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2025-03-31-accounts

Annual report and financial statements 2024/25 Selwood Qfft Housing

Contents

Page
Directors, executive officers, advisors, and bankers 1
Letter from the chair 2
Group strategic report including the operating and financial 5
review for the year ended 31 March 2025
Independent auditor’s report 37
Consolidated and company statement of comprehensive
income		 41
Consolidated and company statement of financial position 42
Consolidated statement of changes in reserves 43
Company statement of changes in reserves 44
Consolidated statement of cash flows 45
Notes forming part of the financial statements 46

Directors, executive officers, advisors, and bankers

The directors of the Selwood Housing Group who were in office during the year and up to the date of signing the financial statements were:

Group Board of Directors

Sheila Lewis * to 31/12/24 Stella Shepherd ** Hannah Jones Koo Chai Young Li Mow Ching *** chair Samuel Whatley from 01/12/2024 Maureen Robinson from 02/12/24 *Chair to 31/12/24 ** vice chair *** chair from 01/01/25

Lisa Nicholls to 01/10/24 Chris Butters Richard Yates Nicola Setchell to 01/05/24 Philip Whitehead David Hobdey from 02/12/24

Executive officers

Group chief executive Group chief financial officer Group transformation and people director Group operations director Group development director

Barry Hughes Mark Mayler Ria Bristow Verena Buchanan Paul Walsh

Registered office

Bryer Ash Business Park Bradford Road Trowbridge Wiltshire BA14 8RT

Advisors and bankers

Independent Beever and Struthers Internal auditors TIAA Limited
auditor 20 Colmore Circus Artillery House
Queensway Fort Fareham
Birmingham Newgate Ln
B4 6AT Fareham
PO14 1AH
Principal funder Nationwide Building Society Principal bankers Lloyds Bank
Kings Park Road 64 Fore Street
Moulton Park Trowbridge
Northampton Wiltshire
NN3 6NW BA14 8EU
Principal Trowers & Hamlins Capsticks Solicitors Anthony Collins
legal advisors The Senate LLP Solicitors
Southernhay Gardens 1 St George’s Road 143 Edmund Street
Exeter London Birmingham
EX1 1UG SW19 4DR B3 2ES

Charity commission registration No. 1141124 Company limited by guarantee - registration No. 4168336 Registered with the Regulator of Social Housing – registration No. LH4097

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Selwood Housing Society Ltd

Welcome from the chair of our board of directors

Overview

It’s a sincere pleasure to introduce our 2024-25 annual report and financial statement in my first year as Chair.

Over the last 12 months, we have continued to see rapidly increasing expectations placed on housing associations from both government and customers. These are set against an equally challenging economic environment with a period of high inflation pushing up our operating costs and higher interest rates increasing our borrowing cost. Below inflation customer rent increases this year added further stress to our financial model.

Despite this difficult external environment, our people have worked hard supporting customers and delivering robust performance. Provisional results from the second year of tenant satisfaction measures are a testament to this. We scored highly across both customer satisfaction and performance measures, placing us in the top 10% of our peer housing associations.

Investing in our homes

Our energy improvements programme continued with the retrofitting of our least energy efficient homes making them warmer, healthier, and more affordable for customers to heat. Since the programme launched in 2023, we have successfully upgraded 145 homes. The award of £2.5 million in March 2025 from the government’s Warm Homes: Social Housing fund (WH:SHF) Wave 3, alongside our match funding means we can schedule energy upgrades to a further 214 homes.

In 2024, we made the difficult decision to demolish several blocks of flats across two sites in Warminster when our investigations revealed that the scope and cost of repairs to the blocks was larger than anticipated and that a programme of repairs and replacement was no longer possible. We supported all fifty customers living in these flats to find new homes.

Following a consultation with residents, we announced redevelopment plans for the site that will provide up to 18 new homes for up to 60 customers.

Maintaining the standards of our existing customer homes remains a priority and in the last 12 months our teams installed 80 new bathrooms and a record 400 new kitchens!

Our teams also achieved an above target response time for repairs in customer homes completing 99.6% of emergency repairs and 85.2% of non-emergency repairs within target.

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Selwood Housing Society Ltd

Building new homes

New data published by the National Housing Federation, Crisis and Shelter warns of the critical need to boost investment in social housing. The housing crisis is worsening rapidly with some local authority waiting lists now exceeding 100 years for a familysized social home.

We are committed to playing our part as this crisis continues to escalate. In the last year, we’ve built 125 new properties, providing stable homes for up to 458 people. This is in addition to the more than 378 households we welcomed to our existing homes.

With a further 500 homes in the pipeline across twenty locations, we are making substantial progress towards our plans to build 1,700 more local affordable homes by 2034. Energy efficiency remains a priority with 100% of our new homes achieving EPC ‘B’ or above.

Despite the challenging market, we also achieved our joint highest shared ownership sales helping 64 families on to the housing ladder and providing a surplus of £2M to reinvest.

Supporting our customers and communities

In September, we invited customers to take part in our customer conversation survey to find out their priorities for Selwood Housing. Of almost 1200 responses received, 84% of customers said they felt safe in their neighbourhood and most felt they had a well-maintained home with a repairs appointment system that worked well for them.

Almost a quarter said they found it difficult to heat their homes due to the cost of energy bills, so we were pleased to secure £25,000 from Wiltshire Council’s Household Support fund. This funding enabled us to provide support to customers in 250 low-income households struggling with essential costs. Helping our customers maintain their tenancies has allowed us to minimise rent arrears to 0.6%, one of lowest in the social housing sector.

Throughout the year, we also invited customers to share their ideas about ways to improve our services and decision making. We offered at least one involvement opportunity every month with customers sharing their voices on services and policies including our development strategy, contractors’ code of conduct, antisocial behaviour, succession policy and Selwood Housing’s values.

Our Stronger Communities fund gave £30,000, plus an additional £233,000 in matchfunding from local and national grants, to support twenty projects run by local charities and community groups. This included renovating outdoor nursery spaces, a community pantry and funding courses to help young people transition into independent living.

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Selwood Housing Society Ltd

As part of our Priority Neighbourhoods initiative, we completed the installation of CCTV cameras on Westleigh Estate in Warminster, helping to make the estate a safer and more welcoming place for all its residents. The project, in partnership with Wiltshire Council, Warminster Town Council and Wiltshire Police, was in response to concerns raised by customers about antisocial behaviour and safety.

Supporting our people to deliver services

Thanks to the hard work and commitment of our people who continue to deliver in an extraordinarily complex environment, our service delivery and financial performance results for the year were excellent.

Our teams successfully delivered a range of complex improvement projects including migrating our IT infrastructure to the cloud, the launch of the first phase of Dynamics, our new housing management platform, plus the implementation of contracts with new building material suppliers. These will help increase our efficiency and deliver procurement savings in the region of £1m annually, releasing funds to invest in new and improved homes for the future.

With our staff consistently demonstrating their passion and dedication to our customers, we continued to invest in training, development and extending professional skills.

In June, we held an in-person all staff event where we shared our plans and thanked our people. This was also an opportunity for staff to review Selwood Housing’s values, which define and underpin how we work. As a result of their suggestions and further input from customers, we agreed new values to take us forward. We also launched our Big Welcome, a new week-long induction to help new starters settle in and understand the organisation and their roles faster.

Our staff turnover rates improved significantly this year, reducing from 25% to 15% at year end. We were also pleased to retain our Investors in People Gold, increase our monthly staff survey score average and reduce sickness levels.

Looking forward

Our recently published corporate strategy for 2025–2028 outlines the targets we seek to achieve in the areas that are most important to our customers - repairs, safety, and the environmental efficiency of our homes.

There are considerable challenges ahead, but I am confident that our people will continue to demonstrate exceptional commitment and tenacity to deliver quality homes and services for our customers.

Koo Chai Young Li Mow Ching Chair

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Selwood Housing Society Ltd

Group strategic report including the report of the board for the year ended 31 March 2025

The group board presents its report and audited consolidated financial statements of Selwood Housing Society Limited and its subsidiary undertakings, for the year ended 31 March 2025.

Selwood Housing Group

Selwood Housing Society Limited (Selwood Housing) is the parent company of Silcoa Limited, Cottsbury Homes Limited, and Selwood DevCo Limited.

Selwood Housing is a company limited by guarantee governed by its articles of association. It is registered with the Charity Commission and the Regulator of Social Housing (RSH) and administered by a board of non-executive directors (the board).

Principal activities

The principal activities of the group are the development and provision of affordable housing, incorporating the letting, management and maintenance of dwellings for people in housing need and the provision of support services.

Overview of the business

The purpose of Selwood Housing is to develop, manage and maintain quality affordable housing and provide support services for the benefit of people in housing need.

We manage and maintain homes across Wiltshire, Bath and North East Somerset, and the parts of the county of Somerset which are within one hour’s drive of our head office in Trowbridge. We have a strong local presence and involvement with our local communities. We own 7,291 properties and are the largest social landlord in the West of Wiltshire.

The Regulator of Social Housing refreshed their assessment of Selwood’s compliance with the Governance and Financial Viability Standard in December 2024 which resulted in Selwood Housing retaining our G1 governance rating and V2 viability rating.

We have an active programme to develop new homes in our areas of operation, offering a range of affordable homes that meet the needs identified by our local authority partners. In addition to substantial investment in new homes, we are continuing a large programme of improvements to our existing properties.

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Overview of the business continued

We are committed to neighbourhoods, customers and excellence and we undertake a wide range of community activities. We provide lifeline services to our tenants.

Selwood Housing has three commercial subsidiaries, set up for specific purposes. They are all wholly owned by Selwood Housing and the profits they make stay within the group to support Selwood Housing’s charitable objectives.

Silcoa Ltd was our property repairs and improvement company which was integrated into Selwood Housing on the 1 July 2021. No activity remains in the company and so is now dormant.

Cottsbury Homes Ltd is a company that develops homes for market sale. It is not currently active.

Selwood DevCo Ltd is the owner of photovoltaic (PV) panels which are installed on 115 properties owned by Selwood Housing. The company also develops some land led schemes to golden brick stage.

Objectives and strategy

The board has referred to the Charity Commission’s general guidance on public benefit when reviewing Selwood Housing’s aims and objectives and in planning our future activities. The board has considered how planned activities for the year will contribute to the aims and objectives they have set.

Our strategy is underpinned by four guiding principles:

These principles will guide our work over the coming years. Our corporate plan develops these into the key areas for us to develop in the next few years.

Our key challenge is:

“To be able to deliver quickly on a wide range of complicated, changing targets to meet rising expectations from customers and others”

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Objectives and strategy continued

The key areas for us in the next few years are:

The specific targets for 2025/26 are:

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Group strategic report including the report of the board for the year ended 31 March 2025 continued

Objectives and strategy continued

Selwood Housing’s values

Our recently updated values, following reviews with our customers and our staff are:

Operational performance

Financial review

The group turnover in the year was £57m (2024: £53m). This represents an increase of 8% (2024: increase of 15%).

Operating costs are higher than last year at £40m (2024: £38m), this is mainly due to inflationary increases and the completion of some large, planned programmes of work in year. Operating costs include depreciation charges of £9.0m (2024: £9.0m), a key accounting estimate. No impairment losses have been recognised in the year. In 2024 £1m was recognised in respect of two blocks of flats in Warminster that the Board had approved for demolition.

The surplus from the sale of properties was in line with last year at £3.4m (2024: £3.4m) due to the continued disposal programme in line with our current asset management strategy. The properties sold included a mix of right to buy, right to acquire, staircasing and open market sales. Selwood Housing remains committed to considering the suitability and efficiency of our properties.

The overall surplus for the Group in the year is £7.4m, (2024: £6.8m), higher than last year despite increased operational and interest costs.

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Operational performance continued

Selwood Housing carries fixed assets in its financial statements at cost (not valuation). Selwood Housing’s residential property asset base at cost was £588m as of 31 March 2025 (2024: £562m). This increase was a combination of the addition of newly developed homes and works to existing properties.

The pension fund shows an unadjusted net asset surplus of £8.32 million but has been restricted to £nil (2024: liability £nil), as the recoverability of this asset would require a right to reduce employer contributions or to request a refund from the fund. Neither of these options are available.

The existing use value – social housing (EUV-SH) of Selwood Housing’s properties was estimated to be in the region of £466m at 31 March 2025 (2024: £471m). The directors consider there is no impairment following an impairment review conducted as described in the notes to these accounts.

Selwood Housing finances its property assets through a loan facility of £94.1m (2024: £101.8m) made available by Nationwide Building Society, a £50m (2024: £50m) facility from Affordable Housing Finance Plc (AHF), a £55m (2024: £55m) facility from Lloyds Bank Plc and a £20m facility from MORhomes Plc. At 31 March 2025 £74.1m (2024: £81.8m) of the Nationwide facility had been drawn down. This left £20m (2024: £20m) available from Nationwide. £50m (2024: £50m) of the AHF funding had been drawn down at year end, £49.5m had been drawn from the Lloyds Bank facility (2024: £32.5m) and £20m from Morhomes Plc (2024: £20m)

The board of Selwood Housing Group has adopted a treasury management policy statement. This sets out the group’s policies concerning all treasury management activities, including managing cash flow, borrowing, investing, and hedging. In the financial year net cash inflow from operating activities of £23m (2024: £15.2m) helped to fund net cash spend of £18.9m (2024: £26.2m) on developing new homes before receipt of social housing grant.

In the 2024/25 corporate plan Selwood Housing had several key areas of focus. Our achievements against each of those areas during 2024/25 include the following:

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Operational performance continued

Key risks

Financial risk management policy

Selwood Housing’s operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk, interest rate risk and covenant breach risk.

The main credit risk for Selwood Housing relates to non-payment of rents from tenants. We actively manage arrears ensuring tenancies are affordable for new tenants. We provide clear payment terms, a structured process of credit control and regular review of individual tenants' accounts.

The risk that Selwood Housing does not have sufficient liquid assets to carry on its activities is managed through active cash flow monitoring and forecasting.

Interest rate risk for Selwood Housing is particularly relevant regarding its loan facilities with Nationwide Building Society and Lloyds Bank plc. Selwood Housing has in place a risk management programme and treasury management strategy that seeks to limit the adverse effects of interest rate fluctuations on its financial performance.

Covenant performance is monitored throughout the year by the board.

Selwood Housing is not directly exposed to commodity price or exchange rate risk as a result of its operations.

The group maintains effective control over the risks in the business using an online tool, Decision Time. The risk register for Selwood Housing and all its subsidiaries is regularly reviewed by the board.

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Key risks continued

The Selwood Housing risk register identifies the most significant risks to the business, the causes of these risks, controls that are in place and mitigating actions that are being taken to reduce the impact and/or probability of those risks. The register covers both strategic and operational risks. The major strategic risk areas and mitigating controls identified on the risk register are:

Risk Area Key Controls/Actions
Lack of financial resilience to
withstand changing
socioeconomic environment		 •
Budget and business plan approved by the board and reported on regularly.
•
Financial plan stress tested with various scenarios.
•
Value for money strategy with regular review.
•
New contracts in place for key repairs and maintenance suppliers.
•
Contracts for supply of goods and services are regularly reviewed.
•
Identify and monitor appropriate benchmarking.
Landlord Health and Safety
– Failure to adhere to
legislative, regulatory and
best practice compliance
requirements		 •
Weekly reports to executive team meetings on all key compliance areas.
•
Quarterly reports to Group assets and development committee.
•
External audits carried out by independent bodies
•
Extensive training plans for all staff involved in health and safety activities.
•
Insurance cover of contractors obtained as part of contract negotiation and
set up and then monitored by assets team
Risk that people and culture
do not allow us to deliver
strategic objectives		 •
Executive portfolio board in place to prioritise projects and agree resource
allocation.
•
Project Brief and Business Case approval process in place.
•
Personal performance review process, incorporating skills and development
plans.
•
Management development and training in place.
•
Professional development for relevant staff.
•
Flexible working policy determines approach to hybrid working.
•
Training and development programmes for digital skills.
New homes delivery does
not meet corporate plan
targets		 •
Development strategy approved by the board and progress reviewed on a
quarterly basis by Group assets and development committee.
•
Comprehensive monitoring and reporting of progress with the development
programme.
•
Sites, suppliers, and key materials reviewed daily.
•
Regular dialogues with relevant local authorities, agents, developers, and
landowners to seek future opportunities.
•
Designand quality specificationsmeet the SelwoodHousing strategy.
Asset management –
providing homes that are
decent, warm and meet
required need		 •
Asset management strategy and plan reported to Group Asset and
Development Committee (GADC) on a quarterly basis.
•
Provision for expenditure in financial plan to get properties to EPC C by 2030
and net zero carbon by 2050.
•
Internal stock condition survey target in place.
•
Budgeting and forecast process and subsequent monitoring.
•
Contract management and procurement processes in place.
•
Damp and mould action plan monitored by GADC.
•
Internal stock condition survey target of 205 per annum
Risk of Cyber security attack •
ICT and data protection policies in place.
•
Internal periodic reviews to ensure appropriate security levels in place.
•
Disciplinary procedures in place.
•
New 24/7 security operations centre in place with cloud partners to improve
monitoring and resilience
•
Virtual network firewalls strengthened to prevent generic attacks
•
Business continuity plan includes planto address cyber risks.

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Environmental, Social & Governance (ESG) matters

Selwood Housing is dedicated to achieving its environmental, social, and governance (ESG) objectives by providing affordable homes both presently and in the future. We ensure that these homes meet the highest possible environmental standards while complying with our regulatory and governance requirements. In 2024, Selwood issued its third ESG report, using the newly revised version 2 of the Sustainability Reporting Standard (SRS). This report aligns with our key strategies for constructing new homes and managing our existing properties.

Environmental

Selwood Housing aims to ensure all homes meet SAP C standard by 2030, integrating low carbon and renewable technologies to achieve net-zero carbon targets by 2050. We build new properties to high environmental standards and invest in improving existing ones. Our key performance indicator is the average SAP rating of all housing properties, measuring their environmental performance.

Streamlined Energy and Carbon Reporting

Selwood Housing has created a Streamlined Energy and Carbon Reporting (SECR) statement to comply with the 2019 SECR Regulations. This third-party verified report compares current emissions to the previous financial year for annual reporting, with all emissions shown as carbon dioxide equivalents (CO2e) rounded to two decimal places.

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Energy efficiency action statement

Reported emissions and energy use data for 1st April 2024 – 31st March 2025 Reported emissions and energy use data for 1st April 2024 – 31st March 2025 Reported emissions and energy use data for 1st April 2024 – 31st March 2025
Current reporting year 1st April Previous reporting year 1st April
2024 – 31st March 2025 2023 – 31st March 2024
Emissions from combustion of gas 200.26 tonnes CO2e **214.20 tonnes CO2e **
tCO2e (Scope 1) [mandatory] 12.40 tonnes CO2e office usage 11.25 tonnes CO2e office usage
14.08 tonnes CO2e communal areas 13.75 tonnes CO2e communal areas
173.78 tonnes CO2e communal heating 189.20 tonnes CO2e communal heating
systems systems
Emissions from combustion of fuel for 357.06 tonnes CO2e **311.08 tonnes CO2e **
transport purposes (Scope 1) 357.06 tonnes CO2e DLO
[mandatory]
Emissions from business travel in 32.22 tonnes CO2e **31.78 tonnes CO2e **
rental cars or employee-owned
vehicles where company is responsible
for purchasing the fuel (Scope 3)
[mandatory]
Emissions from purchased electricity 166.29 tonnes CO2e **172.94 tonnes CO2e **
(Scope 2, location-based) 12.79 tonnes CO2e office usage 17.17 tonnes CO2e office usage

[mandatory]		 153.50 tonnes CO2e communal areas 155.77 tonnes CO2e communal areas
See below for transmission and See below for transmission and
distribution losses distribution losses
Total gross CO2e based on above - **755.82 tonnes CO2e ** **730.00 tonnes CO2e **
[mandatory]
Energy consumption used to calculate Gas: 1,405,612.30 kWh Gas: 1,170,970 kWh
above emissions: kWh [mandatory] – Electricity: 806,139 kWh Electricity: 835,169 kWh
optional to provide separate figures for
Transport fuel: 1,405,612 kWh		 Transport fuel: 1,301,138 kWh
gas, electricity, transport fuel and Business travel: 134,012 kWh Business travel: 130,661 kWh
other energy sources Total: 3,437,683.82 kWh Total: 3,437,938 kWh
Intensity ratio: tCO2e gross figure 119.02 kg CO2e per home managed 110.89 kg CO2e per home managed
based on mandatory fields above (exc. office emissions) (exc. office emissions)
[mandatory]
14.50 Office intensity: kg CO2e per Office intensity: 17.22 kg CO2e per
m2 m2
Methodology [mandatory] SHIFT methodologySECR Reporting SHIFT Environment
Using DEFRA (2024) Conversion Factors in line with Environmental
Reporting Guidelines (2019) as the majority of the financial year falls
into the calendar year 2024. Comparison data from the previous
year’s SECR is using DEFRA 2023 Conversion Factors.

