are added to property accounts and accounted for quarterly but billed annually. Estate management expenditure is accounted for monthly.

• Income from freehold sales, licences and variations is notified to the Trust on completion of the legal agreement but only accounted for when received from the Trust’s solicitors and allocated as above. Income from completions within the financial year received after 31[st] March are not accrued. This is in accordance with the Trusts rules.

Restricted funds comprise monies raised for, and their use restricted to, a specific purpose; or donations subject to donor imposed conditions (see Note 20).

Directly attributable expenditure is charged to charitable activities or governance costs as appropriate. Support costs, which are defined as those costs necessary to deliver an activity but which do not contribute to its output, are allocated on the basis of estimated staff time.

Governance costs are those which relate to the general running of the charity, rather than charitable activity. These include audit fees, legal advice for trustees and costs associated with constitutional and statutory requirements together with the appropriate allocation of support costs.

e) Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied exclusively to its charitable purposes.

f) Pensions

The Trust has contributory pension arrangements, which it accounts for on an accruals basis.

g) Investments

Investments comprise short term deposits and property assets. Investment properties are held at trustees’ best estimate of market value at the balance sheet date in accordance with the SORP. The Trust maintains a regular review of local properties prices, and investment property values are reviewed by the Trust’s Head of Estates against a comparable range of local properties of equivalent location and size. Any gains or losses on investment assets are shown on the SOFA. No depreciation is charged on investment property.

21

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

h) Critical accounting judgements and estimates

In preparing these accounts, management has made judgements, estimates and assumptions that affect the application of the charity’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the accounts. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant accounting judgements and estimates include:

• Valuation of investment property (see note 1(h).

• Allocation of expenditure to the Scheme of Management (see note 2).

i) Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment

j) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

k) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value.

l) Redundancy and termination costs

The charity recognises employee redundancy and termination costs in full on the date the redundancy or termination is confirmed.

22

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

2. SCHEME OF MANAGEMENT

The Trust administers a Scheme of Management under the 1967 Leasehold Reform Act. This was passed by the High Court in 1974 and amended in 1983. The purpose of the Scheme is to preserve and conserve the Hampstead Garden Suburb and applies to all freehold properties enfranchised since the Act came into force. Each item of income and expenditure is allocated to either the Scheme of Management or the general fund, or where appropriate shared between both. The basis on which Freeholders have consequently been charged with a proportionate part of the expenses of the Trust in operating the Scheme has been agreed by the auditors.

Items of expenditure and income that relate to both the Scheme of Management and the general fund are apportioned as follows

• General overheads are apportioned according to the proportion of enfranchised (i.e. freehold) properties to all properties in respect of which the Management Charge or lease rents are payable to the Trust. Within this calculation flats are weighted against houses in the proportion 1:10. The weighting has been determined by an analysis of staff time which showed that on average more than ten times as much time, weighted for salary, was spent on houses as on flats. This calculation results for 2024/2025 in an apportionment of 88%:12% (Year ended 31 March 2024 88%:12%) between the Scheme of Management and the general fund.

• Legal costs are allocated or apportioned on a case by case basis, in accordance with legal advice. The apportionment is determined according to the balance of significance of the covenants relating to the Scheme of Management and to the Trust as the owner of the residual estate, balanced by consideration of the overriding reasons for the Trust defending or taking the action.

• Costs for projects and amenities of benefit to all residents are apportioned according to the proportion of enfranchised (i.e. freehold) properties to all properties in respect of which the Management Charge or lease rents are payable to the Trust, with each property weighted equally. For 2024/2025, this results in an apportionment of 80%:20% (Year ended 31 March 2024 80%:20%) between the Scheme of Management and the general fund.