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Energy efficiency action statement continued

Emissions from purchased electricity Emissions from purchased electricity Only reporting on location based Only reporting on location based Only reporting on location based
(Scope 2, market-based factor): tCO2e
[optional]
Emissions from generation of **14.70 tonnes CO2e ** **14.96 tonnes CO2e **
electricity that is consumed in a Transmission and distribution Transmission and distribution
transmission and distribution system (T&D) losses associated with UK (T&D) losses associated with UK
for which the company does not own electricity electricity
or control (Scope 3) / tCO2e
[optional]
Emissions from employee business 32.22 tonnes CO2e 31.78 tonnes CO2e
travel for which the company does not 32.22 tonnes CO2e employee vehicles
 31.78 tonnes CO2e employee vehicles

own or control (Scope 3) / tCO2e		 0.00 (Nil) tonnes CO2e public 0.00 tonnes CO2e public transport
transport
[optional]
Emissions from leased assets, The regulated emissions from the The regulated emissions from the
franchises, and outsourced activities independently heated homes we independently heated homes we manage
(Scope 3) / tCO2e [optional] manage far outweigh our operational
far outweigh our operational emissions and
emissions and are therefore reported are therefore reported here on a voluntary
here on a voluntary basis. Our SHIFT basis. Our SHIFT methodology estimated
methodology estimated emissions at emissions at 16,041.41 tonnes in total, or
13,251.38 tonnes in total, or 2.19 2.47 tonnes per home managed.
tonnesper home managed.
Total gross Scope 3 emissions / 13,298.29 tonnes CO2e 16,088.15 tonnes CO2e
tCO2e [optional]
Total gross Scope 1, Scope 2 14,021.90 tonnes CO2e 16,786.38 tonnes CO2e
[location / market] & Scope 3
emissions / tCO2e [optional]
Additional intensity ratio: tCO2e 2.28 tonnes per home managed for 2.55 tonnes per home managed for total
net figure / e.g., £100,000 total Scope 1, 2 and 3 emissions Scope 1, 2 and 3 emissions recorded
revenue recorded
[optional]
Third Party verification [optional] SHIFT Environment

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Energy efficiency action statement continued

During the period 1st April 2024 to 31st March 2025, we installed:

Some of the work in the upgrades listed above form part of the programme of works that is utilising the £1.4m Social Housing decarbonisation funding (SHDF) that was secured last year to deliver fabric first decarbonisation of our properties that have an EPC rating below EPC C. During the year we successfully secured £2.5m of new funding through the Warm homes social housing fund which we will match to extend our programme over the next three years.

Social

Affordability

The Valuation Office Agency sets the Local Housing Allowance (LHA) affordability criteria at the 30th centile point between what, in the local rent officer’s opinion, are the highest and lowest non-exceptional rent in a Broad Rental Market Area. These statistics are used as a reference point for housing benefit and are a good indication of rent levels which are affordable in an area. Our valuer’s have compared our rents with the average sector rent and LHA in the same localities. Selwood Housing’s rents are demonstrably lower than those of other housing associations in the same area and are affordable when compared with the local housing allowance.

Customer Involvement & Communities Team

The I&C team’s work continues to evolve as the work it delivers is key to Selwood Housing meeting the requirements of the Transparency, Influence & Accountability Standard introduced by the Regulator for Social Housing in April of this year. Our key aim is to bring clear customers’ voices and views into service design through inclusive, efficient, and effective methods whilst flexibly responding to the needs of the business. This has been a strong year, building on our foundations as a team in 2023. We have renewed our team’s strategy which we are taking to Board in July. We have involved customers during the recent revision. This report highlights some of the major achievements and details how we are meeting our regulatory requirements.

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Scrutiny

The Marketing and Communications team have now acted on all actions taken forward from the scrutiny team’s review into operational communications. The results include:

Their follow-up review into Damp & Mould services was approved by board in July 2024. The scrutiny team then carried out a review to inform the new Asset Management Strategy and focused on Planned Programme prioritisation. The team reported their findings to Board in March 2025. The recommendations focused more on how we communicate to customers throughout the process. All seven recommendations were agreed by management, six have been completed and the final one has been scheduled. They have just started their new review into General Needs Caretaking.

Four new members have joined during 2024-2025 and have all undergone induction and mandatory training. The team have continued to develop their knowledge and skills through TPAS membership and courses and sent delegates to three of the regional & national Tenant Engagement Conferences in May, July and October, giving them an opportunity to network with other scrutiny members from across the country.

Working with the business performance & insight team we produce an information pack to share with the scrutiny team ahead of quarterly business meetings, so that they have the key information on ‘Rant & Rave’ transactional customer surveys, Tenant Satisfaction Measure data and finance & performance ahead of the meeting presentations.

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Together with Tenants

Selwood Housing adopted the National Housing Federation’s Together with Tenants Charter in 2022. In April 2024 we agreed a new action plan with the scrutiny team and managers across the business as to how we meet the charter’s commitments. We have added actions against the new 7[th] commitment of Equality, Diversity & Inclusion. Ahead of each quarterly business meeting the I&C team provide our scrutiny team with written updates on the progress of each action within the plan. This allows them time to reflect, discuss and bring questions/challenges to the quarterly business meeting. Each member takes ownership of monitoring one or two commitments.

Customer involvement

We now ensure that all creations or rewrites of customer-facing policies and strategies incorporate customer voice. We have developed strong working relationships with heads of service and are increasing the understanding of what we do and the importance of hearing and considering the needs and views of those who live in our housing.

Over 2024-2025 we have worked on one strategy, ten policies and four customer experiences plus a code of conduct and fire safety assessment. Customers have also helped us revise our company values. These have been delivered through a mixture of in-person and online focus groups, community pop-ups, digital questionnaires, surveys and opinion polls with a total of 195 participants.

Communications - ‘Warm List’ and newsletter

Our Customer Involvement newsletter is sent to the I&C ‘warm list’ which is a list of customers who have signed up to hear more about involvement. It contains details of all forthcoming involvement opportunities plus updates on recent projects which we call our ‘you said, we did’ reporting. This maintains regular engagement, interest and recognises the value of our volunteers and the importance Selwood Housing puts on hearing their customers’ voices. We have started trialling a quarterly postal newsletter to 227 customers and monthly electronic newsletters to 1440 customers with open rate of above 50%.

Customer Conversation 2024

This is our household survey that is carried out every three years, aimed at understanding our customers priorities and responses to a series of questions, the results of which are then used to shape our thinking and influence our services and policies. We sent out 8593 copies of the survey: one to each individual tenant (including joint tenants) and to all shared ownership customers. We received 1,192 responses (789 online and 403 postal returns).

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Customer Conversation 2024 continued

The survey asked for feedback on our main service areas, and we had a response rate of 14% providing a solid level of representation. The margin of error, using a confidence level of 95% and based on 1192 responses received out of a population of 8593 surveys sent out, is +/- 2.63%. Most respondents (over 80%) were aware of customer involvement opportunities, with nearly 10% of the remainder keen to know more. We are currently monitoring an action plan based on customers’ responses.

Equality, Diversity & Inclusion

We have started collecting EDI information anonymously from involved customers who are willing to share their details. This helps us benchmark the diversity of those we are reaching, so that we can improve engagement in demographics not attending. We are part of the new EDI project and recently used the Customer Conversation 2024 to collect new & updated data so that we can better understand their needs and direct our services in line with new consumer standards.

Complaints Forum

The complaints’ staffing team has grown and taken on full ownership of the customer forum. The forum was established in 2022-2023 following a recommendation from a scrutiny review. The I&C team worked with the complaints manager to create the forum and its processes. We continue to help with advice, promotion and the recruitment of new customers. There are six members that meet quarterly to review five recently closed complaints and score how they were managed against set criteria.

Sheltered Forum

We also helped the initiation and set-up of a new Sheltered Housing Forum, as with the complaints’ forum, the sheltered staffing team have taken on facilitation of this.

Decarbonisation project – resident engagement:

We supported the bid writing for Wave 3 of the Decarbonisation project.

Warminster Rehousing

We supported the customer consultation stage with advice, drop-ins, 121 visits and managing phone & email correspondence.

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Communities

We supported the legacy project from the Warminster Priority Neighbourhoods’ project of 2023-2024. We led on applying for grants and secured £15,000 from the Area Board, the Police & Crime Commissioner and the Town Council. These monies have funded a joint project with Wiltshire Police to install & manage CCTV in one of our neighbourhoods with high criminal activity and anti-social behaviour.

We have renewed our funding commitment to local charity, Trowbridge Futures, for another three years at the same amount. This £30,000 contract helps fund a neighbourhood connector who is working across our three main housing estates in Trowbridge. They facilitate and promote a kindness cafe, veterans’ group, cookery sessions and a community fridge which feeds 180 people a week on one of our larger estates. They have been hosting pop up health clinics with the NHS, helping to reach those who struggle to access public services for a variety of reasons such as social isolation and mobility issues. Visitors to the pop-up clinics have received vaccinations, blood pressure readings and general health advice including diet and nutrition. The team have been working with Wiltshire Council to host accessible and manageable fitness sessions and the demand from local residents has been high.

Stronger Communities Funding

During 2024-2025 we distributed £30,325 from our Stronger Communities Fund to enable 20 community projects across 8 towns & villages where we have our housing stock. We have recently held a customer focus group to inform the renewal of the Stronger Communities Funding Policy which is revised every 3 years.

We have worked with the procurement team to reinstall the social value clause in appropriate high value contracts of over £1 million. Contract Managers and Procurement now have a process in place to engage with the I&C team pre-award; payments will be made on an annual basis, on the anniversary of the contract’s commencement. This decision will guarantee ongoing funding to boost the Stronger Community Fund and allow us to continue supporting our communities. We have joined a local funding network to further promote the fund to a wider area of our housing stock.

As part of our application process, we continue to request details of total project cost, breakdown of all costs and how much of the project is self-funded. We also ask if they’re applying to other grant funders and what amount they’ve requested. In most cases, being approved for one grant will often unlock access to another grant, therefore helping secure more funding for the community. We only pay out once any necessary match-funding is confirmed so that we know the project is viable. We can then calculate how much money has been brought into our communities in total. Accumulatively these 20 projects secured an additional £233,596 in addition to the money donated from us, that was spent in our communities.

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Resident Support

Selwood Housing’s charitable donations were £28.5k (2024: £28.5k) during the year to 31 March 2025. In addition to this we allow various community groups to utilise two garages free of charge and we lease The Hub to Trowbridge Town Council for a peppercorn rent. We estimate the rental income foregone on these to be equal to donations of around £9.5k (2024: £9k).

Governance

Selwood Housing is fully committed to the principles of openness, accountability, and competence. We welcome and support the principal recommendations laid down in the National Housing Federation’s Excellence in Governance, Code for members (revised 2020). The code was reviewed and adopted by the board in December 2021. The board concluded that we are fully compliant with the code.

Staff wellbeing

Our ability to meet our objectives and commitments to tenants and other customers in an efficient and effective manner depends on the expertise, commitment, and enthusiasm of all our employees. We take seriously the need to be an employer that recruits high calibre staff, we then ensure they are motivated, skilled, and able to deliver for our customers and provide an excellent service. This is a guiding principle in our corporate strategy, as described above.

Selwood Housing provides information on its objectives, progress and activities through regular team meetings, staff briefings, CEO monthly updates and our staff forum. Selwood Housing seeks employees’ views on how to improve services and on matters of common concern through our monthly pulse survey. The executive team also take part in a monthly live question and answer session with all staff. The group supports the employment of a diverse workforce, both in recruitment and in the retention of employees.

Board and executive composition

At 31 March 2025 Selwood Housing’s board was made up of four females and five male directors. The senior management team was made up of three male and two female members.

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Committees of the group board

During the year the following committees were in operation:

All other matters including strategy, funding decisions, business planning and other major strategic decisions are considered directly by the full group board.

Board and executive directors

The group board and executive directors of Selwood Housing who served during the financial year are listed on page 1. The group board comprises of nine members, who are regarded as non-executive directors for legal purposes.

The board is responsible for the governance of Selwood Housing Group. Their role in practice may be summarised as:

Board members regularly participate in training and development to ensure they maintain and develop their skills and have a high level of awareness of current issues in the social housing sector.

Board members undergo a formal appraisal of performance on an annual basis. The format of the appraisal involves a review of everyone’s performance over the year and an assessment of training, skills, and development needs.

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Board and executive directors continued

Each board member is expected to take responsibility for fulfilling their training plan while Selwood Housing Group is committed to ensuring that resources are in place to enable this. As part of the appraisal process the board also considers its collective effectiveness in delivering the aims and objectives in the corporate plan.

At 31 March 2025, the executive directors consisted of the group chief executive, the group chief financial officer, the group operations director, the group development director, the group transformation and people director.

Insurance policies indemnify board members and staff against liability when acting for Selwood Housing. These policies were in force throughout the financial year and at the date of approval of the financial statements. The indemnity is a qualifying third-party indemnity.

Board members are recruited based on selecting skill sets, the demographic makeup and experience that are required for the existing board.

Candidates are short-listed by the interview panel made up of the group chief executive, two appropriate board members and the group transformation and people director against the board director specification, which is contained in Selwood Housing’s governance manual. Interviews are carried out by the interview panel and the best candidate for the role is selected. The procedure used is full, fair, and inclusive. Each new board member goes through a structured induction.

Remuneration

Board members are remunerated for their services and are entitled to claim out of pocket expenses such as travelling. Travel costs to and from Selwood Housing’s offices are reimbursed as a taxable benefit. Some board members choose not to reclaim their travel costs.

Payments to board members are shown in note 10 to the financial statements, which shows the actual payments in the financial year, the level of payments and the proportion which the total amount paid forms of Selwood Housing’s annual turnover.

Any changes in remuneration do not take effect until approved by the company in the general meeting and increases to board members’ remuneration do not take effect more frequently than once every three years.

The board decides the pay and benefits of the executive directors and agrees the terms on which the chief executive can set other staff salaries, within the agreed market pay based framework.

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The executive directors are either members of the Wiltshire Pension Scheme or members of the group personal pension plan, depending on when they joined the organisation. They participate in the scheme on the same terms as all other eligible staff. Selwood Housing contributes to the schemes on behalf of all eligible staff and does not offer alternative benefits such as cars.

There are no service contracts for executive directors. They are employed on similar terms to other staff, with a notice period of three months.

Reserves policy

Selwood Housing’s reserves are invested in its properties. They have been used to fund the development of new homes for letting to people in housing need and the improvement and replacement of components in existing properties. They provide working capital and help Selwood Housing to maximise its borrowing capacity. Selwood Housing sets a target for reserves in its 30-year business plan and ensures that actual reserves stay in line with the plan.

Regulatory standards

The board undertook a review of Selwood Housing’s compliance with the Regulator of Social Housing’s governance and financial viability standard in March 2025, and the board concluded that Selwood Housing complies with the standard.

Value for Money

Selwood Housing Group’s approach to value for money (VfM)

Value for money forms one of the key pillars of our principles and values as outlined in our corporate strategy:

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Value for money continued

Our VfM strategy was reviewed in 2024 and updated targets agreed with the board in October 2024.

The aims of our value for money strategy are:

Value for money for Selwood Housing includes considering:

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Value for Money continued

Value for Money Standard (VfM)

The Regulator of Social Housing (RSH) issued the VfM Standard in April 2018 which includes a requirement for registered providers to publish their performance against a series of common metrics with which to measure economy, efficiency and effectiveness as set by the Regulator. The table below compares our performance over the last three years with our Housemark peer group, the RSH global accounts performance and our targets for next year.

Performance Metric
2022/23
Actual
2023/24
Actual
2024/25
Target		 2024/25
Actual		 2025/26
Target
2023/24
Housemark
Median
2023/24
Sector
Median
*
Business health % efficiency
Operating margin
- Overall
18.1%
17.7%
18.1%		 19.5% 17.4%
19.0%
18.5%
Operating margin
- Social housing lettings
18.9%
17.8%
17.8%		 20.6% 17.2%
21.3%
20.4%
Interest cover % (EBITDA-MRI)
260.4%
109.6%
101.0%		 109.3% 94.0%
129.0%
122.0%
Headline social housing cost per
unit £ CPU
£4,332
£5,426
£5,961		 £5,824 £6,026
£5,089
£5,136
Return on capital employed %
2.1%
2.6%
2.6%		 2.8% 2.3%
2.98%
2.8%
Development & investment
New supply delivered %
- Social housing units
2.2%
2.4%
2.0%		 1.7% 2.0%
1.5%
1.4%
Gearing %
33.6%
36.0%
37.3%		 36.4% 40.2%
48.9%
45.6%
Reinvestment %
7.2%
7.4%
7.2%		 6.0% 8.8%
10.1%
7.7%

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Value for Money continued

The economy remained challenging during the year with interest rates remaining high and inflation volatile, however Selwood’s financial performance has remained strong, achieving value for money results better than target for most of the regulator measures.

Selwood's headline social housing cost per unit (CPU) increased by 7% from the previous year due to inflation and higher volumes, especially in responsive repairs. This was partly offset by lower materials costs from new supplier agreements finalised at the start of the year. Also, migration to the cloud and revised IT partnership agreements delivered additional savings in the second half of the year.

EBITDA-MRI interest cover (*) remained in line with the previous year, which was much better than expected due in part to the cost savings mentioned earlier and lower interest costs than anticipated. EBITDA-MRI is expected to fall in 25/26 to below 100% as more resource is being focused on our responsive and planned programmes to ensure we meet legislation changes like Awaab’s law. We do not have any covenants that are measured by EBITDA-MRI. The EBITDA covenants are being comfortably met at 3x the required cover. We expect this to remain achievable for the full length of the agreements. In May 2025, we completed a £75m fixed loan agreement with Saltaire Housing for the government backed Affordable Housing Grant Scheme (AHGS), drawing £50m, immediately reducing our interest rate risk.

Gearing was better than target and well below Selwood’s golden rule target of 50% and the existing loan covenant of 60%. Gearing measures the relationship between debt and tangible fixed housing assets will increase over the next few years as we borrow more money to fund our development programme and meet our environmental targets.

The improved return on capital employed (ROCE) was better than target due to an increase in gains from disposal of fixed assets. The board agreed to a targeted disposal strategy based on a variety of considerations such as energy performance, age, condition, and void properties that are not viable for relet without a significant investment beyond their 30-year return. This will continue to result in the disposal of a handful of properties over the coming years which will continue to boost the Selwood ROCE performance.

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Value for Money continued

----- Start of picture text -----
Operating Margin (overall) %
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
VfM LQ VfM Med VfM UQ Forecast ACTUAL
----- End of picture text -----

The operating margin has reversed its downward trend from recent years, increasing due to efficiency savings and the reclassification of certain planned decarbonisation projects to capital expenditure. Despite the increased complexity of tasks such as addressing damp and mould issues and fencing, our responsive repairs teams continue to maintain a daily completion rate of approximately three jobs per day per operative.

The transformation project, to develop and expand our system capabilities, improve our processes, and explore further efficiencies has also progressed with two modules going live during the year. This project continues to require additional staff and investment in new systems in the short term which impacts our operating margin.

The continuing focus on efficiency and improved systems and processes will help to maintain Selwood’s operating margin at their current levels before increasing in the medium term.

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Value for Money (continued)

----- Start of picture text -----
New supply delivered
(social housing units) %
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
VfM LQ VfM Med VfM UQ Forecast ACTUAL
----- End of picture text -----

The new supply delivery decreased during the year to achieve 125 new properties. This fall was expected in 24/25 as we reduce the risk of the impact of build cost inflation and possible development delays in the sector. Selwood are still committed to development and our corporate strategy lays out a plan to build 1,700 homes over 10 years, having delivered 296 in the first two years.

In addition to the indicators included in the VfM standard, two key areas of performance monitored by the board are rent loss due to empty properties as a % of rent due and current tenant arrears net of unpaid housing benefit as a % of rent due. These are financial KPIs but also helps us to fulfil our social purpose:

It has been another good year for our lettings team, both in terms of performance and of adapting service delivery to deliver in a changing environment.

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Value for Money (continued)

During the year the team let 378 homes, and the neighbourhoods team facilitated 84 mutual exchanges. At the end of March 2025, the void loss attributable to rented dwellings (including shared ownership) was 0.73% (March 2024 0.96%). The year saw more homes being let outside of our nomination agreements with local authority partners, which allowed us to rehouse 42 rented customers as part of the regeneration of the Alcock Crest and Westleigh sites in Warminster and find efficient and modern homes for existing 25 customers experiencing fuel poverty.

The graph below compares the actual performance and target for Selwood Housing with the quartiles calculated by HouseMark for our benchmarking group during 2023/24:

Despite the increased cost of living the collection of rent and service charges remains strong. This is in part due to our robust pre-tenancy assessment of affordability, the firm, consistent and timely intervention of the income team, and timely referrals to our tenancy sustainment coordinators and financial inclusion partners.

The strong collection ethos has shone through again this year with only 6 evictions taking place. The principles of timely support and decisive intervention have resulted in another top-quartile performance from the income team of 0.53% current customer arrears.

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Value for Money (continued)

Supporting actions to deliver the 25/26 targets

To support the delivery of the targets set out for the value for money metrics shown above, we will:

Tenant Satisfaction Measures

Our tenant satisfaction measures for 2024/25 continue to show strong performance. All survey-based measures remain in the upper quartile of benchmark results seen across the sector this year, with overall satisfaction rising to 87%. These results are based on feedback from 615 customers who completed telephone surveys during the year. Notably, all measures have improved compared to the previous year—except for one, which saw a very slight decrease. The full results are shown below:

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Tenant Satisfaction Measures (continued)

Survey measures- LCRA only Selwood
2023/24		 Selwood
2024/25
TP01 Proportion of respondents who report that they are satisfied with the
overall service from their landlord.
84.1% 87.0%
TP02
Proportion of respondents who have received a repair in the last 12
months who report that they are satisfied with the overall repairs
service.
82.1% 84.4%
TP03 Proportion of respondents who have received a repair in the last 12
months who report that they are satisfied with the time taken to
complete their most recent repair.
82.5% 82.2%
TP04 Proportion of respondents who report that they are satisfied that their
home is well maintained.
83.2% 85.3%
TP05 Proportion of respondents who report that they are satisfied that their
home is safe.
87.2% 90.5%
TP06 Proportion of respondents who report that they are satisfied that their
landlord listens to tenant views and acts upon them.
72.0% 75.1%
TP07 Proportion of respondents who report that they are satisfied that their
landlord keeps them informed about things that matter to them.
89.0% 90.2%
TP08 Proportion of respondents who report that they agree their landlord
treats them fairly and with respect.
86.7% 89.9%
TP09 Proportion of respondents who report making a complaint in the last 12
months who are satisfied with their landlord’s approach to complaints
handling.
46.0% 55.3%
TP10 Proportion of respondents with communal areas who report that they are
satisfied that their landlord keeps communal areas clean and well
maintained.
77.5% 79.6%
TP11 Proportion of respondents who report that they are satisfied that their
landlord makes a positive contribution to the neighbourhood.
79.3% 83.8%
TP12 Proportion of respondents who report that they are satisfied with their
landlord’s approach to handling anti-social behaviour.
69.3% 70.0%

The non-survey measures are also positive in either the upper or median quartile of benchmark results that we have seen across the sector with the majority showing improvement on the prior year.