The Trust's auditors are satisfied that these apportionments are an appropriate basis on which to allocate expenditure to the activities of the Trust and the Scheme of Management. The accounting systems used by the Trust ensure that all items of income and expenditure attributable to the Scheme of Management are separately accounted for. Given the separate accounting records, the trustees do not consider that the Scheme of Management would be any more effectively operated with a separate bank account, and the auditors concur with this decision. A summary of the resources expended by the Trust, allocated between the general fund and the Scheme of Management and related to an individual Management Charge, is set out on page 34 by way of additional information as that page does not form part of the report & accounts. The net surplus of £138,196 (Year ended 31 March 2023: net surplus of £224,123) attributable to the Scheme will be returned by a balancing credit to each Freeholder in accordance with clause 8 (b) (ii) of the Scheme of Management.

23

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

3.	INVESTMENT INCOME	INVESTMENT INCOME			Year	Year
					ended	ended
					31 March	31 March
					2025	2024
					£	£
	Rental income				297,576	293,877
	Bank interest				34,083	31,892
					---------------	---------------
					331,659	325,769
					=======	=======
	Allocated to:
	Trust and estate management (general fund)				331,659	325,769
					========	========
4.	BUILDING APPLICATION FEES				Year	Year
					ended	ended
					31 March	31 March
					2025	2024
					£	£
	Leasehold				17,662	14,636
	Freehold				83,532	101,135
					----------------	----------------
					101,194	115,771
					========	========
5.	FREEHOLD	SALES,	LICENSES	&	Year	Year
	VARIATIONS				ended	ended
					31 March	31 March
					2025	2024
	Freehold Sales				244,314	225,541
	Variations				159,904	221,254
	Lease Extensions				22,846	81,500
					----------------	----------------
					427,064	528,295
					========	========

24

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

6. ANALYSIS OF EXPENDITURE

ANALYSIS OF EXPENDITURE
	Year	ended 31 March	2025
	Direct	Support	Total
	£	£	£
Costs of Generating Funds
Rental/Investment Management	144,146	33,166	177,312
Charitable activities (inc. Governance costs)
Regulation: Applications	190,119	85,792	275,911
Regulation: Awareness/Advice/Enforcement	261,964	101,211	363,175
Maintaining the Fabric of the Suburb	432,258	64,487	496,745
Rechargeable Estate Maintenance	126,796	-	126,796
	------------------	------------------	------------------
	1,155,283	284,656	1,439,939
	=========	========	========
	Year	ended 31 March	2024
	Direct	Support	Total
	£	£	£
Costs of Generating Funds
Rental/Investment Management	102,740	32,578	135,318
Charitable activities (inc. Governance costs)
Regulation: Applications	172,731	86,067	258,798
Regulation: Awareness/Advice/Enforcement	245,742	101,875	347,617
Maintaining the Fabric of the Suburb	396,816	74,566	471,382
Rechargeable Estate Maintenance	151,650	-	151,650
	------------------	------------------	------------------
	1,069,679	295,086	1,364,765
	=========	========	========

25

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

7. DIRECT AND SUPPORT COSTS

DIRECT AND SUPPORT COSTS
		Year	ended 31 March 2025
			Amenities	Legal/
	Staff	Support	& Project	Professional	Total
	Costs	Costs	Costs	Costs
	£	£	£	£	£
Costs of Generating Funds
Rental/investment management	144,146	33,166	-	-	177,312
Charitable Activities
(inc. Governance costs)
Regulation: Applications	190,119	85,792	-	-	275,911
Regulation: Awareness/Advice/
Enforcement	211,404	101,211	-	50,560	363,175
Maintaining the Fabric of the
Suburb	84,490	64,487	333,095	14,673	496,745
Rechargeable Estate Maintenance	-	-	126,796	-	126,796
	----------------	----------------	----------------	----------------	------------------
	630,159	284,656	459,891	65,233	1,439,939
	=======	=======	========	========	=========
		Year	ended 31 March 2024
			Amenities	Legal/
	Staff	Support	& Project	Professional	Total
	Costs	Costs	Costs	Costs
	£	£	£	£	£
Costs of Generating Funds
Rental/investment management	102,740	32,578	-	-	135,318
Charitable Activities
(inc. Governance costs)
Regulation: Applications	172,731	86,067	-	-	258,798
Regulation: Awareness/Advice/
Enforcement	200,785	101,875	-	44,957	347,617
Maintaining the Fabric of the
Suburb	91,228	74,566	282,244	23,344	471,382
Rechargeable Estate Maintenance	-	-	151,650	-	151,650
	----------------	----------------	----------------	----------------	------------------
	567,484	295,086	433,894	68,301	1,364,765
	========	========	========	========	=========