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Tenant Satisfaction Measures (continued)

Non-survey measures Selwood
2023/24		 Selwood
2024/25
BS01 Proportion of homes for which all required gas safety checks have
been carried out.		 100.0%
100.0%
BS02 Proportion of homes for which all required fire risk assessments have
been carried out.		 100.0%
100.0%
BS03 Proportion of homes for which all required asbestos management
surveys or re-inspections have been carried out.		 90.9%
98.9%
BS04 Proportion of homes for which all required legionella risk assessments
have been carried out.		 100.0%
100.0%
BS05 Proportion of homes for which all required communal passenger lift
safety checks have been carried out.		 100.0%
100.0%
RP01 Proportion of homes that do not meet the Decent Homes Standard -
LCRA only-annual		 1.6%
1.0%
RP02 (1) Proportion of non-emergency responsive repairs completed within the
landlord’s target timescale.		 85.2%
85.2%
RP02 (2) Proportion of emergency responsive repairs completed within the
landlord’s target timescale		 99.7%
99.6%
CH01 (1) Number of stage one complaints received per 1,000 homes. 58.5
52.0

CH01 (2)
Number of stage two complaints received per 1,000 homes.		 9.0
7.4

CH02 (1)
Proportion of stage one complaints responded to within the Housing
Ombudsman’s Complaint Handling Code timescales.		 92.6%
98.7%
CH02 (2) Proportion of stage two complaints responded to within the Housing
Ombudsman’s Complaint Handling Code timescales.		 88.0%
98.1%
NM01 Number of anti-social behaviour cases, opened per 1,000 homes. 32.1
48.5
NM01 (2)
Number of anti-social behaviour cases that involve hate incidents
opened per 1,000 homes		 0.3
0.3

Section 172 Statement

The board of directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its stakeholders, and in doing so have regard to a range of matters including:

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Key decisions and matters that are of strategic importance to the company are appropriately informed by s172 factors. These include but are not limited to:

Through an open and transparent dialogue with our key stakeholders, we have been able to develop a clear understanding of their needs, assess their perspectives and monitor their impact on our strategic ambition and culture.

As part of the board’s decision-making process, the board considers the potential impact of decisions on relevant stakeholders whilst also having regard to several broader factors, including the impact of the company’s operations on the community and environment, responsible business practices and the likely consequences of decisions in the long term.

In making material decisions the board has sought to deliver benefit to our customers and the communities that we build in, provide secure employment opportunities and fair economic relationships with our suppliers.

Internal controls assurance

The board has overall responsibility for establishing and maintaining the whole system of internal control and for reviewing its effectiveness. The system of internal control is designed to manage, rather than eliminate, the risk of failure to achieve business objectives and to provide reasonable, and not absolute, assurance against material misstatement or loss.

The board receives and considers annual reports at the group audit and finance committee, group asset and development committee and management on the management of risk and control arrangements. The board review the strategic risk register at each of its meetings and receive the full risk register annually for review. The group audit and finance committee set the plans for internal audits based on the risk register to ensure that appropriate work is being undertaken to mitigate risks with corrective actions, where necessary.

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Internal controls assurance continued

The process for identifying, evaluating, and managing the strategic risks faced by Selwood Housing is ongoing, and has been in place prior to and throughout the period commencing 1 April 2024 up to the date of approval of the annual report and financial statements. The system for monitoring risk management is intuitive, interactive and puts emphasis on ensuring that good controls are in place and actions are progressed to deliver improvement in risk scores.

The arrangements adopted by the board in reviewing the effectiveness of the system of internal control, together with some of the key elements of the control framework include:

The board cannot delegate ultimate responsibility for the system of internal control, but it can, and has, delegated authority to the group audit and finance committee to review the effectiveness of the system of internal control regularly. The board receives minutes from each committee meeting.

The means by which the group audit and finance committee reviews the effectiveness of the system of internal control include considering internal audit reports, management assurances and the external audit reports. The committee agrees and monitors a three-year rolling programme of internal audit reviews, which have been undertaken by an independent audit firm, TIAA Limited.

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Internal controls assurance continued

The group audit and finance committee has received the executive team’s annual review of the effectiveness of the system of internal control for Selwood Housing, together with the annual report of the internal auditor and has reported its findings to the board.

The internal auditors concluded in their annual report that “TIAA is satisfied that, for the areas reviewed during the year, Selwood Housing Group, has reasonable and effective risk management, control and governance processes in place”. The board has in turn conducted its own annual review of the effectiveness of the system of internal control and considers there is nothing adverse to bring to the attention of company members.

Statement of responsibilities of the board

The board are responsible for preparing the strategic report, annual report, and the financial statements in accordance with applicable law and regulations.

Company law and social housing legislation require the board to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the board must not approve the financial statements unless they are satisfied that they give a true and fair view of the situation of the group and company and of the surplus of the group and company for that period.

In preparing these financial statements, the board are required to:

The board are responsible for keeping adequate accounting records that are sufficient to show and explain the group and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing 2022. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Group strategic report including the report of the board for the year ended 31 March 2025 continued Statement of responsibilities of the board continued

The board members are responsible for ensuring that the report of the board is prepared in accordance with the Statement of Recommended Practice for registered social housing providers 2018.

Financial statements are published on the group’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the group’s website is the responsibility of the board. The board responsibility also extends to the ongoing integrity of the financial statements contained therein.

Going concern

After making enquiries the board has a reasonable expectation that Selwood Housing has adequate resources to continue in operational existence for the foreseeable future. The board defines the foreseeable future as at least 12 months from the date of signing the financial statements. For this reason, it continues to adopt the going concern basis in the financial statements.

Annual General Meeting

The Annual General Meeting is planned to be held on 1[st] October 2025 in the boardroom of Selwood Housing’s office and available online.

Independent auditor

A resolution to appoint Selwood Housing’s auditor will be proposed at the forthcoming Annual General Meeting.

Statement of disclosure of information to auditor

So far as the board is aware, there is no relevant audit information of which the company’s auditor is unaware. Each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information.

Approval

The report of the board of directors including the strategic report was approved by the board on 3 July 2024 and signed on its behalf by:

Koo Chai Young Li Mow Ching Chair 2 July 2025

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SELWOOD HOUSING SOCIETY LIMITED

Opinion

We have audited the financial statements of Selwood Housing Society Limited (“the Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2025 which comprise the consolidated and company statement of comprehensive income, the consolidated and company statement of financial position, the consolidated and company statements of changes in reserves, , the consolidated statement of cash flows and notes to the financial statements, including a summary of 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:

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 Group and 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 Board’s 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 Company’s or Group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The board are responsible for the other information. Other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information including the letter from the chair and Group Strategic Report including the

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operating and financial review and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken during the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained during the audit, we have not identified material misstatements in the Strategic report and Report of the Directors.

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:

Responsibilities of the board

As explained more fully in the statement of responsibilities of the board set out on page 35, the board is 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 board members 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 board are responsible for assessing the Group and the 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 board either intend to liquidate the Group or the 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.

38

Selwood Housing Society Ltd

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 based on these financial statements.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the

39

Selwood Housing Society Ltd

override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

Use of our report

This report is made solely to the members of the Company, as a body, in accordance with the Housing and Regeneration Act 2008 and 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Lee Cartwright (Senior Statutory Auditor) For and on behalf of Beever and Struthers, statutory auditor 20 Colmore Circus Queensway Birmingham B4 6AT Date: 16 July 2025

40

Selwood Housing Society Ltd

Consolidated and company statement of comprehensive income for the year ended 31 March 2025

Turnover
Cost of sales
Operating costs
Gain on disposal of fixed assets
Operating surplus
Other interest receivable and similar income
Interest and financing costs
Other finance costs
Movement in fair value of investment properties
Surplus before taxation
Taxation on surplus
Surplus for the financial year
Actuarial loss / gain on defined benefit pension
scheme
Total comprehensive income for year		 Note Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
4
4
4
11
12
26
16
13
26		 56,922
52,699
56,948
52,772
(5,284)
(5,067)
(5,284)
(5,067)
(40,172)
(37,993)
(40,160)
(37,996)
3,423
3,401
3,423
3,401
14,889
13,040
14,927
13,110
133
136
116
117
(7,263)
(6,007)
(7,263)
(6,007)
14
9
14
9
0
(12)
0
(12)
7,773
7,166
7,794
7,217
3
3
0
0
7,776
7,169
7,794
7,217
(362)
(368)
(362)
(368)
7,414
6,801
7,432
6,849

The notes on pages 46 to 88 form part of these financial statements.

All activities relate to continuing operations.

Charity Commission Registration No 1141124 Company Limited by Guarantee - Registration No. 4168336 Registered with the Regulator of Social Housing No. LH4097

41

Selwood Housing Society Ltd

Consolidated and company statement of financial position at 31 March 2025

Note
Fixed assets
Tangible fixed assets - housing properties
14
Tangible fixed assets - other
15
Investment properties
16
Investments in companies
17
Current assets
Stocks
19
Debtors - receivable within 1 year
20
Cash and cash equivalents
20a
Creditors: amounts falling due within
1 year
21
Net current assets / (liabilities)
Total assets less current liabilities
Creditors: amounts falling due after
more than 1 year
22
Net assets excluding pension liability
Provision for deferred tax
30
Pension liability
26
Net assets
Capital and reserves
Income and expenditure reserve
Revaluation reserve		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000

514,226
494,602
514,278
494,654

4,007
3,655
3,738
3,356

340
340
340
340
125
125
3,225
3,225
518,698
498,722
521,581
501,575

4,857
6,103
2,871
4,432

4,203
4,596
4,192
4,288
6,731
6,601
5,497
5,594
15,791
17,300
12,560
14,314
(20,250)
(17,730)
(20,018)
(17,734)
(4,459)
(430)
(7,458)
(3,420)
514,239
498,292
514,123
498,155
(219,967)
(211,431)
(219,967)
(211,431)
294,272
286,861
294,156
286,724

(1)
(4)
0
0

0
0
0
0
294,271
286,857
294,156
286,724
166,797
157,448
166,682
157,315
127,474
129,409
127,474
129,409
294,271
286,857
294,156
286,724

The notes on pages 46 to 88 form part of these financial statements.

The financial statements were approved by the Board of Directors and authorised for issue on 2 July 2025

Koo Chai Young Li Mow Ching Chair

Mark Mayler Secretary

Charity Commission Registration No 1141124 Company Limited by Guarantee - Registration No. 4168336 Registered with the Regulator of Social Housing No. LH4097

42

Selwood Housing Society Ltd

Consolidated statement of changes in reserves for the year ended 31 March 2025

Group
Opening funds April 2023
Total comprehensive income for the year
Actuarial gains on defined benefit pension
scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Opening funds March 2024
Total comprehensive income for the year
Actuarial loss on defined benefit pension scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Closing total funds March 2025		 I&E
Revaluation
Total
Reserve
Reserve
£'000
£'000
£'000
148,692
131,364
280,056
7,169
0
7,169
(368)
0
(368)
6,801
0
6,801
1,955
(1,955)
0
157,448
129,409
286,857
7,776
0
7,776
(362)
0
(362)
7,414
0
7,414
1,935
(1,935)
(0)
166,797
127,474
294,271

The notes on pages 46 to 88 form part of these financial statements.

43

Selwood Housing Society Ltd

Company statement of changes in reserves for the year ended 31 March 2025

Company
Opening funds April 2023
Total comprehensive income for the year
Actuarial gains on defined benefit pension
scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Opening funds April 2024
Total comprehensive income for the year
Actuarial loss on defined benefit pension
scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Closing total funds March 2025		 I&E
Revaluation
Total
Reserve
Reserve
£'000
£'000
£'000
148,510
131,364 279,874
7,217
0
7,217
(368)
0
(368)
6,850
0
6,850
1,955
(1,955)
0
157,315
129,409
286,724
7,794
0
7,794
(362)
0
(362)
7,432
0
7,432
1,935
(1,935)
0
166,682
127,474
294,156

The notes on pages 46 to 88 form part of these financial statements.

44

Selwood Housing Society Ltd

Consolidated statement of cash flows for the year ended 31 March 2025

Note
Cash flows from operating activities
Surplus for the financial year
Adjustments for:
Depreciation of fixed assets - housing properties
14
Depreciation of fixed assets - other
15
Amortised grant
23
Interest payable and finance costs
Interest received
Difference between net pension expenses and
cash contribution
Proceeds from sale of fixed assets- housing
properties
11
Decrease /(Increase) in trade and other debtors
Decrease /(Increase) in stocks
Increase in trade and other creditors
Carrying amount of disposals
Movement in fair value of investment properties
Cash from operations
Taxation paid
Net cash generated from operating activities
Cash flows from investing activities
Proceeds from sale of fixed assets - housing
properties
11
Purchase of fixed assets - housing properties
14
Purchase of fixed assets - other
15
Purchase of investments
Receipt of grant
23
Interest received
Net cash from investing activities
Cashflows from financing activities
Interest paid
12
Taxation Paid
New loans
Debt issue costs incurred
Repayment of loans
25
Net cash used in financing activities
Net (decrease) / increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2025
2024
£'000
£'000
7,773
7,166
9,067
8,649
282
273
(562)
(413)
7,249
5,998
(133)
(136)
(348)
(359)
(5,000)
(5,043)
393
(1,282)
1,246
(1,263)
1,309
(1,137)
1,818
2,712
0
12
23,094
15,177
0
0
23,094
15,177
5,000
5,043
(30,503)
(34,106)
(639)
(357)
0
0
1,010
482
133
136
(24,999)
(28,802)
(7,263)
(6,007)
0
0
17,000
24,500
0
(138)
(7,702)
(6,849)
2,035
11,506
130
(2,119)
6,601
8,720
6,731
6,601

45

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2025

Index of notes

General notes

  1. Legal status

  2. Accounting policies

  3. Judgements in applying accounting policies and key sources of estimation

  4. uncertainty

Statement of comprehensive income related notes

  1. Particulars of turnover, cost of sales, operating costs, and operating surplus

  2. Income and expenditure from social housing lettings

  3. Units of housing stock

  4. Operating surplus

  5. Employees

  6. Directors’ and senior executive remuneration

  7. Board members

  8. Surplus on disposal of fixed assets

  9. Interest payable and similar charges

  10. Taxation on profit from operating activities

Statement of financial position related notes

  1. Tangible fixed assets – housing properties

  2. Other tangible fixed assets

  3. Investment properties

  4. Fixed asset investments

  5. Subsidiary undertakings / other investments

  6. Properties for sale and other stock

  7. Debtors

  8. 20a.Cash and Cash Equivalents

  9. Creditors: amounts falling due within 1 year

  10. Creditors: amounts falling due after more than 1 year

  11. Deferred capital grant

  12. Recycled capital grant

  13. Loans and borrowings

  14. Pension obligations

  15. Operating leases

  16. Capital commitments

  17. Related party transactions

  18. Provision for liabilities

  19. Net debt reconciliation

46

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2025

1 Legal status

Selwood Housing is incorporated in England and Wales under the Companies Act 2006 and is registered with the Regulator of Social Housing. Selwood Housing is a company limited by guarantee. The guarantors are the company members. Selwood Housing is registered with the Charity Commission. The address of the registered office is given on page 1 and the nature of the group’s operations and principal activities are set out in the strategic report. The Society is a public benefit entity.

2 Accounting policies

All accounting policies have been applied consistently year to year.

Basis of accounting

The financial statements of Selwood Housing have been prepared in accordance with applicable law and accounting standards in the United Kingdom, FRS 102 “the Financial Reporting Standard in the United Kingdom and the Republic of Ireland”, the Statement of Recommended Practice (SORP): Accounting by registered social housing providers (update 2018) and the Accounting Direction for Private Registered Providers of Social Housing 2022.

The Group operates in accordance with its Rules, Standing Orders, Financial Regulations and other governance documentation and complies with all relevant regulatory requirements.

The accounts are prepared under the historic cost basis except for the modification to a fair value basis for investment properties as specified in the accounting policies below.

Consolidation

The consolidated financial statements incorporate the results of Selwood Housing Society Limited and all its subsidiary undertakings for the year. Intragroup transactions and balances have been eliminated on consolidation. Subsidiaries are deconsolidated from the date control ceases.

Going concern

After making enquiries and reviewing the financial plan, the board has a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in the financial statements.

47

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Turnover

Turnover comprises rental income receivable in the year, income from shared ownership first tranche sales, sales of properties built for sale and other services included at the invoiced value (excluding value added tax (VAT)) of goods and services supplied in the year and revenue grants receivable in the year and capitalised capital grants. Rental income is recognised from the point when properties under development reach practical completion or otherwise become available for letting. Income from first tranche sales and sales of properties built for sale is recognised at the legal completion of sale. Income from the supply of goods and services is recognised when those goods or services are provided. Income is measured at the fair value of the consideration received or receivable. All turnover arises in the UK.

Grant income (non-Social Housing Grant)

The treatment of grant income depends on the terms of the funding. Where the grant is not conditional upon specific targets being met, then it is treated as income as it becomes receivable. Where grant income received is conditional upon the completion of certain targets and is returnable to the grant giver if the targets are not met, the income is credited to the Statement of Comprehensive Income as the targets are achieved. Any grants received, where the targets have not yet been achieved, are held as deferred income.

Other grants are receivable from local authorities and other organisations. Grants in respect of revenue expenditure are credited to the Statement of Comprehensive Income in the same period as the expenditure to which they relate.

Value added tax

Selwood Housing Society Ltd is registered for VAT. All amounts disclosed in the financial statements are adjusted to reflect Selwood Housing Society Ltd’s agreed method for the treatment of VAT and the financial statements include VAT to the extent that is suffered by the group and is not recoverable from HM Revenues and Customs. The balance of VAT payable or recoverable at the yearend is included as a current liability or asset.

48

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Taxation

Selwood Housing is a registered charity and as such, is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.

Qualifying Charitable Donations of Subsidiaries

The parent company only recognises gift aid income when a qualifying charitable donation is paid by a subsidiary.

Interest

Interest is capitalised on borrowings used to fund new development under construction for the period until the property is available for letting.

Other interest payable, interest receivable and related funding costs are charged to the Statement of Comprehensive Income in the year incurred.

Pensions

Defined benefit scheme

Selwood Housing Society Ltd participates as an admitted body in the Local Government Pension Scheme administered by Wiltshire Council, a defined benefit final salary scheme. The operating costs of providing retirement benefits to participating employees are recognised in the accounting periods in which the benefits are earned. The related finance costs, expected return on assets and any other changes in fair value of the assets and present value of liabilities, are recognised in the accounting period in which they arise.

Pension scheme assets are measured using market value. Pension scheme liabilities are measured using the projected unit actuarial method and are discounted at the current rate of return on a high-quality corporate bond of equivalent terms and currency to the liability. The increase in the present value of the liabilities of Selwood Housing Society Ltd’s defined benefit pension scheme expected to arise from employee service in the period is charged to operating surplus. The expected return on the scheme’s assets and the increase during the year in the present value of the scheme’s liabilities arising from the passage of time are included in operating surplus. Actuarial gains and losses are recognised in the Statement of Comprehensive Income. This pension scheme was closed to new members on 1 October 2010.

49

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

2 Accounting policies (continued)

Defined contribution scheme

Selwood Housing also participates in a defined contribution scheme where the amount charged to the Statement of Comprehensive Income represents the contributions payable to the scheme in respect of the accounting period.

Holiday pay accrual

A liability is recognised to the extent any unused holiday pay entitlement has accrued at the year end and is material; it is carried forward to future periods.

Housing properties

Housing properties are principally dwellings available for rent and are stated at cost less depreciation. Cost includes the cost of acquiring land and buildings, development costs, interest charges incurred during the development period and expenditure incurred in respect of improvements.

Development administration costs are capitalised on an apportionment of the staff time spent on this activity up to the point where the property is available for letting.

Improvements are works which result in an increase in the net rental income, such as a reduction in future maintenance costs, or result in a significant extension of the useful economic life of the property to the business. Only the direct overhead costs associated with new developments or improvements are capitalised.

Works to existing properties which replace a component that has been treated separately for depreciation purposes are capitalised and the replaced component treated as disposed of in the year of replacement.

Shared ownership properties are split proportionally between current and fixed assets based on the element relating to expected first tranche sales.

50

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

The first tranche proportion is classed as current asset and related sales proceeds included in turnover and the remaining element is classed as fixed asset and included in housing properties at cost, less any provisions needed for depreciation or impairment.

Deemed cost on transition to FRS 102

On transition to FRS 102 the Group took the option of carrying out a one-off valuation exercise of selected housing properties and using that amount as deemed cost. The Group engaged independent valuation specialist Jones Lang LaSalle (JLL) to value properties on an existing use social housing (EUV-SH) basis to determine the deemed cost as at 1 April 2014. The adoption of the deemed cost option resulted in a net increase in fixed assets as at 1 April 2014 of £144.4m revaluation gains which was credited to the revaluation reserve.

Depreciation of Housing properties

Selwood Housing depreciates its housing properties by component on a straightline basis over the estimated useful economic lives of component categories. Freehold land is not depreciated.

The useful economic lives of the components are as follows:

Structure
 100 years
Roofs 60 years
Windows / Doors 25 years
Bathrooms 25 years
Kitchens 20 years
Boilers 15 years
PV panels 20 years
Fixtures & Fittings 10 years
Lighting 20 years
Fire Alarms 15 years
Door entry systems 10 years
Electric Heating 20 years
Air Source Heat Pumps 15 years
Guttering, Soffits & Fixings 30 years
Flat Roofs 30 years
External Wall Insulation 100 years
Cavity Wall insulation 30 years

Housing properties under construction are not depreciated until practical completion. A full year’s depreciation is charged in the year the property is first available for letting.

51

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Impairment

Housing properties, which are depreciated over a period more than 50 years, are subject to impairment reviews annually. Other assets are reviewed for impairment if there is an indication that impairment may have occurred.

Where there is evidence of impairment, a detailed assessment is undertaken to compare the carrying amount of assets or cash generating units for which impairment is indicated to their recoverable amounts.

Where necessary, fixed assets are written down to the recoverable amount, being the higher of the fair value less costs to sell or value in use of an asset or cash generating unit. Any such write down is charged to operating surplus.

What constitutes a cash generating unit (CGU) when indicators of impairment require there to be an impairment review. Selwood Housing considers those properties revalued to deemed cost on adoption of FRS102 and within specific schemes as CGU’s.

Social Housing Grant

Social Housing Grant (SHG) is receivable from Homes England. Where properties are held at deemed cost under the transition to FRS102, the related SHG was initially recognised under the performance model. Subsequent grant is accounted for using the accrual model set out in FRS 102 and the Housing SORP. Grant is carried as deferred income in the statement of financial position and released to the statement of comprehensive income on a systematic basis over the useful economic life of the structure of the property.

If SHG is received in respect of revenue expenditure, it will be credited to the Statement of Comprehensive Income in the same period as the expenditure to which it relates.

SHG is subordinated to the repayment of loans by agreement with Homes England. SHG released on sale of a property may be repayable but is normally available to be recycled and is credited to a Recycled Capital Grant Fund and included in the Statement of Financial Position in creditors.

52

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Social Housing Decarbonisation Fund

SHDF has been awarded to help Housing Associations upgrade a significant amount of the social housing stock currently below Energy Performance Certificate (EPC) band C up to that standard. It will support the installation of energy performance measures in social homes.

Grant is carried as deferred income in the statement of financial position and released to the statement of comprehensive income on a systematic basis over the useful economic life of the structure of the property. If SHDF is received in respect of revenue expenditure, it will be credited to the Statement of Comprehensive Income in the same period as the expenditure to which it relates.

Other tangible fixed assets and depreciation

Other fixed assets are stated at cost less depreciation. Cost includes the purchase price of the asset and any costs incurred in bringing the asset into use. Depreciation is provided to write off the cost of tangible fixed assets, less their residual values, over their expected useful lives using the straight-line basis.

• Office premises - 50 years
• PV Panels - 20 years
• Motor Vehicles - 5 years
• IT tangible assets (where costs exceed £2k) - 5 years
• IT intangible assets (where costs exceed £2k)- 5 years
• Plant and Equipment - 5 years
• IT tangible assets (Laptops/Tablets) - 3 years
• Dynamics Housing Management System - 15 years
• Fixtures & Fittings - 10 years

Freehold land is not depreciated.

Where website and software costs can be treated as either tangible or intangible assets, they are treated as tangible fixed assets by the group.

Surpluses or deficits arising on the disposal of other fixed assets are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised as part of the surplus/deficit for the year.

53

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Stocks

Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.

Shared ownership first tranche sales completed properties for outright sale and property under construction are valued at the lower of cost and net realisable value. Cost comprises materials, direct labour, capitalised interest, and direct development overheads. Net realisable value is based on estimated sales price after allowing for all further costs of completion and disposal.

Recoverable amount of rental and other receivables

The Group estimates the recoverable value of rent and other receivables and impairs the debtor by appropriate amounts. When assessing the amount to impair it reviews the age profile of the debt and the class of debt.

Operating leases

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the term of the lease.

Schemes managed by agents

In accordance with financial reporting standards, where the risks and rewards of running the scheme accrue to the managing agent the Statement of Comprehensive Income includes only that income and expenditure which relates solely to Selwood Housing. Revenue is recognised as services are provided.

Cash and cash equivalents

Cash and cash equivalents in the Group’s Consolidated Statement of Financial Position consists of cash at bank, in hand, deposits and short-term investments with an original maturity of 95 days or less.

Short-term investments

Investments are stated at the lower of cost or market value.

54

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Investment properties

Investment properties consist of commercial properties and other properties not held for social benefit or for use in the business. These properties are held at fair value determined annually by external valuers. Any changes in fair value are recognised in the Statement of Comprehensive Income. Due to the immateriality of the movement on the 4 properties held, this has not been reflected in the statements. No depreciation is provided.

In the Company’s individual financial statements, investment properties rented to other group companies are classified as freehold office (other tangible fixed assets) and held at historical cost less depreciation and impairment.

Loans

All loans held by the group are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the transaction price (the amount of cash received including any loan premiums) less any transaction costs. FRS 102 requires that basic financial instruments are subsequently measured at amortised cost using the effective interest rate method. The group has calculated that the difference between the historical cost basis amortising costs and premiums on a straight-line basis and the application of the effective interest rate method is not material and so loan transaction costs and premiums are amortised to the income and expenditure account on a straight-line basis over the term of the loan.

Financial Instruments

Financial assets and liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all its liabilities.

Sinking funds

All sinking funds are dealt with as creditors.

55

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Revaluation reserve

The difference on transition to FRS 102 between the deemed cost of social housing properties and the historical cost carrying value is credited to the revaluation reserve. The difference between historical cost depreciation and depreciation charged on the deemed cost is transferred from the revaluation reserve to the income and expenditure reserve each year.

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest rate method, less any impairment losses. Any losses arising from impairment are recognised in the statement of comprehensive income in other operating expenses. The Group estimates the recoverable value of rental and other receivables and impairs the debtor by appropriate amounts.

The Group has made arrangement with individuals and households for arrears payments of rent and service charges. These arrangements are effectively loans granted at nil interest rate.

3 Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, key judgements have been made in respect of the following:

56

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

3 Judgements in applying accounting policies and key sources of estimation uncertainty (continued)

Other key sources of estimation uncertainty

Tangible fixed assets, other than investment properties are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on several factors. In re-assessing asset lives, factors such as the Group’s experience over several years of actual component lives and the Group’s ability to protect the life of a property by continuing investment are taken into account.

Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

For housing property assets, the assets are broken down into components based on management’s assessment of the properties. Individual useful economic lives are assigned to these components.

57

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

3 Judgements in applying accounting policies and key sources of estimation uncertainty (continued)

Investment properties are professionally valued bi-annually using a yield methodology. This uses market rental values capitalised at a market capitalisation rate but there is an inevitable degree of judgement involved in that each property is unique and value can only ultimately be reliably tested in the market itself. Last valuation Mar 2024.

The estimate for receivables relates to the recoverability of the balance outstanding at year end. A review is performed on the debt to consider whether it is recoverable.

58

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

4 Particulars of turnover, cost of sales, operating costs, and operating surplus – company

Surplus Operating
Cost of Operating on surplus
Turnover sales costs disposal /(deficit)
2025 2025 2025 2025 2025
£'000 £'000 £'000 £'000 £'000
Social housing lettings (note 5) 48,965 0 38,548 0 10,417
Other social housing activities
First tranche low-cost home ownership
sales 7,275 5,284 226 0 1,765
Gain on disposal of fixed assets 0 0 0 3,423 3,423
Charges for support services 33 0 4 0 29
Development costs not capitalised 0 0 721 0 (721)
7,308 5,284 951 3,423 4,496
Activities other than social housing activities
Lettings 13 0 4 0 9
Other 662 0 657 0 5
675 0 661 0 14
56,948 5,284 40,160 3,423 14,927
Surplus Operating
Cost of Operating on surplus
Turnover sales costs disposal /(deficit)
2024 2024 2024 2024 2024
£'000 £'000 £'000 £'000 £'000
Social housing lettings (note 5) 44,486 0 36,257 0 8,229
Other social housing activities
First tranche low-cost home ownership
sales 7,576 5,067 249 0 2,260
Gain on disposal of fixed assets 0 0 0 3,401 3,401
Charges for support services 31 0 4 0 27
Development costs not capitalised 0 0 783 0 (783)
7,607 5,067 1,036 3,401 4,905
Activities other than social housing activities
Lettings 13 0 3 0 10
Other 666 0 700 0 (34)
679 703 0 (24)
52,772 5,067 37,996 3,401 13,110

59

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

4 Particulars of turnover, cost of sales, operating costs, and operating surplus – group

Social housing lettings (note 5)
Other social housing activities
First tranche low-cost home ownership sales
Gain on disposal of fixed assets
Charges for support services
Development costs not capitalised
Activities other than social housing activities
Lettings
Other
Social housing lettings (note 5)
Other social housing activities
First tranche low-cost home ownership sales
Gain on disposal of fixed assets
Charges for support services
Development costs not capitalised
Activities other than social housing activities
Lettings
Other		 Turnover
Cost of
sales
Operating
costs
Surplus
on
disposal
Operating
surplus
/(deficit)
2025
2025
2025
2025
2025
£'000
£'000
£'000
£'000
£'000
48,965
0
38,548
0
10,417
7,275
5,284
226
0
1,765
0
0
0
3,423
3,423
33
0
4
0
29
0
0
721
0
(721)
7,308
5,284
951
3,423
4,496
13
0
4
0
9
636
0
669
0
(33)
649
0
673
0
(24)
56,922
5,284
40,172
3,423
14,889
Turnover
Cost of
sales
Operating
costs
Surplus
on
disposal
Operating
surplus
/(deficit)
2024
2024
2024
2024
2024
£'000
£'000
£'000
£'000
£'000
44,486
0
36,257
0
8,229
7,576
5,067
249
0
2,260
0
0
0
3,401
3,401
31
0
4
0
27
0
0
783
0
(783)
7,607
5,067
1,036
3,401
4,905
13
0
3
0
10
593
0
697
0
(104)
606
0
700
0
(94)
52,699
5,067
37,993
3,401
13,040

60

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025 5 Income and expenditure from social housing lettings – group

Income
Rents net of identifiable service charges
Service charge income
Amortised government grants
Other grants
Turnover from social housing lettings
Expenditure
Management
Service charge costs
Routine maintenance
Planned maintenance
Major repairs expenditure
Bad debts
Depreciation of housing properties:
-annual charge
-accelerated on disposal of components
Operating expenditure on social housing lettings
Operating surplus / (deficit) on social housing
lettings
Void Losses		 General
needs
Supported
& older
people's
housing
Low-cost
home
ownership
Care
Homes
Garages
Total
2025
Total
2024
£'000
£'000
£'000
£'000
£'000
£'000
£'000
34,272
9,239
2,052
304
775
46,642
42,509
647
1,030
79
0
0
1,756
1,563
564
0
0
0
0
564
413
3
0
0
0
0
3
1
35,485
10,269
2,132
304
775
48,965
44,486
4,814
1,819
306
98
96
7,133
6,307
1,740
842
0
12
10
2,604
2,430
5,607
1,729
0
261
40
7,637
6,441
5,250
1,589
0
13
28
6,880
6,450
3,679
1,136
0
10
22
4,847
4,740
89
26
0
0
0
115
94
7,029
2,038
0
0
0
9,067
8,650
206
60
0
0
0
266
1,144
28,414
9,239
306
394
196
38,548
36,256
7,071
1,030
1,826
(90)
579
10,417
8,230
144
98
103
0
36
381
463

61

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025 5 Income and expenditure from social housing lettings – company

Income
Rents net of identifiable service charges
Service charge income
Amortised government grants
Other grants
Turnover from social housing lettings
Expenditure
Management
Service charge costs
Routine maintenance
Planned maintenance
Major repairs expenditure
Bad debts
Depreciation of housing properties:
-annual charge
-accelerated on disposal of components
Operating expenditure on social housing lettings
Operating surplus / (deficit) on social housing
lettings
Void Losses		 General
needs
Supported
& older
people's
housing
Low-cost
home
ownership
Care
Homes
Garages
Total
2025
Total
2024
£'000
£'000
£'000
£'000
£'000
£'000
£'000
34,272
9,239
2,052
304
775
46,642
42,509
647
1,030
79
0
0
1,756
1,563
564
0
0
0
0
564
413
3
0
0
0
0
3
1
35,485
10,270
2,132
304
775
48,965
44,486
4,814
1,819
306
98
96
7,133
6,307
1,740
842
0
12
10
2,604
2,430
5,607
1,729
0
261
40
7,637
6,442
5,250
1,589
0
13
28
6,880
6,450
3,679
1,136
0
10
22
4,847
4,740
89
26
0
0
0
115
94
0
0
0
0
0
0
0
7,029
2,038
0
0
0
9,067
8,650
206
60
0
0
0
266
1,144
28,414
9,239
306
394
196
38,548
36,257
7,071
1,031
1,826
(90)
579
10,417
8,229
144
98
103
36
381
463

62

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

6 Units of housing stock

At the end of the year accommodation in management was as follows:

General needs housing:
- social
- affordable
Low-cost home ownership
Supported housing
Housing for older people
Sheltered units for older people / supported
living
Total social housing units
Residential care home bed spaces
Total owned and managed
Leaseholders of sold flats
Leaseholders units for supported living
Market rent
Total owned and managed accommodation
Units under construction
Total owned and managed accommodation as at Apr 24
Newly built rental accommodation, built by or for Selwood
Housing.
Sales to the open market
Right to Buy Disposals
Right to Acquire Disposals
Rental property transferred to Leasehold
Fully Stair cased LCHO
Total owned and managed accommodation as at Mar 25		 Group &
Company
Group &
Company
2025
2024
Number
Number
4,170
4,187
1,007
944
483
433
74
76
701
701
714
713
7,149
7,054
46
46
7,195
7,100
90
91
4
4
2
2
7,291
7,197
310
273
Group &
Company
Number
7,197
125
(27)
(1)
0
0
(3)
7,291

63

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

6 Units of housing stock (continued)

Selwood Housing owns 74 supported housing units (2024:76) and tenancy sustainment support was provided for 9 of these units by Selwood Housing in 2025 (2024:11). The rest are managed by bodies that contract with adult social care and carry the financial risk relating to these supported housing units. Other organisations manage 46 care home units on our behalf.

Selwood Housing also owns 1,123 garages, 1 shop unit used by Selwood Housing as a resource centre and 1 doctors’ surgery.

7 Operating surplus

Group Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
This is arrived at after charging / (crediting):
Depreciation of housing properties:
-annual charge 9,067 8,649 9,067 8,649
-accelerated depreciation on replaced components 265 139 265 139
Depreciation of other tangible fixed assets 282 273 257 247
Impairment of 2 blocks of flats 0 1,006 0 1,006
Impairment of Office property 0 0 0 0
Auditor's remuneration (excluding VAT):
-fees payable to the group's auditor for the audit
of the group's annual accounts 49 32 46 27
- fees for other non-audit services 13 2 13 2

8 Employees

Staff costs (including Executive Team) consist of:
Wages and salaries
Social security costs
Cost of defined benefit scheme (see note 26)
Cost of defined contribution scheme		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
12,137
11,067
12,137
11,067
1,178
1,045
1,178
1,045
188
217
188
217
867
775
867
775
14,370
13,104
14,370
13,104

64

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

8 Employees continued

The average number of employees (including the executive team) expressed as full-time equivalents (calculated based on a standard working week of 35 hours during the year) was as follows:

Group Group Company Company
2025 2024 2025 2024
Administration 66 62 66 62
Development 11 9 11 9
Maintenance 100 91 100 91
Housing, Support and care 151 149 151 149
328 311 328 311

9 Directors’ and senior executive remuneration

The directors and senior executives are defined as the members of the board of directors, the group chief executive and the executive team disclosed on page 1.

Group and company

Executive directors' emoluments
Amounts paid to non-executive directors
Contributions to money purchase pension schemes
Contributions to defined benefits pension scheme		 2025
2024
£'000
£'000
667
636
56
49
12
11
83
80
818
776

65

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

9 Directors’ and senior executive remuneration (continued)

The remuneration paid to staff (including the executive team) earning over £60,000 upwards (excluding employer pension contributions):

2025
2024
No.
No.
£60,000 - £69,999 16
9
£70,000 - £79,999 10
10
£80,000 - £89,999 1
0
£90,000 - £99,999 0
1
£100,000 - £109,999 2
1
£110,000 - £119,999 1
1
120,000 - 129,999 0
1
130,000 - 139,999 1
0
140,000 - 149,999 0
0
150,000 - 159,999 0
0
160,000 - 169,999 0
0
170,000 - 179,999 0
0
180,000 - 189,999 0
0
190,000 - 199,999 0
0
200,000 - 209,999 0
1
210,000 - 219,999 1
0
32
24

Benefits have accrued to 3 executive officers under the Wiltshire pension fund defined benefit scheme (2024 – 3) and 1 director accrued benefits under the group’s defined contribution pension scheme during the year (2024 – 1).

The group chief executive received remuneration of £155,134 salary excluding pension contributions plus £55,486 in lieu of pension contributions. This is 6.02 times the median salary of all members of staff (2024: 6.14 times).

66

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

10 Board members

The Chair of the board receives a salary of £11,865 (2024: £10,500) per annum, the committee chairs each receive £1,978 per annum (2024: £1,750), in addition to their basic board member payment. The standard other group board member payment is £4,802 (2024: £4,250). Emoluments paid to board members in 2025 were 0.10% (2024: 0.09%) of Selwood Housing’s annual turnover.

Board member Remuneration
& Expenses
£		 Current
Member of
Group Asset
&
Development
Committee		 Current
Member
of Group
Audit and
Finance
committee		 Group
Board
Sheila Lewis*to 31/12/24 10,550 x x
Koo Chai Young Li Mow Ching *
chair from 01/01/25		 9,986 x x
Chris Butters 7,110 x x
Stella Shepherd** 4,837 x x
Lisa Nicholls to 01/10/24 2,798 x x
Richard Yates 4,852 x x
Hannah Jones 4,810 x x
Samuel Whatleyfrom 01/12/24 1,741 x x
Maureen Robinson from 02/12/24 1,747 x x
Nicola Setchell to 01/05/24 418 x x
PhilipWhitehead 4,802 x x
David Hobdeyfrom 02/12/24 2,260 x x
Total 55,911
* Chair
** Vice Chair

67

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

11 Surplus on disposal of fixed assets

Group and Company
Disposal proceeds
Costs of disposals
Selling costs
Grant recycled
Surplus on disposal of other
tangible fixed assets		 Right to Buy
and Right to
Acquire
Other
housing
properties
Staircasing
Total
Total
2025
2025
2025
2025
2024
£'000
£'000
£'000
£'000
£'000
171
4,472
357
5,000
5,043
(49)
(1,321)
(195)
(1,565)
(1,637)
(7)
(2)
(3)
(12)
(5)
0
0
0
0
0
115
3,149
159
3,423
3,401
0
0
0
0
0
115
3,149
159
3,423
3,401

12 Interest payable and similar charges

Group and company
Bank loans and overdrafts
All other loans (excluding loans from group
entities)
Interest capitalised on construction of housing
properties		 2025
2024
£'000
£'000
5,611
4,726
2,176
2,178
(524)
(897)
7,263
6,007

13 Taxation on profit from ordinary activities

Current tax
UK corporation tax on profits of the year
Effect of changes in rates
Adjustments in respect of previous periods
Origination and reversal of timing differences
Taxation on profit on ordinary activities		 Group
Group
Company Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
0
0
0
0
0
(1)
0
0
0
2
0
0
3
2
0
0
3
3
0
0

68

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

13 Taxation on profit from ordinary activities (continued)

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The differences are explained below.

Profit on ordinary activities before tax
Tax on profit on ordinary activities at the
standard rate of corporation tax in the UK of
25%
Effects of:
Charitable income
Gift Aid Payment to parent
Expenses not deductible
Tax rate changes
Current tax charge for year		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
7,773
7,166
7,794
7,217
(1,943)
(1,792)
(1,949)
(1,804)
1,924
1,770
1,949
1,804
22
24
0
0
0
0
0
0
0
0
0
0
3
3
0
0

69

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

14 Tangible fixed assets – housing properties

All housing properties were freehold at 31 March 2025 (2024: all freehold).

Group
Cost
1st April 2024
Construction Costs
Replaced components - Additions
Completed Schemes
Disposals - RTB, RTA & market
sales
Disposals - replaced components
Impairment of 2 blocks of flats
Disposals - staircasing
Transfers
At 31 March 2025
Depreciation
1st April 2024
Charge for the year
Eliminated on disposals
Replaced components - Disposals
Impairment of 2 blocks of flats
Disposals - staircasing
At 31 March 2025
Net Book Value at 31 March 2025
Net Book Value at 31 March 2024		 General
needs
completed
General
needs under
construction
Shared
ownership
completed
Shared
ownership
under
construction
Total
£'000
£'000
£'000
£'000
£'000
511,158
6,739
42,011
2,005
561,913
0
13,539
0
5,430
18,969
11,553
(19)
0
0
11,534
11,963
(11,963)
6,202
(6,202)
0
(1,597)
0
0
0
(1,597)
(2,254)
0
0
0
(2,254)
0
0
0
0
0
0
0
(203)
0
(203)
0
0
(23)
0
(23)
530,823
8,296
47,987
1,233
588,339
(66,135)
0
(1,175)
0
(67,310)
(8,728)
0
(339)
0
(9,067)
267
0
0
0
267
1,989
0
0
0
1,989
0
0
0
0
0
0
0
8
0
8
(72,607)
0
(1,506)
0
(74,113)
458,216
8,296
46,481
1,233
514,226
445,023
6,739
40,836
2,005
494,603

70

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

14 Tangible fixed assets – housing properties (continued)

Company
Cost
1st April 2024
Construction Costs
Replaced components - Additions
Completed Schemes
Disposals - RTB, RTA & market sales
Disposals - replaced components
Impairment of 2 blocks of flats
Disposals - staircasing
Transfers
At 31 March 2025
Depreciation
1st April 2024
Charge for the year
Eliminated on disposals
Replaced components - Disposals
Impairment of 2 blocks of flats
Disposals - staircasing
At 31 March 2025
Net Book Value at 31 March 2025
Net Book Value at 31 March 2024		 General
needs
completed
General
needs under
construction
Shared
ownership
completed
Shared
ownership
under
construction
Total
£'000
£'000
£'000
£'000
£'000
511,158
6,773
42,011
2,023
561,965
0
13,541
0
5,429
18,970
11,553
(19)
0
0
11,534
11,963
(11,963)
6,202
(6,202)
0
(1,597)
0
0
0
(1,597)
(2,254)
0
0
0
(2,254)
0
0
0
0
0
0
0
(203)
0
(203)
0
0
(23)
0
(23)
530,823
8,332
47,987
1,250
588,392
(66,135)
0
(1,176)
0
(67,311)
(8,728)
0
(339)
0
(9,067)
267
0
0
0
267
1,989
0
0
0
1,989
0
0
0
0
0
0
0
8
0
8
(72,607)
0
(1,507)
0
(74,114)
458,216
8,332
46,480
1,250
514,278
445,023
6,773
40,835
2,023
494,654

71

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

14 Tangible fixed assets – housing properties (continued)

Interest capitalised in the year
Rate used for capitalisation
Total social housing grant received or receivable
to date
as follows
Capital grant - Housing properties
Recycled Capital Grant Fund
Revenue grant - I&E
Revenue grant - reserves		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
(524)
(897)
(524)
(897)
4%
3%
4%
3%
Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
35,119
34,257
35,119
34,257
134
129
134
129
564
413
564
413
5,619
5,055
5,619
5,055
41,437
39,854
41,437
39,854

Properties held for security

Selwood Housing Society Ltd had property with an existing use value of £290 million pledged as security at 31 March 2025 (£270 million – 2024).