Support costs include £130,163 (Year ended 31 March 2024: £122,948) of management and staff costs.

26

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

8.	NET INCOME	Year ended	Year ended
		31 March 2025	31 March 2024
		£	£
	Net incoming resources for the period has been stated after charging:
	Depreciation - Office	8,082	8,082
	Depreciation – Estate	3,046	3,047
	Auditors remuneration – audit	13,715	18,438
		=======	=======

9. MANAGEMENT AND STAFF COSTS

The average number of full and part-time staff (employees and contracted staff) during the year was 12 (Year ended 31 March 2024: 11) of which 3 (Year ended 31 March 2024: 3) were part-time and all of whom were involved in the delivery of the Trust’s activities. The average number of Full Time Equivalent employees and contracted staff during the period was 10.58 (Year ended 31 March 2024 10.06).

	Year ended	Year ended
	31 March 2025	31 March 2024
	£	£
Management and staff costs during the period comprised:
Wages and salaries	554,116	503,060
Employers NI	51,600	50,119
Pension – Defined Contribution	44,267	37,065
Other management costs and expenses incurred	110,339	100,189
	------------------	------------------
	760,322	690,433
	========	========

For the Year Ended 31 March 2025 two employees received emoluments in the range £70,000-£80,000 (Year ended 31 March 2024: one), one employee received emoluments in the range £80,000 - £90,000 (Year ended 31 March 2024: two), no employee received emoluments in the range £90,000 - £100,000 (Year ended 31 March 2024: none), and no employee received emoluments in the range £100,000 - £110,000 (Year ended 31 March 2024: one).

The total employee benefits of the key management personnel of the Trust were £307,323 (Year ended 31 March 2024: £298,369)

No trustees received remuneration in either this year or the previous year.

10.	FREEHOLD AND LONG LEASEHOLD	31 March 2025	31 March 2024
	ESTATE, AT COST	£	£
	At 1 April 2024	38,615	40,235
	Disposals during the year	(810)	(1,620)
		--------------	--------------
	At 31 March 2025	37,805	38,615
		========	========

The Trust has an interest in a number of freehold properties. On enfranchisement of the interest the Trust receives the proceeds and recognises this amount in full on the face of the SOFA under Other income Freehold sales, licences & variations net of an allocation of the original cost.

27

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

11.	FREEHOLD PROPERTY	Land	Building	Total	Total
				31 March	31 March
				2025	2024
		£	£	£	£
	Cost
	At 31 March 24	7,800	390,626	398,426	398,426
	Additions	-	-	-	-
		-------------	---------------	---------------	---------------
	At 31 March 2025	7,800	390,626	398,426	398,426
		======	=======	=======	=======
	Depreciation
	At 31 March 24	-	40,405	40,405	32,323
	Charge for period	-	8,082	8,082	8,082
		-------------	---------------	---------------	---------------
	At 31 March 2025	-	48,487	48,487	40,405
		======	=======	=======	=======
	Net Book Value
	At 31 March 2025	7,800	342,139	349,939	358,021
	At 31 March 2024	7,800	350,221	358,021	366,103

The parts of the Trust’s office building that are currently used as residential could be taken back into the Trust’s use at short notice. The Trust is unable to reliably determine the fair value of the resident element in isolation from the rest of the land and buildings. For this reason, the historic construction cost of the extension completed in 2013 is depreciated in a straight line over 50 years.