72

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

15 Other tangible fixed assets – group

Group
Cost
At 1 April 2024
Additions
Disposals
At 31 March 2025
Accumulated Depreciation
At 1 April 2024
Charged in year
Disposals
At 31 March 2025
Net book value at 31 March
2025
Net book value at 31 March
2024		 Freehold
Fixtures
Plant &
Motor
IT
Laptops
Dynamics -
Total
Office
&
Fittings
&
Equipment
Vehicles
& Tablets
Housing Mgmt
Sys
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
3,556
52
550
13
2,325
130
711
7,337
0
0
0
0
185
170
284
639
0
0
(5)
0
0
0
0
(5)
3,556
52
545
13
2,510
300
995
7,971
(1,363)
(28)
(251)
(13)
(2,014)
(13)
0
(3,682)
(56)
(5)
(25)
0
(110)
(80)
(6)
(282)
0
0
0
0
0
0
0
0
(1,419)
(33)
(276)
(13)
(2,124)
(93)
(6)
(3,964)
2,137
19
269
0
386
207
989
4,007
2,193
25
299
0
311
117
711
3,655

Freehold office includes freehold land at cost of £360,000 (2024: £360,000) which is not depreciated.

73

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

15 Other tangible fixed assets – company

Company
Cost
At 1 April 2024
Additions
Disposals
At 31 March 2025
Accumulated Depreciation
At 1 April 2024
Charged in year
Disposals
At 31 March 2025
Net book value at 31 March
2025
Net book value at 31 March
2024		 Freehold
Fixtures
Plant
Motor
IT
Laptops
Dynamics -
Total
Office
& Fittings
&
Equipment
Vehicles
& Tablets
Housing Mgmt
Sys
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
3,556
52
6
13
2,325
130
711
6,793
0
0
0
0
185
170
284
639
0
0
0
0
0
0
0
0
3,556
52
6
13
2,510
300
995
7,432
(1,363)
(28)
(6)
(13)
(2,014)
(13)
0
(3,437)
(56)
(5)
0
0
(110)
(80)
(6)
(257)
0
0
0
0
0
0
0
0
(1,419)
(33)
(6)
(13)
(2,124)
(93)
(6)
(3,694)
2,137
19
0
0
386
207
989
3,738
2,193
25
0
0
1,022
117
0
3,356

Freehold office includes freehold land at cost of £360,000 (2024: £360,000) which is not depreciated.

16 Investment properties

Group and Company
At 1 April 2024
Revaluations
At 31 March 2025		 Market
rent
Commercial
Total
£'000
£'000
£'000
216
124
340
0
0
0
216
124
340

74

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

16 Investment properties continued

The group’s investment properties were last valued on 31 March 2024 at fair value, determined by an independent, professionally qualified valuer. The valuations were undertaken in accordance with the Royal Institution of Chartered Surveyors’ Appraisal and Valuation Manual. Details on the assumptions made and the key sources of estimation uncertainty are given in note 3.

17 Fixed asset investments

Cost or valuation
At 1 April 2024
Additions
At 31 March 2025		 Group
Company
£'000
£'000
125
3,225
0
0
125
3,225

75

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

18 Subsidiary undertakings

The principal undertakings in which the company has an interest are as follows:

Proportion of
Country of voting rights
Name incorporation / ordinary share Nature of business Nature of entity Number of shares
or
registration capital held
Private company 100,000 ordinary £1
Silcoa Ltd England 100% Dormant limited by shares shares
Cottsbury Homes Sale of properties at Private company 500,000 ordinary £1
Ltd England 100% market cost limited by shares shares
Selwood DevCo Generation and supply Private company 2,500,000 ordinary
Ltd England 100% of electricity limited by shares £1 shares

All subsidiary undertakings have the same registered office as the company, shown on page 1

76

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

19 Properties for sale & other stock

Group
Completed properties
Other
Properties under construction
Company
Completed properties
Other
Properties under construction		 First tranche
shared
ownership
Other
properties
Stock
Total
Total
2025
2025
2025
2024
£'000
£'000
£'000
£'000
1,834
0
1,834
2,921
0
204
204
163
833
1,986
2,819
3,019
2,667
2,190
4,857
6,103
First tranche
shared
ownership
Other
properties
Stock
Total
Total
2025
2025
2025
2024
£'000
£'000
£'000
£'000
1,834
0
1,834
2,921
0
204
204
163
833
0
833
1,348
2,667
204
2,871
4,432

Properties developed for sale include capitalised interest of £51k (2024 - £71k).

77

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

20 Debtors

Due within one year
Arrears of rent and service charges
Less: Provision for doubtful debts
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
620
638
620
638
(299)
(366)
(299)
(366)
321
272
321
272
0
0
0
0
2,244
2,683
2,240
2,381
1,638
1,641
1,631
1,635
4,203
4,596
4,192
4,288

The other debtors figure includes £485k (2024: £541k) in respect of 22 days’ (2024:21 days) housing benefit due from Wiltshire Council.

20a Cash and cash equivalents

Cash
Deposit accounts		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
5,426
5,274
4,866
4,938
1,305
1,327
631
656
6,731
6,601
5,497
5,594

78

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

21 Creditors: Amounts falling due within one year

Trade creditors
Rent and service charges received in advance
Amounts owed to group undertakings
Taxation and social security
Other creditors
Accruals and deferred income
Loans due within 1 year
Recycled Capital Grant
Deferred Capital grant		 Group
Group
Company Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
1,677
1,147
1,448
1,147
1,290
702
1,290
702
0
0
7
9
298
288
298
288
613
651
613
652
7,099
6,825
7,089
6,819
8,791
7,702
8,791
7,702
0
9
0
9
482
406
482
406
20,250
17,730
20,018
17,734

22 Creditors: Amounts falling due after more than one year

Group and company

Group and company
Loans and borrowings (note 25)
Deferred capital grant (note 23)
Disposal proceeds fund (note 24)
Recycled capital grant (note 24)
Sinking fund balances		 2025
2024
£'000
£'000
185,180
176,944
34,638
34,257
0
0
134
120
15
110
219,967
211,431

79

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

23 Deferred capital grant

Group and company
At 1 April
Grants received in the year
SHDF grants received in year
Grants recycled from the recycled capital grant fund
Released to income in the year
Reversal of release to income < 1 year
To be released to income < 1 year (note 21)
At 31 March		 2025
2024
£'000
£'000
34,257
34,518
300
482
710
0
9
76
(562)
(413)
406
0
0
(406)
35,120
34,257

24 Recycled capital grant

At 1 April
Additions:
Grants Recycled
Interest
Withdrawals:
New build
At 31 March
Amounts 3 years or older where repayment may
be required		 Group
Group
Company Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
129
205
129
205
4
97
4
97
10
3
10
3
(9)
(176)
(9)
(176)
134
129
134
129
0
0
0
0

80

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

25 Loans and borrowings

Loans are secured by specific charges on the housing properties of the group and are secured on the assets of Selwood Housing, including fixed charges on individual properties.

In one year or less, or on demand
In more than one year but not more than two years
In more than two years but not more than five years
In more than five years
Total debt		 Bank
Loans
Total
Total
2025
2025
2024
£'000
£'000
£'000
8,791
8,791
7,702
10,240
10,240
8,791
86,710
86,710
66,336
88,230
88,230
101,817
193,971
193,971
184,646

New funding of £75m was approved in FY24/25 with AHGS.

The loans bear interest at fixed rates ranging from 1.8% to 5.08% or at variable rates calculated at a margin above the Sterling Overnight Index Average. The current loan outstanding is made up of £120m fixed and £73.5m variable, against agreed facilities of £219m (2024 - £226.7m). At 31 March 2025 the group had undrawn loan facilities of £20m (2023 - £20m) with Nationwide and £5.5m (2023 £22m) with Lloyds.

26 Pension obligations

Group and Company

The Wiltshire Pension Fund (“WPF”) is a multi-employer scheme with more than one participating employer, which is administered by Wiltshire Council under the regulations governing the Local Government Pension Scheme (LGPS), a defined benefit scheme. The assets of the WPF are held separately from those of Selwood Housing in independently administered funds. The actuaries have used the projected unit credit method of valuation in accordance with FRS 17.

The employers’ contributions to the WPF by Selwood Housing for the year ended 31 March 2025 were £569,034 (2024: £575,165) at a contribution rate of 25.7% of pensionable salaries including an annual contribution of £343,000 to fund the deficit, set until the next funding valuation.

81

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

26 Pensions obligations (continued)

Financial assumptions

The main financial assumptions used by the actuary were:

31 March 2025 31 March 2024
% per annum % per annum
Discount rate 5.75 4.85
Future salary increases 3.40 3.25
Future pension increases 2.90 2.75

Mortality assumptions

Life expectancy is based on the Fund’s VitaCurves with improvements in line with the CMI 2022 model, with a 15% weighting of 2023 data, a 15% weighting of 2022 data, a 0% weighting of 2021 (and 2020) data, standard smoothing (Sk7), initial adjustment of 0% and a long-term rate of improvement of 1.25% per annum for both males and females. Based on these assumptions, the average future life expectancies at age 65 are summarised below:

2025 2024
No. of years No. of years
Current pensioners:
Males 21 21.3
Females 24 24.3
Future pensioners: *
Males 21.7 23.8
Females 25.2 25.8

Commutation

A commutation allowance is included for future retirements to elect to take 50% of the maximum additional tax-free cash up to HMRC limits.

82

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

26 Pensions obligations (continued)

Amounts recognised in the statement of financial position

Present value of funded obligations relating
to Selwood Housing
Fair value of plan assets relating to
Selwood Housing
Unrecognised Asset
Net Deficit		 2025
2024
£'000
£'000
(20,450)
(23,313)
28,770
28,431
(8,320)
(5,118)
0
0

Analysis of the amount (credited)/charged to the statement of comprehensive income:

Current service cost
Expected return on pension scheme assets
Interest on pension scheme liabilities
Total operating charge		 2025
2024
£'000
£'000
188
217
(1,367)
(1,247)
1,105
1,097
(74)
67

Of the above amount, £14,000 (2024: £9,000) was credited to other finance charges. £348,000 (2024: £359,000) was credited to operating surplus. Net interest income of £262k is adjusted by £248k as part of asset ceiling cap reducing net interest to £14k.

Changes in fair value of employer assets

Opening fair value of employer assets
Contributions by the Employer
Actuarial loss / gain
Administration Expenses
Benefits paid
Contributions by members
Interest
Closing fair value of employer assets		 2025
2024
£'000
£'000
28,431
26,289
570
576
(511)
985
(34)
0
(1,125)
(740)
72
74
1,367
1,247
28,770
28,431

83

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

26 Pensions obligations (continued)

Changes in present value of defined benefit obligation

Opening defined benefit obligation
Current service cost
Interest cost
Actuarial losses
Estimated benefits paid
Contributions by members
Closing defined benefit obligation		 2025
2024
£'000
£'000
23,313
23,324
188
217
1,105
1,097
(3,103)
(659)
(1,125)
(740)
72
74
20,450
23,313

Major categories of plan assets as a percentage of total plan assets:

2025 2024
Equities 40% 56%
Bonds 36% 29%
Property 23% 14%
Cash 1% 1%

Fair value of employer assets

Equities
Bonds
Property
Cash		 2025
2024
£'000
£'000
11,570
15,921
10,235
8,245
6,529
3,980
436
284
28,770
28,430

84

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

26 Pensions obligations (continued)

Amounts for the current and previous four years are as follows:

2025 2024 2023 2022 2021
£'000 £'000 £'000 £'000 £'000
Present value of defined benefit obligation (20,450) (23,313) (23,324) (32,863) (34,807)
Fair value of scheme assets 28,770 28,431 26,289 28,122 26,017
Surplus/(Deficit) on scheme 8,320 5,118 2,965 (4,741) (8,790)
Experience adjustments on plan liabilities 146 (776) (1,743) (68) 298
Experience adjustments on plan assets (511) 985 (2,457) 1,606 3,269
Cumulative actuarial gains/losses 9,328 6,736 5,092 (2,609) (6,788)
Projected pension expense for the year to 31 March 2026 Projected pension expense for the year to 31 March 2026
£'000
Projected Current Service Cost 147
Net Interest on the defined liability / asset (17)
Administration Expenses 34
Total 164

The gain is adjusted to reflect asset ceiling adjustment of £2,954k. A loss of £362k is charged to SoCI.

The estimated employer contributions for the year to 31 March 2026 are approximately £569,000.

Defined Contribution Scheme

A defined contribution pension scheme is operated by the group on behalf of some employees. The assets of the scheme are held separately from those of the group and the company in an independently administered fund. All existing and new colleagues are eligible to join. The costs associated with providing this scheme are outlined in note 8.

85

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

27 Operating leases

At 31 March 2025, the group and company had future minimum lease payments under non-cancellable operating leases as set out below:

Amounts payable as Lessee Group Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Not later than 1 year 634 545 634 545
later than 1 year and no later than 5 years 2977 952 2977 952
Later than 5 years 0 0 0 0
Total 3,611 1,497 3611 1497
Amounts receivable as Lessor Group Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Not later than 1 year 1 1 1 1
later than 1 year and no later than 5 years 0 0 0 0
Later than 5 years 0 0 0 0
Total 1 1 1 1

28 Capital commitments

Commitments contracted but not provided
for in the accounts
Commitments approved by the Board but
not contracted for		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000

90,438
81,671
90,438
81,671
109,152
95,886
109,152
95,886
199,590
177,557
199,590
177,557

86

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

28 Capital commitments (continued)

The above commitments will be financed primarily through borrowings, new funding, social housing grant, property sales and internal cash balances.

29 Related party transactions

The directors Stella Shepherd, Richard Yates and Hannah Jones are tenants of Selwood Housing. Their tenancy agreements are under normal commercial terms, and they are not able to use their position to their advantage.

The director Philip Whitehead is also a councillor of Wiltshire Council. Any transactions made with Wiltshire Council are made at arm’s length, on normal commercial terms and the councillors cannot use their position on the board to their advantage.

Except for the disclosures below, Selwood Housing Group has taken advantage of the exemption allowed under FRS 102 not to disclose related party transactions within the group. All intra-group transactions are with subsidiaries that are wholly owned. These have been eliminated on consolidation in the group’s financial statements.

Transactions with non-regulated entities

The association provides management services and other services to some of its subsidiaries. Selwood Housing also receives charges from its subsidiaries. The quantum and basis of those charges is set out below.

Transactions with non-regulated entities
Payable to Selwood Housing by
Subsidiaries:
Silcoa Ltd
Selwood DevCo Ltd
Cottsbury Homes Ltd
Payable by Selwood Housing to
Subsidiaries:
Silcoa Ltd
Selwood DevCo Ltd		 Management
Charges
Gift Aid
2025
2024
2025
2024
£'000
£'000
£'000
£'000
0
0
2
1
0
0
83
134
0
0
11
1
0
0
96
136
Other Charges
2025
2024
£'000
£'000
0
0
40
59
40
59

87

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

Other intra-group charges

No other intra-group charges are payable to the society from subsidiaries. Charges from subsidiaries to the society are for goods and services provided.

30 Provision for liabilities – Deferred Tax

At 31 March 2024
Charge / (Credit)
Origination and reversal of timing
differences
At 31 March 2025
1 Net debt reconciliation
01 April 2024
£'000
Group
Cash and cash
equivalents
6,601
Loans and borrowings
(184,647)
(178,046)
Company
Cash and cash
equivalents
5,594
Loans and borrowings
(184,646)
(179,052)		 At 31 March 2024
Charge / (Credit)
Origination and reversal of timing
differences
At 31 March 2025
1 Net debt reconciliation
01 April 2024
£'000
Group
Cash and cash
equivalents
6,601
Loans and borrowings
(184,647)
(178,046)
Company
Cash and cash
equivalents
5,594
Loans and borrowings
(184,646)
(179,052)		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
4
7
0
0
(3)
(3)
0
0
0
0
0
0
1
4
0
0

Cash flows
Non -cash
changes
31 March
2025
£'000
£'000
£'000

130
0
6,731
(9,298)
(27)
(193,972)
(178,046) (9,168)
(27)
(187,241)
5,594
(184,646)
(97)
0
5,497
(9,298)
(27)
(193,971)
(179,052) (9,395)
(27)
(188,474)

31 Net debt reconciliation

88

Annual report and financial statements 2024/25 Selwood Qfft Housing

Contents

Page
Directors, executive officers, advisors, and bankers 1
Letter from the chair 2
Group strategic report including the operating and financial 5
review for the year ended 31 March 2025
Independent auditor’s report 37
Consolidated and company statement of comprehensive
income		 41
Consolidated and company statement of financial position 42
Consolidated statement of changes in reserves 43
Company statement of changes in reserves 44
Consolidated statement of cash flows 45
Notes forming part of the financial statements 46

Directors, executive officers, advisors, and bankers

The directors of the Selwood Housing Group who were in office during the year and up to the date of signing the financial statements were:

Group Board of Directors

Sheila Lewis * to 31/12/24 Stella Shepherd ** Hannah Jones Koo Chai Young Li Mow Ching *** chair Samuel Whatley from 01/12/2024 Maureen Robinson from 02/12/24 *Chair to 31/12/24 ** vice chair *** chair from 01/01/25

Lisa Nicholls to 01/10/24 Chris Butters Richard Yates Nicola Setchell to 01/05/24 Philip Whitehead David Hobdey from 02/12/24

Executive officers

Group chief executive Group chief financial officer Group transformation and people director Group operations director Group development director

Barry Hughes Mark Mayler Ria Bristow Verena Buchanan Paul Walsh

Registered office

Bryer Ash Business Park Bradford Road Trowbridge Wiltshire BA14 8RT

Advisors and bankers

Independent Beever and Struthers Internal auditors TIAA Limited
auditor 20 Colmore Circus Artillery House
Queensway Fort Fareham
Birmingham Newgate Ln
B4 6AT Fareham
PO14 1AH
Principal funder Nationwide Building Society Principal bankers Lloyds Bank
Kings Park Road 64 Fore Street
Moulton Park Trowbridge
Northampton Wiltshire
NN3 6NW BA14 8EU
Principal Trowers & Hamlins Capsticks Solicitors Anthony Collins
legal advisors The Senate LLP Solicitors
Southernhay Gardens 1 St George’s Road 143 Edmund Street
Exeter London Birmingham
EX1 1UG SW19 4DR B3 2ES

Charity commission registration No. 1141124 Company limited by guarantee - registration No. 4168336 Registered with the Regulator of Social Housing – registration No. LH4097

1

Selwood Housing Society Ltd

Welcome from the chair of our board of directors

Overview

It’s a sincere pleasure to introduce our 2024-25 annual report and financial statement in my first year as Chair.

Over the last 12 months, we have continued to see rapidly increasing expectations placed on housing associations from both government and customers. These are set against an equally challenging economic environment with a period of high inflation pushing up our operating costs and higher interest rates increasing our borrowing cost. Below inflation customer rent increases this year added further stress to our financial model.

Despite this difficult external environment, our people have worked hard supporting customers and delivering robust performance. Provisional results from the second year of tenant satisfaction measures are a testament to this. We scored highly across both customer satisfaction and performance measures, placing us in the top 10% of our peer housing associations.

Investing in our homes

Our energy improvements programme continued with the retrofitting of our least energy efficient homes making them warmer, healthier, and more affordable for customers to heat. Since the programme launched in 2023, we have successfully upgraded 145 homes. The award of £2.5 million in March 2025 from the government’s Warm Homes: Social Housing fund (WH:SHF) Wave 3, alongside our match funding means we can schedule energy upgrades to a further 214 homes.

In 2024, we made the difficult decision to demolish several blocks of flats across two sites in Warminster when our investigations revealed that the scope and cost of repairs to the blocks was larger than anticipated and that a programme of repairs and replacement was no longer possible. We supported all fifty customers living in these flats to find new homes.

Following a consultation with residents, we announced redevelopment plans for the site that will provide up to 18 new homes for up to 60 customers.

Maintaining the standards of our existing customer homes remains a priority and in the last 12 months our teams installed 80 new bathrooms and a record 400 new kitchens!

Our teams also achieved an above target response time for repairs in customer homes completing 99.6% of emergency repairs and 85.2% of non-emergency repairs within target.

2

Selwood Housing Society Ltd

Building new homes

New data published by the National Housing Federation, Crisis and Shelter warns of the critical need to boost investment in social housing. The housing crisis is worsening rapidly with some local authority waiting lists now exceeding 100 years for a familysized social home.

We are committed to playing our part as this crisis continues to escalate. In the last year, we’ve built 125 new properties, providing stable homes for up to 458 people. This is in addition to the more than 378 households we welcomed to our existing homes.

With a further 500 homes in the pipeline across twenty locations, we are making substantial progress towards our plans to build 1,700 more local affordable homes by 2034. Energy efficiency remains a priority with 100% of our new homes achieving EPC ‘B’ or above.

Despite the challenging market, we also achieved our joint highest shared ownership sales helping 64 families on to the housing ladder and providing a surplus of £2M to reinvest.

Supporting our customers and communities

In September, we invited customers to take part in our customer conversation survey to find out their priorities for Selwood Housing. Of almost 1200 responses received, 84% of customers said they felt safe in their neighbourhood and most felt they had a well-maintained home with a repairs appointment system that worked well for them.

Almost a quarter said they found it difficult to heat their homes due to the cost of energy bills, so we were pleased to secure £25,000 from Wiltshire Council’s Household Support fund. This funding enabled us to provide support to customers in 250 low-income households struggling with essential costs. Helping our customers maintain their tenancies has allowed us to minimise rent arrears to 0.6%, one of lowest in the social housing sector.

Throughout the year, we also invited customers to share their ideas about ways to improve our services and decision making. We offered at least one involvement opportunity every month with customers sharing their voices on services and policies including our development strategy, contractors’ code of conduct, antisocial behaviour, succession policy and Selwood Housing’s values.

Our Stronger Communities fund gave £30,000, plus an additional £233,000 in matchfunding from local and national grants, to support twenty projects run by local charities and community groups. This included renovating outdoor nursery spaces, a community pantry and funding courses to help young people transition into independent living.

3

Selwood Housing Society Ltd

As part of our Priority Neighbourhoods initiative, we completed the installation of CCTV cameras on Westleigh Estate in Warminster, helping to make the estate a safer and more welcoming place for all its residents. The project, in partnership with Wiltshire Council, Warminster Town Council and Wiltshire Police, was in response to concerns raised by customers about antisocial behaviour and safety.

Supporting our people to deliver services

Thanks to the hard work and commitment of our people who continue to deliver in an extraordinarily complex environment, our service delivery and financial performance results for the year were excellent.

Our teams successfully delivered a range of complex improvement projects including migrating our IT infrastructure to the cloud, the launch of the first phase of Dynamics, our new housing management platform, plus the implementation of contracts with new building material suppliers. These will help increase our efficiency and deliver procurement savings in the region of £1m annually, releasing funds to invest in new and improved homes for the future.

With our staff consistently demonstrating their passion and dedication to our customers, we continued to invest in training, development and extending professional skills.

In June, we held an in-person all staff event where we shared our plans and thanked our people. This was also an opportunity for staff to review Selwood Housing’s values, which define and underpin how we work. As a result of their suggestions and further input from customers, we agreed new values to take us forward. We also launched our Big Welcome, a new week-long induction to help new starters settle in and understand the organisation and their roles faster.

Our staff turnover rates improved significantly this year, reducing from 25% to 15% at year end. We were also pleased to retain our Investors in People Gold, increase our monthly staff survey score average and reduce sickness levels.

Looking forward

Our recently published corporate strategy for 2025–2028 outlines the targets we seek to achieve in the areas that are most important to our customers - repairs, safety, and the environmental efficiency of our homes.

There are considerable challenges ahead, but I am confident that our people will continue to demonstrate exceptional commitment and tenacity to deliver quality homes and services for our customers.

Koo Chai Young Li Mow Ching Chair

4

Selwood Housing Society Ltd

Group strategic report including the report of the board for the year ended 31 March 2025

The group board presents its report and audited consolidated financial statements of Selwood Housing Society Limited and its subsidiary undertakings, for the year ended 31 March 2025.

Selwood Housing Group

Selwood Housing Society Limited (Selwood Housing) is the parent company of Silcoa Limited, Cottsbury Homes Limited, and Selwood DevCo Limited.

Selwood Housing is a company limited by guarantee governed by its articles of association. It is registered with the Charity Commission and the Regulator of Social Housing (RSH) and administered by a board of non-executive directors (the board).

Principal activities

The principal activities of the group are the development and provision of affordable housing, incorporating the letting, management and maintenance of dwellings for people in housing need and the provision of support services.

Overview of the business

The purpose of Selwood Housing is to develop, manage and maintain quality affordable housing and provide support services for the benefit of people in housing need.

We manage and maintain homes across Wiltshire, Bath and North East Somerset, and the parts of the county of Somerset which are within one hour’s drive of our head office in Trowbridge. We have a strong local presence and involvement with our local communities. We own 7,291 properties and are the largest social landlord in the West of Wiltshire.

The Regulator of Social Housing refreshed their assessment of Selwood’s compliance with the Governance and Financial Viability Standard in December 2024 which resulted in Selwood Housing retaining our G1 governance rating and V2 viability rating.

We have an active programme to develop new homes in our areas of operation, offering a range of affordable homes that meet the needs identified by our local authority partners. In addition to substantial investment in new homes, we are continuing a large programme of improvements to our existing properties.

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Overview of the business continued

We are committed to neighbourhoods, customers and excellence and we undertake a wide range of community activities. We provide lifeline services to our tenants.

Selwood Housing has three commercial subsidiaries, set up for specific purposes. They are all wholly owned by Selwood Housing and the profits they make stay within the group to support Selwood Housing’s charitable objectives.

Silcoa Ltd was our property repairs and improvement company which was integrated into Selwood Housing on the 1 July 2021. No activity remains in the company and so is now dormant.

Cottsbury Homes Ltd is a company that develops homes for market sale. It is not currently active.

Selwood DevCo Ltd is the owner of photovoltaic (PV) panels which are installed on 115 properties owned by Selwood Housing. The company also develops some land led schemes to golden brick stage.

Objectives and strategy

The board has referred to the Charity Commission’s general guidance on public benefit when reviewing Selwood Housing’s aims and objectives and in planning our future activities. The board has considered how planned activities for the year will contribute to the aims and objectives they have set.

Our strategy is underpinned by four guiding principles:

These principles will guide our work over the coming years. Our corporate plan develops these into the key areas for us to develop in the next few years.

Our key challenge is:

“To be able to deliver quickly on a wide range of complicated, changing targets to meet rising expectations from customers and others”

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Objectives and strategy continued

The key areas for us in the next few years are:

The specific targets for 2025/26 are:

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Objectives and strategy continued

Selwood Housing’s values

Our recently updated values, following reviews with our customers and our staff are:

Operational performance

Financial review

The group turnover in the year was £57m (2024: £53m). This represents an increase of 8% (2024: increase of 15%).

Operating costs are higher than last year at £40m (2024: £38m), this is mainly due to inflationary increases and the completion of some large, planned programmes of work in year. Operating costs include depreciation charges of £9.0m (2024: £9.0m), a key accounting estimate. No impairment losses have been recognised in the year. In 2024 £1m was recognised in respect of two blocks of flats in Warminster that the Board had approved for demolition.

The surplus from the sale of properties was in line with last year at £3.4m (2024: £3.4m) due to the continued disposal programme in line with our current asset management strategy. The properties sold included a mix of right to buy, right to acquire, staircasing and open market sales. Selwood Housing remains committed to considering the suitability and efficiency of our properties.

The overall surplus for the Group in the year is £7.4m, (2024: £6.8m), higher than last year despite increased operational and interest costs.

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Operational performance continued

Selwood Housing carries fixed assets in its financial statements at cost (not valuation). Selwood Housing’s residential property asset base at cost was £588m as of 31 March 2025 (2024: £562m). This increase was a combination of the addition of newly developed homes and works to existing properties.

The pension fund shows an unadjusted net asset surplus of £8.32 million but has been restricted to £nil (2024: liability £nil), as the recoverability of this asset would require a right to reduce employer contributions or to request a refund from the fund. Neither of these options are available.

The existing use value – social housing (EUV-SH) of Selwood Housing’s properties was estimated to be in the region of £466m at 31 March 2025 (2024: £471m). The directors consider there is no impairment following an impairment review conducted as described in the notes to these accounts.

Selwood Housing finances its property assets through a loan facility of £94.1m (2024: £101.8m) made available by Nationwide Building Society, a £50m (2024: £50m) facility from Affordable Housing Finance Plc (AHF), a £55m (2024: £55m) facility from Lloyds Bank Plc and a £20m facility from MORhomes Plc. At 31 March 2025 £74.1m (2024: £81.8m) of the Nationwide facility had been drawn down. This left £20m (2024: £20m) available from Nationwide. £50m (2024: £50m) of the AHF funding had been drawn down at year end, £49.5m had been drawn from the Lloyds Bank facility (2024: £32.5m) and £20m from Morhomes Plc (2024: £20m)

The board of Selwood Housing Group has adopted a treasury management policy statement. This sets out the group’s policies concerning all treasury management activities, including managing cash flow, borrowing, investing, and hedging. In the financial year net cash inflow from operating activities of £23m (2024: £15.2m) helped to fund net cash spend of £18.9m (2024: £26.2m) on developing new homes before receipt of social housing grant.

In the 2024/25 corporate plan Selwood Housing had several key areas of focus. Our achievements against each of those areas during 2024/25 include the following:

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Operational performance continued

Key risks

Financial risk management policy

Selwood Housing’s operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk, interest rate risk and covenant breach risk.

The main credit risk for Selwood Housing relates to non-payment of rents from tenants. We actively manage arrears ensuring tenancies are affordable for new tenants. We provide clear payment terms, a structured process of credit control and regular review of individual tenants' accounts.

The risk that Selwood Housing does not have sufficient liquid assets to carry on its activities is managed through active cash flow monitoring and forecasting.

Interest rate risk for Selwood Housing is particularly relevant regarding its loan facilities with Nationwide Building Society and Lloyds Bank plc. Selwood Housing has in place a risk management programme and treasury management strategy that seeks to limit the adverse effects of interest rate fluctuations on its financial performance.

Covenant performance is monitored throughout the year by the board.

Selwood Housing is not directly exposed to commodity price or exchange rate risk as a result of its operations.

The group maintains effective control over the risks in the business using an online tool, Decision Time. The risk register for Selwood Housing and all its subsidiaries is regularly reviewed by the board.

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Key risks continued

The Selwood Housing risk register identifies the most significant risks to the business, the causes of these risks, controls that are in place and mitigating actions that are being taken to reduce the impact and/or probability of those risks. The register covers both strategic and operational risks. The major strategic risk areas and mitigating controls identified on the risk register are:

Risk Area Key Controls/Actions
Lack of financial resilience to
withstand changing
socioeconomic environment		 •
Budget and business plan approved by the board and reported on regularly.
•
Financial plan stress tested with various scenarios.
•
Value for money strategy with regular review.
•
New contracts in place for key repairs and maintenance suppliers.
•
Contracts for supply of goods and services are regularly reviewed.
•
Identify and monitor appropriate benchmarking.
Landlord Health and Safety
– Failure to adhere to
legislative, regulatory and
best practice compliance
requirements		 •
Weekly reports to executive team meetings on all key compliance areas.
•
Quarterly reports to Group assets and development committee.
•
External audits carried out by independent bodies
•
Extensive training plans for all staff involved in health and safety activities.
•
Insurance cover of contractors obtained as part of contract negotiation and
set up and then monitored by assets team
Risk that people and culture
do not allow us to deliver
strategic objectives		 •
Executive portfolio board in place to prioritise projects and agree resource
allocation.
•
Project Brief and Business Case approval process in place.
•
Personal performance review process, incorporating skills and development
plans.
•
Management development and training in place.
•
Professional development for relevant staff.
•
Flexible working policy determines approach to hybrid working.
•
Training and development programmes for digital skills.
New homes delivery does
not meet corporate plan
targets		 •
Development strategy approved by the board and progress reviewed on a
quarterly basis by Group assets and development committee.
•
Comprehensive monitoring and reporting of progress with the development
programme.
•
Sites, suppliers, and key materials reviewed daily.
•
Regular dialogues with relevant local authorities, agents, developers, and
landowners to seek future opportunities.
•
Designand quality specificationsmeet the SelwoodHousing strategy.
Asset management –
providing homes that are
decent, warm and meet
required need		 •
Asset management strategy and plan reported to Group Asset and
Development Committee (GADC) on a quarterly basis.
•
Provision for expenditure in financial plan to get properties to EPC C by 2030
and net zero carbon by 2050.
•
Internal stock condition survey target in place.
•
Budgeting and forecast process and subsequent monitoring.
•
Contract management and procurement processes in place.
•
Damp and mould action plan monitored by GADC.
•
Internal stock condition survey target of 205 per annum
Risk of Cyber security attack •
ICT and data protection policies in place.
•
Internal periodic reviews to ensure appropriate security levels in place.
•
Disciplinary procedures in place.
•
New 24/7 security operations centre in place with cloud partners to improve
monitoring and resilience
•
Virtual network firewalls strengthened to prevent generic attacks
•
Business continuity plan includes planto address cyber risks.

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Environmental, Social & Governance (ESG) matters

Selwood Housing is dedicated to achieving its environmental, social, and governance (ESG) objectives by providing affordable homes both presently and in the future. We ensure that these homes meet the highest possible environmental standards while complying with our regulatory and governance requirements. In 2024, Selwood issued its third ESG report, using the newly revised version 2 of the Sustainability Reporting Standard (SRS). This report aligns with our key strategies for constructing new homes and managing our existing properties.

Environmental

Selwood Housing aims to ensure all homes meet SAP C standard by 2030, integrating low carbon and renewable technologies to achieve net-zero carbon targets by 2050. We build new properties to high environmental standards and invest in improving existing ones. Our key performance indicator is the average SAP rating of all housing properties, measuring their environmental performance.

Streamlined Energy and Carbon Reporting

Selwood Housing has created a Streamlined Energy and Carbon Reporting (SECR) statement to comply with the 2019 SECR Regulations. This third-party verified report compares current emissions to the previous financial year for annual reporting, with all emissions shown as carbon dioxide equivalents (CO2e) rounded to two decimal places.

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Energy efficiency action statement

Reported emissions and energy use data for 1st April 2024 – 31st March 2025 Reported emissions and energy use data for 1st April 2024 – 31st March 2025 Reported emissions and energy use data for 1st April 2024 – 31st March 2025
Current reporting year 1st April Previous reporting year 1st April
2024 – 31st March 2025 2023 – 31st March 2024
Emissions from combustion of gas 200.26 tonnes CO2e **214.20 tonnes CO2e **
tCO2e (Scope 1) [mandatory] 12.40 tonnes CO2e office usage 11.25 tonnes CO2e office usage
14.08 tonnes CO2e communal areas 13.75 tonnes CO2e communal areas
173.78 tonnes CO2e communal heating 189.20 tonnes CO2e communal heating
systems systems
Emissions from combustion of fuel for 357.06 tonnes CO2e **311.08 tonnes CO2e **
transport purposes (Scope 1) 357.06 tonnes CO2e DLO
[mandatory]
Emissions from business travel in 32.22 tonnes CO2e **31.78 tonnes CO2e **
rental cars or employee-owned
vehicles where company is responsible
for purchasing the fuel (Scope 3)
[mandatory]
Emissions from purchased electricity 166.29 tonnes CO2e **172.94 tonnes CO2e **
(Scope 2, location-based) 12.79 tonnes CO2e office usage 17.17 tonnes CO2e office usage

[mandatory]		 153.50 tonnes CO2e communal areas 155.77 tonnes CO2e communal areas
See below for transmission and See below for transmission and
distribution losses distribution losses
Total gross CO2e based on above - **755.82 tonnes CO2e ** **730.00 tonnes CO2e **
[mandatory]
Energy consumption used to calculate Gas: 1,405,612.30 kWh Gas: 1,170,970 kWh
above emissions: kWh [mandatory] – Electricity: 806,139 kWh Electricity: 835,169 kWh
optional to provide separate figures for
Transport fuel: 1,405,612 kWh		 Transport fuel: 1,301,138 kWh
gas, electricity, transport fuel and Business travel: 134,012 kWh Business travel: 130,661 kWh
other energy sources Total: 3,437,683.82 kWh Total: 3,437,938 kWh
Intensity ratio: tCO2e gross figure 119.02 kg CO2e per home managed 110.89 kg CO2e per home managed
based on mandatory fields above (exc. office emissions) (exc. office emissions)
[mandatory]
14.50 Office intensity: kg CO2e per Office intensity: 17.22 kg CO2e per
m2 m2
Methodology [mandatory] SHIFT methodologySECR Reporting SHIFT Environment
Using DEFRA (2024) Conversion Factors in line with Environmental
Reporting Guidelines (2019) as the majority of the financial year falls
into the calendar year 2024. Comparison data from the previous
year’s SECR is using DEFRA 2023 Conversion Factors.

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Energy efficiency action statement continued

Emissions from purchased electricity Emissions from purchased electricity Only reporting on location based Only reporting on location based Only reporting on location based
(Scope 2, market-based factor): tCO2e
[optional]
Emissions from generation of **14.70 tonnes CO2e ** **14.96 tonnes CO2e **
electricity that is consumed in a Transmission and distribution Transmission and distribution
transmission and distribution system (T&D) losses associated with UK (T&D) losses associated with UK
for which the company does not own electricity electricity
or control (Scope 3) / tCO2e
[optional]
Emissions from employee business 32.22 tonnes CO2e 31.78 tonnes CO2e
travel for which the company does not 32.22 tonnes CO2e employee vehicles
 31.78 tonnes CO2e employee vehicles

own or control (Scope 3) / tCO2e		 0.00 (Nil) tonnes CO2e public 0.00 tonnes CO2e public transport
transport
[optional]
Emissions from leased assets, The regulated emissions from the The regulated emissions from the
franchises, and outsourced activities independently heated homes we independently heated homes we manage
(Scope 3) / tCO2e [optional] manage far outweigh our operational
far outweigh our operational emissions and
emissions and are therefore reported are therefore reported here on a voluntary
here on a voluntary basis. Our SHIFT basis. Our SHIFT methodology estimated
methodology estimated emissions at emissions at 16,041.41 tonnes in total, or
13,251.38 tonnes in total, or 2.19 2.47 tonnes per home managed.
tonnesper home managed.
Total gross Scope 3 emissions / 13,298.29 tonnes CO2e 16,088.15 tonnes CO2e
tCO2e [optional]
Total gross Scope 1, Scope 2 14,021.90 tonnes CO2e 16,786.38 tonnes CO2e
[location / market] & Scope 3
emissions / tCO2e [optional]
Additional intensity ratio: tCO2e 2.28 tonnes per home managed for 2.55 tonnes per home managed for total
net figure / e.g., £100,000 total Scope 1, 2 and 3 emissions Scope 1, 2 and 3 emissions recorded
revenue recorded
[optional]
Third Party verification [optional] SHIFT Environment

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Energy efficiency action statement continued

During the period 1st April 2024 to 31st March 2025, we installed:

Some of the work in the upgrades listed above form part of the programme of works that is utilising the £1.4m Social Housing decarbonisation funding (SHDF) that was secured last year to deliver fabric first decarbonisation of our properties that have an EPC rating below EPC C. During the year we successfully secured £2.5m of new funding through the Warm homes social housing fund which we will match to extend our programme over the next three years.

Social

Affordability

The Valuation Office Agency sets the Local Housing Allowance (LHA) affordability criteria at the 30th centile point between what, in the local rent officer’s opinion, are the highest and lowest non-exceptional rent in a Broad Rental Market Area. These statistics are used as a reference point for housing benefit and are a good indication of rent levels which are affordable in an area. Our valuer’s have compared our rents with the average sector rent and LHA in the same localities. Selwood Housing’s rents are demonstrably lower than those of other housing associations in the same area and are affordable when compared with the local housing allowance.

Customer Involvement & Communities Team

The I&C team’s work continues to evolve as the work it delivers is key to Selwood Housing meeting the requirements of the Transparency, Influence & Accountability Standard introduced by the Regulator for Social Housing in April of this year. Our key aim is to bring clear customers’ voices and views into service design through inclusive, efficient, and effective methods whilst flexibly responding to the needs of the business. This has been a strong year, building on our foundations as a team in 2023. We have renewed our team’s strategy which we are taking to Board in July. We have involved customers during the recent revision. This report highlights some of the major achievements and details how we are meeting our regulatory requirements.

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Scrutiny

The Marketing and Communications team have now acted on all actions taken forward from the scrutiny team’s review into operational communications. The results include:

Their follow-up review into Damp & Mould services was approved by board in July 2024. The scrutiny team then carried out a review to inform the new Asset Management Strategy and focused on Planned Programme prioritisation. The team reported their findings to Board in March 2025. The recommendations focused more on how we communicate to customers throughout the process. All seven recommendations were agreed by management, six have been completed and the final one has been scheduled. They have just started their new review into General Needs Caretaking.

Four new members have joined during 2024-2025 and have all undergone induction and mandatory training. The team have continued to develop their knowledge and skills through TPAS membership and courses and sent delegates to three of the regional & national Tenant Engagement Conferences in May, July and October, giving them an opportunity to network with other scrutiny members from across the country.

Working with the business performance & insight team we produce an information pack to share with the scrutiny team ahead of quarterly business meetings, so that they have the key information on ‘Rant & Rave’ transactional customer surveys, Tenant Satisfaction Measure data and finance & performance ahead of the meeting presentations.

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Together with Tenants

Selwood Housing adopted the National Housing Federation’s Together with Tenants Charter in 2022. In April 2024 we agreed a new action plan with the scrutiny team and managers across the business as to how we meet the charter’s commitments. We have added actions against the new 7[th] commitment of Equality, Diversity & Inclusion. Ahead of each quarterly business meeting the I&C team provide our scrutiny team with written updates on the progress of each action within the plan. This allows them time to reflect, discuss and bring questions/challenges to the quarterly business meeting. Each member takes ownership of monitoring one or two commitments.

Customer involvement

We now ensure that all creations or rewrites of customer-facing policies and strategies incorporate customer voice. We have developed strong working relationships with heads of service and are increasing the understanding of what we do and the importance of hearing and considering the needs and views of those who live in our housing.

Over 2024-2025 we have worked on one strategy, ten policies and four customer experiences plus a code of conduct and fire safety assessment. Customers have also helped us revise our company values. These have been delivered through a mixture of in-person and online focus groups, community pop-ups, digital questionnaires, surveys and opinion polls with a total of 195 participants.

Communications - ‘Warm List’ and newsletter

Our Customer Involvement newsletter is sent to the I&C ‘warm list’ which is a list of customers who have signed up to hear more about involvement. It contains details of all forthcoming involvement opportunities plus updates on recent projects which we call our ‘you said, we did’ reporting. This maintains regular engagement, interest and recognises the value of our volunteers and the importance Selwood Housing puts on hearing their customers’ voices. We have started trialling a quarterly postal newsletter to 227 customers and monthly electronic newsletters to 1440 customers with open rate of above 50%.

Customer Conversation 2024

This is our household survey that is carried out every three years, aimed at understanding our customers priorities and responses to a series of questions, the results of which are then used to shape our thinking and influence our services and policies. We sent out 8593 copies of the survey: one to each individual tenant (including joint tenants) and to all shared ownership customers. We received 1,192 responses (789 online and 403 postal returns).

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Customer Conversation 2024 continued

The survey asked for feedback on our main service areas, and we had a response rate of 14% providing a solid level of representation. The margin of error, using a confidence level of 95% and based on 1192 responses received out of a population of 8593 surveys sent out, is +/- 2.63%. Most respondents (over 80%) were aware of customer involvement opportunities, with nearly 10% of the remainder keen to know more. We are currently monitoring an action plan based on customers’ responses.