12.	ESTATE WORKS	31 March 2025	31 March 2024
		£	£
	Cost
	At 31 March 2024	241,511	241,511
	Additions during the period	-	-
		---------------	---------------
	At 31 March 2025	241,511	241,511
		=======	=======
	Depreciation
	At 31 March 2024	238,465	235,418
	Charge for the period	3,046	3,047
		---------------	---------------
	At 31 March 2025	241,511	238,465
		=======	=======
	Net Book Value
	At 31 March 2025	-	3,046
		========	========
	At 31 March 2024	3,046	6,093
		========	========

28

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

13.	PROPERTY INVESTMENTS	31 March 2025	31 March 2024
		£	£
	Cost
	At 31 March 2024	5,237,500	4,340,000
	Additions	424,462	921,869
	Revaluation	(6,962)	(24,369)
		-------------------	-------------------
	At 31 March 2025	5,655,000	5,237,500
		=========	=========

Property investments comprise 12 residential properties located on Hampstead Garden Suburb. These investments are let on assured shorthold tenancies. They are held for their rental income which matches the Trust's long term obligations to contribute towards shared costs from the Trust's own funds. See note 1 (g) for the Trust's policy on valuation of investments.

	valuation of investments.
14.	INVESTMENTS	31 March 2025	31 March 2024
		£	£
	Cash held on short term deposit	-	265,134
		========	========
15.	DEBTORS
		31 March 2025	31 March 2024
		£	£
	Management income owed to the Trust	359,401	240,785
	Other debtors	2,185	2,185
	Prepayments and accrued income	81,524	53,639
		-----------------	-----------------
		443,110	296,609
		========	========
16.	CREDITORS: amounts falling due	31 March 2025	31 March 2024
	Within one year	£	£
	Trade Creditors	98,936	57,596
	Accruals and deferred income	24,665	52,641
	Other Taxation and Social Security	15,105	15,539
	Other creditors	54,226	46,397
		-----------------	-----------------
	Sub total	192,932	172,173
	Refund of Management Charge	83,338	138,196
		-----------------	-----------------
		276,270	310,369
		========	========
	Deferred income	31 March 2025	31 March 2024
		£	£
	Brought forward	13,478	29,561
	Released in the period	(13,478)	(29,561)
	Deferred in the period	-	13,478
		-----------------	-----------------
	Carried forward	-	13,478
		========	========

Deferred income represents billing in advance.

29

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

17. FREEHOLD SCHEME OF MANAGEMENT 31 March 2025 £ Surplus (83,338) Balance refundable to freehold charge payers for 2024/2025 83,338 ----------------- Funds carried forward at 31 March 2025 - ========	31 March 2024
	£
	(138,196)
	138,196
	-----------------
	-
	========

18. INDEMNITY INSURANCE

During the Year Ended 31 March 2025 the Trust paid £7,822 (Year ended 31 March 2024: £7,762) in respect of an insurance policy which indemnifies its trustees and officers against the consequences of any neglect or default on their part and protects the Trust from any loss arising from the neglect or defaults to its trustees or officers.

19. REMUNERATION OF THE TRUSTEES

No remuneration is paid to any of the Trust’s trustees (Year ended 31 March 2024: Nil). No trustees were reimbursed for expenses (Year ended 31 March 2024: Nil). There were no related party transactions during the period (Year ended 31 March 2023: none).

20. MEMBERS LIABILITY

The liability of members is limited by guarantee up to a maximum of £1 per member.