Equality, Diversity & Inclusion

We have started collecting EDI information anonymously from involved customers who are willing to share their details. This helps us benchmark the diversity of those we are reaching, so that we can improve engagement in demographics not attending. We are part of the new EDI project and recently used the Customer Conversation 2024 to collect new & updated data so that we can better understand their needs and direct our services in line with new consumer standards.

Complaints Forum

The complaints’ staffing team has grown and taken on full ownership of the customer forum. The forum was established in 2022-2023 following a recommendation from a scrutiny review. The I&C team worked with the complaints manager to create the forum and its processes. We continue to help with advice, promotion and the recruitment of new customers. There are six members that meet quarterly to review five recently closed complaints and score how they were managed against set criteria.

Sheltered Forum

We also helped the initiation and set-up of a new Sheltered Housing Forum, as with the complaints’ forum, the sheltered staffing team have taken on facilitation of this.

Decarbonisation project – resident engagement:

We supported the bid writing for Wave 3 of the Decarbonisation project.

Warminster Rehousing

We supported the customer consultation stage with advice, drop-ins, 121 visits and managing phone & email correspondence.

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Communities

We supported the legacy project from the Warminster Priority Neighbourhoods’ project of 2023-2024. We led on applying for grants and secured £15,000 from the Area Board, the Police & Crime Commissioner and the Town Council. These monies have funded a joint project with Wiltshire Police to install & manage CCTV in one of our neighbourhoods with high criminal activity and anti-social behaviour.

We have renewed our funding commitment to local charity, Trowbridge Futures, for another three years at the same amount. This £30,000 contract helps fund a neighbourhood connector who is working across our three main housing estates in Trowbridge. They facilitate and promote a kindness cafe, veterans’ group, cookery sessions and a community fridge which feeds 180 people a week on one of our larger estates. They have been hosting pop up health clinics with the NHS, helping to reach those who struggle to access public services for a variety of reasons such as social isolation and mobility issues. Visitors to the pop-up clinics have received vaccinations, blood pressure readings and general health advice including diet and nutrition. The team have been working with Wiltshire Council to host accessible and manageable fitness sessions and the demand from local residents has been high.

Stronger Communities Funding

During 2024-2025 we distributed £30,325 from our Stronger Communities Fund to enable 20 community projects across 8 towns & villages where we have our housing stock. We have recently held a customer focus group to inform the renewal of the Stronger Communities Funding Policy which is revised every 3 years.

We have worked with the procurement team to reinstall the social value clause in appropriate high value contracts of over £1 million. Contract Managers and Procurement now have a process in place to engage with the I&C team pre-award; payments will be made on an annual basis, on the anniversary of the contract’s commencement. This decision will guarantee ongoing funding to boost the Stronger Community Fund and allow us to continue supporting our communities. We have joined a local funding network to further promote the fund to a wider area of our housing stock.

As part of our application process, we continue to request details of total project cost, breakdown of all costs and how much of the project is self-funded. We also ask if they’re applying to other grant funders and what amount they’ve requested. In most cases, being approved for one grant will often unlock access to another grant, therefore helping secure more funding for the community. We only pay out once any necessary match-funding is confirmed so that we know the project is viable. We can then calculate how much money has been brought into our communities in total. Accumulatively these 20 projects secured an additional £233,596 in addition to the money donated from us, that was spent in our communities.

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Resident Support

Selwood Housing’s charitable donations were £28.5k (2024: £28.5k) during the year to 31 March 2025. In addition to this we allow various community groups to utilise two garages free of charge and we lease The Hub to Trowbridge Town Council for a peppercorn rent. We estimate the rental income foregone on these to be equal to donations of around £9.5k (2024: £9k).

Governance

Selwood Housing is fully committed to the principles of openness, accountability, and competence. We welcome and support the principal recommendations laid down in the National Housing Federation’s Excellence in Governance, Code for members (revised 2020). The code was reviewed and adopted by the board in December 2021. The board concluded that we are fully compliant with the code.

Staff wellbeing

Our ability to meet our objectives and commitments to tenants and other customers in an efficient and effective manner depends on the expertise, commitment, and enthusiasm of all our employees. We take seriously the need to be an employer that recruits high calibre staff, we then ensure they are motivated, skilled, and able to deliver for our customers and provide an excellent service. This is a guiding principle in our corporate strategy, as described above.

Selwood Housing provides information on its objectives, progress and activities through regular team meetings, staff briefings, CEO monthly updates and our staff forum. Selwood Housing seeks employees’ views on how to improve services and on matters of common concern through our monthly pulse survey. The executive team also take part in a monthly live question and answer session with all staff. The group supports the employment of a diverse workforce, both in recruitment and in the retention of employees.

Board and executive composition

At 31 March 2025 Selwood Housing’s board was made up of four females and five male directors. The senior management team was made up of three male and two female members.

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Committees of the group board

During the year the following committees were in operation:

All other matters including strategy, funding decisions, business planning and other major strategic decisions are considered directly by the full group board.

Board and executive directors

The group board and executive directors of Selwood Housing who served during the financial year are listed on page 1. The group board comprises of nine members, who are regarded as non-executive directors for legal purposes.

The board is responsible for the governance of Selwood Housing Group. Their role in practice may be summarised as:

Board members regularly participate in training and development to ensure they maintain and develop their skills and have a high level of awareness of current issues in the social housing sector.

Board members undergo a formal appraisal of performance on an annual basis. The format of the appraisal involves a review of everyone’s performance over the year and an assessment of training, skills, and development needs.

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Board and executive directors continued

Each board member is expected to take responsibility for fulfilling their training plan while Selwood Housing Group is committed to ensuring that resources are in place to enable this. As part of the appraisal process the board also considers its collective effectiveness in delivering the aims and objectives in the corporate plan.

At 31 March 2025, the executive directors consisted of the group chief executive, the group chief financial officer, the group operations director, the group development director, the group transformation and people director.

Insurance policies indemnify board members and staff against liability when acting for Selwood Housing. These policies were in force throughout the financial year and at the date of approval of the financial statements. The indemnity is a qualifying third-party indemnity.

Board members are recruited based on selecting skill sets, the demographic makeup and experience that are required for the existing board.

Candidates are short-listed by the interview panel made up of the group chief executive, two appropriate board members and the group transformation and people director against the board director specification, which is contained in Selwood Housing’s governance manual. Interviews are carried out by the interview panel and the best candidate for the role is selected. The procedure used is full, fair, and inclusive. Each new board member goes through a structured induction.

Remuneration

Board members are remunerated for their services and are entitled to claim out of pocket expenses such as travelling. Travel costs to and from Selwood Housing’s offices are reimbursed as a taxable benefit. Some board members choose not to reclaim their travel costs.

Payments to board members are shown in note 10 to the financial statements, which shows the actual payments in the financial year, the level of payments and the proportion which the total amount paid forms of Selwood Housing’s annual turnover.

Any changes in remuneration do not take effect until approved by the company in the general meeting and increases to board members’ remuneration do not take effect more frequently than once every three years.

The board decides the pay and benefits of the executive directors and agrees the terms on which the chief executive can set other staff salaries, within the agreed market pay based framework.

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The executive directors are either members of the Wiltshire Pension Scheme or members of the group personal pension plan, depending on when they joined the organisation. They participate in the scheme on the same terms as all other eligible staff. Selwood Housing contributes to the schemes on behalf of all eligible staff and does not offer alternative benefits such as cars.

There are no service contracts for executive directors. They are employed on similar terms to other staff, with a notice period of three months.

Reserves policy

Selwood Housing’s reserves are invested in its properties. They have been used to fund the development of new homes for letting to people in housing need and the improvement and replacement of components in existing properties. They provide working capital and help Selwood Housing to maximise its borrowing capacity. Selwood Housing sets a target for reserves in its 30-year business plan and ensures that actual reserves stay in line with the plan.

Regulatory standards

The board undertook a review of Selwood Housing’s compliance with the Regulator of Social Housing’s governance and financial viability standard in March 2025, and the board concluded that Selwood Housing complies with the standard.

Value for Money

Selwood Housing Group’s approach to value for money (VfM)

Value for money forms one of the key pillars of our principles and values as outlined in our corporate strategy:

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Group strategic report including the report of the board for the year ended 31 March 2025 continued

Value for money continued

Our VfM strategy was reviewed in 2024 and updated targets agreed with the board in October 2024.

The aims of our value for money strategy are:

Value for money for Selwood Housing includes considering:

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Group strategic report including the report of the board for the year ended 31 March 2025 continued

Value for Money continued

Value for Money Standard (VfM)

The Regulator of Social Housing (RSH) issued the VfM Standard in April 2018 which includes a requirement for registered providers to publish their performance against a series of common metrics with which to measure economy, efficiency and effectiveness as set by the Regulator. The table below compares our performance over the last three years with our Housemark peer group, the RSH global accounts performance and our targets for next year.

Performance Metric
2022/23
Actual
2023/24
Actual
2024/25
Target		 2024/25
Actual		 2025/26
Target
2023/24
Housemark
Median
2023/24
Sector
Median
*
Business health % efficiency
Operating margin
- Overall
18.1%
17.7%
18.1%		 19.5% 17.4%
19.0%
18.5%
Operating margin
- Social housing lettings
18.9%
17.8%
17.8%		 20.6% 17.2%
21.3%
20.4%
Interest cover % (EBITDA-MRI)
260.4%
109.6%
101.0%		 109.3% 94.0%
129.0%
122.0%
Headline social housing cost per
unit £ CPU
£4,332
£5,426
£5,961		 £5,824 £6,026
£5,089
£5,136
Return on capital employed %
2.1%
2.6%
2.6%		 2.8% 2.3%
2.98%
2.8%
Development & investment
New supply delivered %
- Social housing units
2.2%
2.4%
2.0%		 1.7% 2.0%
1.5%
1.4%
Gearing %
33.6%
36.0%
37.3%		 36.4% 40.2%
48.9%
45.6%
Reinvestment %
7.2%
7.4%
7.2%		 6.0% 8.8%
10.1%
7.7%

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Group strategic report including the report of the board for the year ended 31 March 2025 continued

Value for Money continued

The economy remained challenging during the year with interest rates remaining high and inflation volatile, however Selwood’s financial performance has remained strong, achieving value for money results better than target for most of the regulator measures.

Selwood's headline social housing cost per unit (CPU) increased by 7% from the previous year due to inflation and higher volumes, especially in responsive repairs. This was partly offset by lower materials costs from new supplier agreements finalised at the start of the year. Also, migration to the cloud and revised IT partnership agreements delivered additional savings in the second half of the year.

EBITDA-MRI interest cover (*) remained in line with the previous year, which was much better than expected due in part to the cost savings mentioned earlier and lower interest costs than anticipated. EBITDA-MRI is expected to fall in 25/26 to below 100% as more resource is being focused on our responsive and planned programmes to ensure we meet legislation changes like Awaab’s law. We do not have any covenants that are measured by EBITDA-MRI. The EBITDA covenants are being comfortably met at 3x the required cover. We expect this to remain achievable for the full length of the agreements. In May 2025, we completed a £75m fixed loan agreement with Saltaire Housing for the government backed Affordable Housing Grant Scheme (AHGS), drawing £50m, immediately reducing our interest rate risk.

Gearing was better than target and well below Selwood’s golden rule target of 50% and the existing loan covenant of 60%. Gearing measures the relationship between debt and tangible fixed housing assets will increase over the next few years as we borrow more money to fund our development programme and meet our environmental targets.

The improved return on capital employed (ROCE) was better than target due to an increase in gains from disposal of fixed assets. The board agreed to a targeted disposal strategy based on a variety of considerations such as energy performance, age, condition, and void properties that are not viable for relet without a significant investment beyond their 30-year return. This will continue to result in the disposal of a handful of properties over the coming years which will continue to boost the Selwood ROCE performance.

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Value for Money continued

----- Start of picture text -----
Operating Margin (overall) %
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
VfM LQ VfM Med VfM UQ Forecast ACTUAL
----- End of picture text -----

The operating margin has reversed its downward trend from recent years, increasing due to efficiency savings and the reclassification of certain planned decarbonisation projects to capital expenditure. Despite the increased complexity of tasks such as addressing damp and mould issues and fencing, our responsive repairs teams continue to maintain a daily completion rate of approximately three jobs per day per operative.

The transformation project, to develop and expand our system capabilities, improve our processes, and explore further efficiencies has also progressed with two modules going live during the year. This project continues to require additional staff and investment in new systems in the short term which impacts our operating margin.

The continuing focus on efficiency and improved systems and processes will help to maintain Selwood’s operating margin at their current levels before increasing in the medium term.

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Group strategic report including the report of the board for the year ended 31 March 2025 continued

Value for Money (continued)

----- Start of picture text -----
New supply delivered
(social housing units) %
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
VfM LQ VfM Med VfM UQ Forecast ACTUAL
----- End of picture text -----

The new supply delivery decreased during the year to achieve 125 new properties. This fall was expected in 24/25 as we reduce the risk of the impact of build cost inflation and possible development delays in the sector. Selwood are still committed to development and our corporate strategy lays out a plan to build 1,700 homes over 10 years, having delivered 296 in the first two years.

In addition to the indicators included in the VfM standard, two key areas of performance monitored by the board are rent loss due to empty properties as a % of rent due and current tenant arrears net of unpaid housing benefit as a % of rent due. These are financial KPIs but also helps us to fulfil our social purpose:

It has been another good year for our lettings team, both in terms of performance and of adapting service delivery to deliver in a changing environment.

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Group strategic report including the report of the board for the year ended 31 March 2025 continued

Value for Money (continued)

During the year the team let 378 homes, and the neighbourhoods team facilitated 84 mutual exchanges. At the end of March 2025, the void loss attributable to rented dwellings (including shared ownership) was 0.73% (March 2024 0.96%). The year saw more homes being let outside of our nomination agreements with local authority partners, which allowed us to rehouse 42 rented customers as part of the regeneration of the Alcock Crest and Westleigh sites in Warminster and find efficient and modern homes for existing 25 customers experiencing fuel poverty.

The graph below compares the actual performance and target for Selwood Housing with the quartiles calculated by HouseMark for our benchmarking group during 2023/24:

Despite the increased cost of living the collection of rent and service charges remains strong. This is in part due to our robust pre-tenancy assessment of affordability, the firm, consistent and timely intervention of the income team, and timely referrals to our tenancy sustainment coordinators and financial inclusion partners.

The strong collection ethos has shone through again this year with only 6 evictions taking place. The principles of timely support and decisive intervention have resulted in another top-quartile performance from the income team of 0.53% current customer arrears.

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Group strategic report including the report of the board for the year ended 31 March 2025 continued

Value for Money (continued)

Supporting actions to deliver the 25/26 targets

To support the delivery of the targets set out for the value for money metrics shown above, we will:

Tenant Satisfaction Measures

Our tenant satisfaction measures for 2024/25 continue to show strong performance. All survey-based measures remain in the upper quartile of benchmark results seen across the sector this year, with overall satisfaction rising to 87%. These results are based on feedback from 615 customers who completed telephone surveys during the year. Notably, all measures have improved compared to the previous year—except for one, which saw a very slight decrease. The full results are shown below:

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Group strategic report including the report of the board for the year ended 31 March 2025 continued

Tenant Satisfaction Measures (continued)

Survey measures- LCRA only Selwood
2023/24		 Selwood
2024/25
TP01 Proportion of respondents who report that they are satisfied with the
overall service from their landlord.
84.1% 87.0%
TP02
Proportion of respondents who have received a repair in the last 12
months who report that they are satisfied with the overall repairs
service.
82.1% 84.4%
TP03 Proportion of respondents who have received a repair in the last 12
months who report that they are satisfied with the time taken to
complete their most recent repair.
82.5% 82.2%
TP04 Proportion of respondents who report that they are satisfied that their
home is well maintained.
83.2% 85.3%
TP05 Proportion of respondents who report that they are satisfied that their
home is safe.
87.2% 90.5%
TP06 Proportion of respondents who report that they are satisfied that their
landlord listens to tenant views and acts upon them.
72.0% 75.1%
TP07 Proportion of respondents who report that they are satisfied that their
landlord keeps them informed about things that matter to them.
89.0% 90.2%
TP08 Proportion of respondents who report that they agree their landlord
treats them fairly and with respect.
86.7% 89.9%
TP09 Proportion of respondents who report making a complaint in the last 12
months who are satisfied with their landlord’s approach to complaints
handling.
46.0% 55.3%
TP10 Proportion of respondents with communal areas who report that they are
satisfied that their landlord keeps communal areas clean and well
maintained.
77.5% 79.6%
TP11 Proportion of respondents who report that they are satisfied that their
landlord makes a positive contribution to the neighbourhood.
79.3% 83.8%
TP12 Proportion of respondents who report that they are satisfied with their
landlord’s approach to handling anti-social behaviour.
69.3% 70.0%

The non-survey measures are also positive in either the upper or median quartile of benchmark results that we have seen across the sector with the majority showing improvement on the prior year.

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Tenant Satisfaction Measures (continued)

Non-survey measures Selwood
2023/24		 Selwood
2024/25
BS01 Proportion of homes for which all required gas safety checks have
been carried out.		 100.0%
100.0%
BS02 Proportion of homes for which all required fire risk assessments have
been carried out.		 100.0%
100.0%
BS03 Proportion of homes for which all required asbestos management
surveys or re-inspections have been carried out.		 90.9%
98.9%
BS04 Proportion of homes for which all required legionella risk assessments
have been carried out.		 100.0%
100.0%
BS05 Proportion of homes for which all required communal passenger lift
safety checks have been carried out.		 100.0%
100.0%
RP01 Proportion of homes that do not meet the Decent Homes Standard -
LCRA only-annual		 1.6%
1.0%
RP02 (1) Proportion of non-emergency responsive repairs completed within the
landlord’s target timescale.		 85.2%
85.2%
RP02 (2) Proportion of emergency responsive repairs completed within the
landlord’s target timescale		 99.7%
99.6%
CH01 (1) Number of stage one complaints received per 1,000 homes. 58.5
52.0

CH01 (2)
Number of stage two complaints received per 1,000 homes.		 9.0
7.4

CH02 (1)
Proportion of stage one complaints responded to within the Housing
Ombudsman’s Complaint Handling Code timescales.		 92.6%
98.7%
CH02 (2) Proportion of stage two complaints responded to within the Housing
Ombudsman’s Complaint Handling Code timescales.		 88.0%
98.1%
NM01 Number of anti-social behaviour cases, opened per 1,000 homes. 32.1
48.5
NM01 (2)
Number of anti-social behaviour cases that involve hate incidents
opened per 1,000 homes		 0.3
0.3

Section 172 Statement

The board of directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its stakeholders, and in doing so have regard to a range of matters including:

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Group strategic report including the report of the board for the year ended 31 March 2025 continued

Key decisions and matters that are of strategic importance to the company are appropriately informed by s172 factors. These include but are not limited to:

Through an open and transparent dialogue with our key stakeholders, we have been able to develop a clear understanding of their needs, assess their perspectives and monitor their impact on our strategic ambition and culture.

As part of the board’s decision-making process, the board considers the potential impact of decisions on relevant stakeholders whilst also having regard to several broader factors, including the impact of the company’s operations on the community and environment, responsible business practices and the likely consequences of decisions in the long term.

In making material decisions the board has sought to deliver benefit to our customers and the communities that we build in, provide secure employment opportunities and fair economic relationships with our suppliers.

Internal controls assurance

The board has overall responsibility for establishing and maintaining the whole system of internal control and for reviewing its effectiveness. The system of internal control is designed to manage, rather than eliminate, the risk of failure to achieve business objectives and to provide reasonable, and not absolute, assurance against material misstatement or loss.

The board receives and considers annual reports at the group audit and finance committee, group asset and development committee and management on the management of risk and control arrangements. The board review the strategic risk register at each of its meetings and receive the full risk register annually for review. The group audit and finance committee set the plans for internal audits based on the risk register to ensure that appropriate work is being undertaken to mitigate risks with corrective actions, where necessary.

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Internal controls assurance continued

The process for identifying, evaluating, and managing the strategic risks faced by Selwood Housing is ongoing, and has been in place prior to and throughout the period commencing 1 April 2024 up to the date of approval of the annual report and financial statements. The system for monitoring risk management is intuitive, interactive and puts emphasis on ensuring that good controls are in place and actions are progressed to deliver improvement in risk scores.

The arrangements adopted by the board in reviewing the effectiveness of the system of internal control, together with some of the key elements of the control framework include:

The board cannot delegate ultimate responsibility for the system of internal control, but it can, and has, delegated authority to the group audit and finance committee to review the effectiveness of the system of internal control regularly. The board receives minutes from each committee meeting.

The means by which the group audit and finance committee reviews the effectiveness of the system of internal control include considering internal audit reports, management assurances and the external audit reports. The committee agrees and monitors a three-year rolling programme of internal audit reviews, which have been undertaken by an independent audit firm, TIAA Limited.

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Group strategic report including the report of the board for the year ended 31 March 2025 continued

Internal controls assurance continued

The group audit and finance committee has received the executive team’s annual review of the effectiveness of the system of internal control for Selwood Housing, together with the annual report of the internal auditor and has reported its findings to the board.

The internal auditors concluded in their annual report that “TIAA is satisfied that, for the areas reviewed during the year, Selwood Housing Group, has reasonable and effective risk management, control and governance processes in place”. The board has in turn conducted its own annual review of the effectiveness of the system of internal control and considers there is nothing adverse to bring to the attention of company members.

Statement of responsibilities of the board

The board are responsible for preparing the strategic report, annual report, and the financial statements in accordance with applicable law and regulations.

Company law and social housing legislation require the board to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the board must not approve the financial statements unless they are satisfied that they give a true and fair view of the situation of the group and company and of the surplus of the group and company for that period.

In preparing these financial statements, the board are required to:

The board are responsible for keeping adequate accounting records that are sufficient to show and explain the group and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing 2022. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Group strategic report including the report of the board for the year ended 31 March 2025 continued Statement of responsibilities of the board continued

The board members are responsible for ensuring that the report of the board is prepared in accordance with the Statement of Recommended Practice for registered social housing providers 2018.

Financial statements are published on the group’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the group’s website is the responsibility of the board. The board responsibility also extends to the ongoing integrity of the financial statements contained therein.