30

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

21. RESTRICTED FUNDS

RESTRICTED FUNDS
Year Ended 31 March 2025				Deficit or
				(Surplus)
	As at			belonging to	As at
	1 April	Income	Expenditure	Scheme of	31 March
	2024			Management	2025
	£	£	£	£	£
Management Charge for
Scheme of Management	-	962,377	(879,039)	(83,338)	-
Scheme of Management
compensation	137,900	-	-	-	137,900
	-----------------	-----------------	-----------------	-----------------	-----------------
	137,900	962,377	(879,039)	(83,338)	137,900
	========	========	========	========	========
Year ended 31 March 2024				Deficit or
				(Surplus)
				belonging to
	As at			Scheme of	As at
	1 April	Income	Expenditure	Management	31 March
	2023				2024
	£	£	£	£	£
Management Charge for
Scheme of Management	-	988,802	(850,606)	(138,196)	-
Scheme of Management
compensation	138,001	-	(101)	-	137,900
					-
	-----------------	-----------------	-----------------	-----------------	-----------------
	138,001	988,802	(850,707)	(138,196)	137,900
	========	========	========	========	========

The Management Charge for Scheme of Management fund shows the amount due to enfranchised freeholders after the costs of operating the Scheme of Management in the period have been ascertained in comparison to the estimated Management Charge for the period. The Scheme of Management compensation fund relates to the net amount (after legal fees were deducted and returned to the relevant funds) paid to the Trust in settlement for an unauthorised development. This fund is restricted by the terms of the Scheme of Management to be applied in subsequent years in the manner authorised by the Scheme of Management, which is made for the purpose of ensuring the maintenance of the character and amenities of Hampstead Garden Suburb. This fund is held in trust for the members of the Scheme of Management. The funds and any interest accruing is kept in a bank account separate to any other funds held by the Trust. Opportunities to invest monies from the Compensation Fund on projects to protect and maintain the character and amenity of the Suburb will be identified during 2025/6, for delivery in future years as resources allow.

31

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

22 (a). ENDOWMENT DESIGNATED FUND

Year Ended 31 March 2025

Year Ended 31 March 2025
	As at	Income	Expenditure	Transfers	As at
	1 April				31 March
	2024				2025
	£	£	£	£	£
Endowment Designated
Fund	59,992	477	-	-	60,469
	=========	=======	======	========	=========
Year ended 31 March	As at
2024					As at
	1 April	Income	Expenditure	Transfers	31 March
	2023				2024
	£	£	£	£	£
Endowment Designated
Fund	59,396	596	-	-	59,992
	=========	=======	======	========	=========

The endowment designated fund contains donations to support the Trust's ability to preserve the amenities and character of the Suburb in the long term; for that reason the Trust Council has determined that not more than half the fund's real growth in capital and income will be spent in any year.

22 (b). DESIGNATED FUND

Year Ended 31 March
2025	As at			Transfers &	As at
	1 April	Income	Expenditure	gains/losses	31 March
	2024				2025
	£	£	£	£	£
Designated Fund	3,382,191	-	-	-	3,382,191
	=========	=======	======	========	=========
Period ended 31 March	As at
2024				Transfers &	As at
	1 April	Income	Expenditure	gains/losses	31 March
	2023				2024
	£	£	£	£	£
Designated Fund	3,382,191	-	-	-	3,382,191
	=========	=======	======	========	=========

The designated fund was set up in 2008/2009 for the purpose of ensuring the long-term future of the Trust and the Suburb. The designated fund represents the investments of the Trust which it is intended shall be conserved and grown so that the Trust can continue to meet its objects to preserve the character and amenity of the Suburb. In line with its Reserves and investment Policy, the Trust uses the revenue from the sale of assets to purchase investment properties, the income from which is set against the Trust’s own financial obligations to the Scheme of Management. The higher than anticipated income from asset sales in the Year Ended 31 March 2024 allowed the Trust to purchase one new investment properties in the Year Ended 31 March 2025. Similar good performance in the Year Ended 31 March 2025 will allow the Trust to purchase a further property in 2025/26, commensurate with the need to retain adequate funds against future risk and operating contingencies.

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Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE HAMPSTEAD GARDEN SUBURB TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

22 (c). DESIGNATED FUNDS TOTAL

	Year Ended 31 March
	2025	As at				As at
		1 April	Income	Expenditure	Transfers	31 March
		2024				2025
		£	£	£	£	£
	Designated Funds Total	3,442,183	477	-	-	3,442,660
		=========	=======	======	========	=========
	Year ended 31 March	As at
	2024					As at
		6 April	Income	Expenditure	Transfers	31 March
		2023				2024
		£	£	£	£	£
	Designated Funds Total	3,441,587	596	-	-	3,442,183
		=========	=======	======	========	=========
23.	ANALYSIS OF NET ASSETS	BY FUND
	Fund balances at 31 March 2025		General	Designated	Restricted	Total
			Fund	Funds	Funds	Funds
			£	£	£	£
	Fixed assets		2,462,184	3,442,660	137,900	6,042,744
	Cash on short term deposits		-	-	-	-
	Net current assets		1,654,907	-	-	1,654,907
			--------------------	--------------------	----------------	----------------------
			4,117,091	3,442,660	137,900	7,697,651
			=========	=========	=======	==========
	Fund balances at 31 March 2024		General	Designated	Restricted	Total
			Fund	Funds	Funds	Funds
			£	£	£	£
	Fixed assets		2,322,232	3,177,050	137,900	5,637,182
	Cash on short term deposits		-	265,133	-	265,133
	Net current assets		1,416,132	-	-	1,416,132
			--------------------	--------------------	----------------	----------------------
			3,738,364	3,442,183	137,900	7,318,447
			=========	=========	=======	==========

33

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

THE FOLLOWING PAGE (NO.35) DOES NOT FORM PART OF THE STATUTORY REPORT & ACCOUNTS

34

Docusign Envelope ID: 4D9C48EE-E774-4038-88FE-9D0BADE19887Docusign Envelope ID: 6BAE379B-5FAE-450F-B4F4-ED04AB0F0FB6

			General	Management	Year	Year
			Fund,	Charge	Ended 31	Ended 31
Expenditure items	Total		Designated		March	March
			&		2025	2024
			Restricted		Cost per	Cost per
			Funds		charge	charge
		£	£	£	£	£
Staff costs:	760,322		91,239	669,083	165.45	149.91
Staff salaries inc. PAYE & NI, contract and
temporary staff, employee and volunteer
expenses, training costs
Premises costs:		44,236	5,308	38,928	9.63	10.39
Office rent, utilities, telephone, Council Tax,
repairs and renewals, cleaning etc.
Administrative costs:		80,091	9,721	70,370	17.40	19.06
Insurance (except for trustees), office equipment,
printing, postage & stationery, public relations,
bank charges, depreciation
Governance costs:		16,452	1,974	14,478	3.58	3.19
Trustee insurance etc.
Projects and amenities costs:	333,096		271,830	61,266	15.15	16.20
Maintenance of amenity areas and other projects
costs
Legal costs:		50,490	41,091	9,399	2.32	2.07
Other professional costs:		14,852	11,405	3,447	0.85	5.36
Arboriculturist, human resources, valuation and
other advice
Audit costs:		13,715	1,646	12,069	2.98	4.03
	-------------------		-------------------	------------------	-------------------	-------------------
EXPENDITURE
	1,313,254		434,214	879,040	217.36	210.21
Less:
Income from fees on freehold applications				(83,532)	(20.61)	(25.10)
Legal costs recovered				(220)	(0.05)	(0.12)
				------------------	-------------------	-------------------
NET COST
				795,288	196.70	184.99
				------------------	-------------------	-------------------
INCOME
Management Charges including in-year enfranchisers				878,625
				-----------------	-----------------	-----------------
Balance of Management Charges to be (charged)	credited	to Freeholders		83,337	20.61	35.07
				========	========	========

At 1 April 2024, 4039 Management Charges payable. At 31 March 2025, 4048 Management Charges payable.

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