Going concern

After making enquiries the board has a reasonable expectation that Selwood Housing has adequate resources to continue in operational existence for the foreseeable future. The board defines the foreseeable future as at least 12 months from the date of signing the financial statements. For this reason, it continues to adopt the going concern basis in the financial statements.

Annual General Meeting

The Annual General Meeting is planned to be held on 1[st] October 2025 in the boardroom of Selwood Housing’s office and available online.

Independent auditor

A resolution to appoint Selwood Housing’s auditor will be proposed at the forthcoming Annual General Meeting.

Statement of disclosure of information to auditor

So far as the board is aware, there is no relevant audit information of which the company’s auditor is unaware. Each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information.

Approval

The report of the board of directors including the strategic report was approved by the board on 3 July 2024 and signed on its behalf by:

Koo Chai Young Li Mow Ching Chair 2 July 2025

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Selwood Housing Society Ltd

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SELWOOD HOUSING SOCIETY LIMITED

Opinion

We have audited the financial statements of Selwood Housing Society Limited (“the Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2025 which comprise the consolidated and company statement of comprehensive income, the consolidated and company statement of financial position, the consolidated and company statements of changes in reserves, , the consolidated statement of cash flows and notes to the financial statements, including a summary of 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:

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 Group and 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 Board’s 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 Company’s or Group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The board are responsible for the other information. Other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information including the letter from the chair and Group Strategic Report including the

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Selwood Housing Society Ltd

operating and financial review and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken during the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained during the audit, we have not identified material misstatements in the Strategic report and Report of the Directors.

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:

Responsibilities of the board

As explained more fully in the statement of responsibilities of the board set out on page 35, the board is 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 board members 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 board are responsible for assessing the Group and the 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 board either intend to liquidate the Group or the 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.

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Selwood Housing Society Ltd

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 based on these financial statements.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the

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Selwood Housing Society Ltd

override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

Use of our report

This report is made solely to the members of the Company, as a body, in accordance with the Housing and Regeneration Act 2008 and 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Lee Cartwright (Senior Statutory Auditor) For and on behalf of Beever and Struthers, statutory auditor 20 Colmore Circus Queensway Birmingham B4 6AT Date: 16 July 2025

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Selwood Housing Society Ltd

Consolidated and company statement of comprehensive income for the year ended 31 March 2025

Turnover
Cost of sales
Operating costs
Gain on disposal of fixed assets
Operating surplus
Other interest receivable and similar income
Interest and financing costs
Other finance costs
Movement in fair value of investment properties
Surplus before taxation
Taxation on surplus
Surplus for the financial year
Actuarial loss / gain on defined benefit pension
scheme
Total comprehensive income for year		 Note Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
4
4
4
11
12
26
16
13
26		 56,922
52,699
56,948
52,772
(5,284)
(5,067)
(5,284)
(5,067)
(40,172)
(37,993)
(40,160)
(37,996)
3,423
3,401
3,423
3,401
14,889
13,040
14,927
13,110
133
136
116
117
(7,263)
(6,007)
(7,263)
(6,007)
14
9
14
9
0
(12)
0
(12)
7,773
7,166
7,794
7,217
3
3
0
0
7,776
7,169
7,794
7,217
(362)
(368)
(362)
(368)
7,414
6,801
7,432
6,849

The notes on pages 46 to 88 form part of these financial statements.

All activities relate to continuing operations.

Charity Commission Registration No 1141124 Company Limited by Guarantee - Registration No. 4168336 Registered with the Regulator of Social Housing No. LH4097

41

Selwood Housing Society Ltd

Consolidated and company statement of financial position at 31 March 2025

Note
Fixed assets
Tangible fixed assets - housing properties
14
Tangible fixed assets - other
15
Investment properties
16
Investments in companies
17
Current assets
Stocks
19
Debtors - receivable within 1 year
20
Cash and cash equivalents
20a
Creditors: amounts falling due within
1 year
21
Net current assets / (liabilities)
Total assets less current liabilities
Creditors: amounts falling due after
more than 1 year
22
Net assets excluding pension liability
Provision for deferred tax
30
Pension liability
26
Net assets
Capital and reserves
Income and expenditure reserve
Revaluation reserve		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000

514,226
494,602
514,278
494,654

4,007
3,655
3,738
3,356

340
340
340
340
125
125
3,225
3,225
518,698
498,722
521,581
501,575

4,857
6,103
2,871
4,432

4,203
4,596
4,192
4,288
6,731
6,601
5,497
5,594
15,791
17,300
12,560
14,314
(20,250)
(17,730)
(20,018)
(17,734)
(4,459)
(430)
(7,458)
(3,420)
514,239
498,292
514,123
498,155
(219,967)
(211,431)
(219,967)
(211,431)
294,272
286,861
294,156
286,724

(1)
(4)
0
0

0
0
0
0
294,271
286,857
294,156
286,724
166,797
157,448
166,682
157,315
127,474
129,409
127,474
129,409
294,271
286,857
294,156
286,724

The notes on pages 46 to 88 form part of these financial statements.

The financial statements were approved by the Board of Directors and authorised for issue on 2 July 2025

Koo Chai Young Li Mow Ching Chair

Mark Mayler Secretary

Charity Commission Registration No 1141124 Company Limited by Guarantee - Registration No. 4168336 Registered with the Regulator of Social Housing No. LH4097

42

Selwood Housing Society Ltd

Consolidated statement of changes in reserves for the year ended 31 March 2025

Group
Opening funds April 2023
Total comprehensive income for the year
Actuarial gains on defined benefit pension
scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Opening funds March 2024
Total comprehensive income for the year
Actuarial loss on defined benefit pension scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Closing total funds March 2025		 I&E
Revaluation
Total
Reserve
Reserve
£'000
£'000
£'000
148,692
131,364
280,056
7,169
0
7,169
(368)
0
(368)
6,801
0
6,801
1,955
(1,955)
0
157,448
129,409
286,857
7,776
0
7,776
(362)
0
(362)
7,414
0
7,414
1,935
(1,935)
(0)
166,797
127,474
294,271

The notes on pages 46 to 88 form part of these financial statements.

43

Selwood Housing Society Ltd

Company statement of changes in reserves for the year ended 31 March 2025

Company
Opening funds April 2023
Total comprehensive income for the year
Actuarial gains on defined benefit pension
scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Opening funds April 2024
Total comprehensive income for the year
Actuarial loss on defined benefit pension
scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Closing total funds March 2025		 I&E
Revaluation
Total
Reserve
Reserve
£'000
£'000
£'000
148,510
131,364 279,874
7,217
0
7,217
(368)
0
(368)
6,850
0
6,850
1,955
(1,955)
0
157,315
129,409
286,724
7,794
0
7,794
(362)
0
(362)
7,432
0
7,432
1,935
(1,935)
0
166,682
127,474
294,156

The notes on pages 46 to 88 form part of these financial statements.

44

Selwood Housing Society Ltd

Consolidated statement of cash flows for the year ended 31 March 2025

Note
Cash flows from operating activities
Surplus for the financial year
Adjustments for:
Depreciation of fixed assets - housing properties
14
Depreciation of fixed assets - other
15
Amortised grant
23
Interest payable and finance costs
Interest received
Difference between net pension expenses and
cash contribution
Proceeds from sale of fixed assets- housing
properties
11
Decrease /(Increase) in trade and other debtors
Decrease /(Increase) in stocks
Increase in trade and other creditors
Carrying amount of disposals
Movement in fair value of investment properties
Cash from operations
Taxation paid
Net cash generated from operating activities
Cash flows from investing activities
Proceeds from sale of fixed assets - housing
properties
11
Purchase of fixed assets - housing properties
14
Purchase of fixed assets - other
15
Purchase of investments
Receipt of grant
23
Interest received
Net cash from investing activities
Cashflows from financing activities
Interest paid
12
Taxation Paid
New loans
Debt issue costs incurred
Repayment of loans
25
Net cash used in financing activities
Net (decrease) / increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2025
2024
£'000
£'000
7,773
7,166
9,067
8,649
282
273
(562)
(413)
7,249
5,998
(133)
(136)
(348)
(359)
(5,000)
(5,043)
393
(1,282)
1,246
(1,263)
1,309
(1,137)
1,818
2,712
0
12
23,094
15,177
0
0
23,094
15,177
5,000
5,043
(30,503)
(34,106)
(639)
(357)
0
0
1,010
482
133
136
(24,999)
(28,802)
(7,263)
(6,007)
0
0
17,000
24,500
0
(138)
(7,702)
(6,849)
2,035
11,506
130
(2,119)
6,601
8,720
6,731
6,601

45

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2025

Index of notes

General notes

  1. Legal status

  2. Accounting policies

  3. Judgements in applying accounting policies and key sources of estimation

  4. uncertainty

Statement of comprehensive income related notes

  1. Particulars of turnover, cost of sales, operating costs, and operating surplus

  2. Income and expenditure from social housing lettings

  3. Units of housing stock

  4. Operating surplus

  5. Employees

  6. Directors’ and senior executive remuneration

  7. Board members

  8. Surplus on disposal of fixed assets

  9. Interest payable and similar charges

  10. Taxation on profit from operating activities

Statement of financial position related notes

  1. Tangible fixed assets – housing properties

  2. Other tangible fixed assets

  3. Investment properties

  4. Fixed asset investments

  5. Subsidiary undertakings / other investments

  6. Properties for sale and other stock

  7. Debtors

  8. 20a.Cash and Cash Equivalents

  9. Creditors: amounts falling due within 1 year

  10. Creditors: amounts falling due after more than 1 year

  11. Deferred capital grant

  12. Recycled capital grant

  13. Loans and borrowings

  14. Pension obligations

  15. Operating leases

  16. Capital commitments

  17. Related party transactions

  18. Provision for liabilities

  19. Net debt reconciliation

46

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2025

1 Legal status

Selwood Housing is incorporated in England and Wales under the Companies Act 2006 and is registered with the Regulator of Social Housing. Selwood Housing is a company limited by guarantee. The guarantors are the company members. Selwood Housing is registered with the Charity Commission. The address of the registered office is given on page 1 and the nature of the group’s operations and principal activities are set out in the strategic report. The Society is a public benefit entity.

2 Accounting policies

All accounting policies have been applied consistently year to year.

Basis of accounting

The financial statements of Selwood Housing have been prepared in accordance with applicable law and accounting standards in the United Kingdom, FRS 102 “the Financial Reporting Standard in the United Kingdom and the Republic of Ireland”, the Statement of Recommended Practice (SORP): Accounting by registered social housing providers (update 2018) and the Accounting Direction for Private Registered Providers of Social Housing 2022.

The Group operates in accordance with its Rules, Standing Orders, Financial Regulations and other governance documentation and complies with all relevant regulatory requirements.

The accounts are prepared under the historic cost basis except for the modification to a fair value basis for investment properties as specified in the accounting policies below.

Consolidation

The consolidated financial statements incorporate the results of Selwood Housing Society Limited and all its subsidiary undertakings for the year. Intragroup transactions and balances have been eliminated on consolidation. Subsidiaries are deconsolidated from the date control ceases.

Going concern

After making enquiries and reviewing the financial plan, the board has a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in the financial statements.

47

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Turnover

Turnover comprises rental income receivable in the year, income from shared ownership first tranche sales, sales of properties built for sale and other services included at the invoiced value (excluding value added tax (VAT)) of goods and services supplied in the year and revenue grants receivable in the year and capitalised capital grants. Rental income is recognised from the point when properties under development reach practical completion or otherwise become available for letting. Income from first tranche sales and sales of properties built for sale is recognised at the legal completion of sale. Income from the supply of goods and services is recognised when those goods or services are provided. Income is measured at the fair value of the consideration received or receivable. All turnover arises in the UK.

Grant income (non-Social Housing Grant)

The treatment of grant income depends on the terms of the funding. Where the grant is not conditional upon specific targets being met, then it is treated as income as it becomes receivable. Where grant income received is conditional upon the completion of certain targets and is returnable to the grant giver if the targets are not met, the income is credited to the Statement of Comprehensive Income as the targets are achieved. Any grants received, where the targets have not yet been achieved, are held as deferred income.

Other grants are receivable from local authorities and other organisations. Grants in respect of revenue expenditure are credited to the Statement of Comprehensive Income in the same period as the expenditure to which they relate.

Value added tax

Selwood Housing Society Ltd is registered for VAT. All amounts disclosed in the financial statements are adjusted to reflect Selwood Housing Society Ltd’s agreed method for the treatment of VAT and the financial statements include VAT to the extent that is suffered by the group and is not recoverable from HM Revenues and Customs. The balance of VAT payable or recoverable at the yearend is included as a current liability or asset.

48

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Taxation

Selwood Housing is a registered charity and as such, is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.

Qualifying Charitable Donations of Subsidiaries

The parent company only recognises gift aid income when a qualifying charitable donation is paid by a subsidiary.

Interest

Interest is capitalised on borrowings used to fund new development under construction for the period until the property is available for letting.

Other interest payable, interest receivable and related funding costs are charged to the Statement of Comprehensive Income in the year incurred.

Pensions

Defined benefit scheme

Selwood Housing Society Ltd participates as an admitted body in the Local Government Pension Scheme administered by Wiltshire Council, a defined benefit final salary scheme. The operating costs of providing retirement benefits to participating employees are recognised in the accounting periods in which the benefits are earned. The related finance costs, expected return on assets and any other changes in fair value of the assets and present value of liabilities, are recognised in the accounting period in which they arise.

Pension scheme assets are measured using market value. Pension scheme liabilities are measured using the projected unit actuarial method and are discounted at the current rate of return on a high-quality corporate bond of equivalent terms and currency to the liability. The increase in the present value of the liabilities of Selwood Housing Society Ltd’s defined benefit pension scheme expected to arise from employee service in the period is charged to operating surplus. The expected return on the scheme’s assets and the increase during the year in the present value of the scheme’s liabilities arising from the passage of time are included in operating surplus. Actuarial gains and losses are recognised in the Statement of Comprehensive Income. This pension scheme was closed to new members on 1 October 2010.

49

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

2 Accounting policies (continued)

Defined contribution scheme

Selwood Housing also participates in a defined contribution scheme where the amount charged to the Statement of Comprehensive Income represents the contributions payable to the scheme in respect of the accounting period.

Holiday pay accrual

A liability is recognised to the extent any unused holiday pay entitlement has accrued at the year end and is material; it is carried forward to future periods.

Housing properties

Housing properties are principally dwellings available for rent and are stated at cost less depreciation. Cost includes the cost of acquiring land and buildings, development costs, interest charges incurred during the development period and expenditure incurred in respect of improvements.

Development administration costs are capitalised on an apportionment of the staff time spent on this activity up to the point where the property is available for letting.

Improvements are works which result in an increase in the net rental income, such as a reduction in future maintenance costs, or result in a significant extension of the useful economic life of the property to the business. Only the direct overhead costs associated with new developments or improvements are capitalised.

Works to existing properties which replace a component that has been treated separately for depreciation purposes are capitalised and the replaced component treated as disposed of in the year of replacement.

Shared ownership properties are split proportionally between current and fixed assets based on the element relating to expected first tranche sales.

50

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

The first tranche proportion is classed as current asset and related sales proceeds included in turnover and the remaining element is classed as fixed asset and included in housing properties at cost, less any provisions needed for depreciation or impairment.

Deemed cost on transition to FRS 102

On transition to FRS 102 the Group took the option of carrying out a one-off valuation exercise of selected housing properties and using that amount as deemed cost. The Group engaged independent valuation specialist Jones Lang LaSalle (JLL) to value properties on an existing use social housing (EUV-SH) basis to determine the deemed cost as at 1 April 2014. The adoption of the deemed cost option resulted in a net increase in fixed assets as at 1 April 2014 of £144.4m revaluation gains which was credited to the revaluation reserve.

Depreciation of Housing properties

Selwood Housing depreciates its housing properties by component on a straightline basis over the estimated useful economic lives of component categories. Freehold land is not depreciated.

The useful economic lives of the components are as follows:

Structure
 100 years
Roofs 60 years
Windows / Doors 25 years
Bathrooms 25 years
Kitchens 20 years
Boilers 15 years
PV panels 20 years
Fixtures & Fittings 10 years
Lighting 20 years
Fire Alarms 15 years
Door entry systems 10 years
Electric Heating 20 years
Air Source Heat Pumps 15 years
Guttering, Soffits & Fixings 30 years
Flat Roofs 30 years
External Wall Insulation 100 years
Cavity Wall insulation 30 years

Housing properties under construction are not depreciated until practical completion. A full year’s depreciation is charged in the year the property is first available for letting.

51

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Impairment

Housing properties, which are depreciated over a period more than 50 years, are subject to impairment reviews annually. Other assets are reviewed for impairment if there is an indication that impairment may have occurred.

Where there is evidence of impairment, a detailed assessment is undertaken to compare the carrying amount of assets or cash generating units for which impairment is indicated to their recoverable amounts.

Where necessary, fixed assets are written down to the recoverable amount, being the higher of the fair value less costs to sell or value in use of an asset or cash generating unit. Any such write down is charged to operating surplus.

What constitutes a cash generating unit (CGU) when indicators of impairment require there to be an impairment review. Selwood Housing considers those properties revalued to deemed cost on adoption of FRS102 and within specific schemes as CGU’s.

Social Housing Grant

Social Housing Grant (SHG) is receivable from Homes England. Where properties are held at deemed cost under the transition to FRS102, the related SHG was initially recognised under the performance model. Subsequent grant is accounted for using the accrual model set out in FRS 102 and the Housing SORP. Grant is carried as deferred income in the statement of financial position and released to the statement of comprehensive income on a systematic basis over the useful economic life of the structure of the property.

If SHG is received in respect of revenue expenditure, it will be credited to the Statement of Comprehensive Income in the same period as the expenditure to which it relates.

SHG is subordinated to the repayment of loans by agreement with Homes England. SHG released on sale of a property may be repayable but is normally available to be recycled and is credited to a Recycled Capital Grant Fund and included in the Statement of Financial Position in creditors.

52

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Social Housing Decarbonisation Fund

SHDF has been awarded to help Housing Associations upgrade a significant amount of the social housing stock currently below Energy Performance Certificate (EPC) band C up to that standard. It will support the installation of energy performance measures in social homes.

Grant is carried as deferred income in the statement of financial position and released to the statement of comprehensive income on a systematic basis over the useful economic life of the structure of the property. If SHDF is received in respect of revenue expenditure, it will be credited to the Statement of Comprehensive Income in the same period as the expenditure to which it relates.

Other tangible fixed assets and depreciation

Other fixed assets are stated at cost less depreciation. Cost includes the purchase price of the asset and any costs incurred in bringing the asset into use. Depreciation is provided to write off the cost of tangible fixed assets, less their residual values, over their expected useful lives using the straight-line basis.

• Office premises - 50 years
• PV Panels - 20 years
• Motor Vehicles - 5 years
• IT tangible assets (where costs exceed £2k) - 5 years
• IT intangible assets (where costs exceed £2k)- 5 years
• Plant and Equipment - 5 years
• IT tangible assets (Laptops/Tablets) - 3 years
• Dynamics Housing Management System - 15 years
• Fixtures & Fittings - 10 years

Freehold land is not depreciated.

Where website and software costs can be treated as either tangible or intangible assets, they are treated as tangible fixed assets by the group.

Surpluses or deficits arising on the disposal of other fixed assets are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised as part of the surplus/deficit for the year.

53

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Stocks

Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.

Shared ownership first tranche sales completed properties for outright sale and property under construction are valued at the lower of cost and net realisable value. Cost comprises materials, direct labour, capitalised interest, and direct development overheads. Net realisable value is based on estimated sales price after allowing for all further costs of completion and disposal.

Recoverable amount of rental and other receivables

The Group estimates the recoverable value of rent and other receivables and impairs the debtor by appropriate amounts. When assessing the amount to impair it reviews the age profile of the debt and the class of debt.

Operating leases

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the term of the lease.

Schemes managed by agents

In accordance with financial reporting standards, where the risks and rewards of running the scheme accrue to the managing agent the Statement of Comprehensive Income includes only that income and expenditure which relates solely to Selwood Housing. Revenue is recognised as services are provided.

Cash and cash equivalents

Cash and cash equivalents in the Group’s Consolidated Statement of Financial Position consists of cash at bank, in hand, deposits and short-term investments with an original maturity of 95 days or less.

Short-term investments

Investments are stated at the lower of cost or market value.

54

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Investment properties

Investment properties consist of commercial properties and other properties not held for social benefit or for use in the business. These properties are held at fair value determined annually by external valuers. Any changes in fair value are recognised in the Statement of Comprehensive Income. Due to the immateriality of the movement on the 4 properties held, this has not been reflected in the statements. No depreciation is provided.

In the Company’s individual financial statements, investment properties rented to other group companies are classified as freehold office (other tangible fixed assets) and held at historical cost less depreciation and impairment.

Loans

All loans held by the group are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the transaction price (the amount of cash received including any loan premiums) less any transaction costs. FRS 102 requires that basic financial instruments are subsequently measured at amortised cost using the effective interest rate method. The group has calculated that the difference between the historical cost basis amortising costs and premiums on a straight-line basis and the application of the effective interest rate method is not material and so loan transaction costs and premiums are amortised to the income and expenditure account on a straight-line basis over the term of the loan.

Financial Instruments

Financial assets and liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all its liabilities.

Sinking funds

All sinking funds are dealt with as creditors.

55

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

2 Accounting policies (continued)

Revaluation reserve

The difference on transition to FRS 102 between the deemed cost of social housing properties and the historical cost carrying value is credited to the revaluation reserve. The difference between historical cost depreciation and depreciation charged on the deemed cost is transferred from the revaluation reserve to the income and expenditure reserve each year.

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest rate method, less any impairment losses. Any losses arising from impairment are recognised in the statement of comprehensive income in other operating expenses. The Group estimates the recoverable value of rental and other receivables and impairs the debtor by appropriate amounts.

The Group has made arrangement with individuals and households for arrears payments of rent and service charges. These arrangements are effectively loans granted at nil interest rate.

3 Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, key judgements have been made in respect of the following:

56

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

3 Judgements in applying accounting policies and key sources of estimation uncertainty (continued)

Other key sources of estimation uncertainty

Tangible fixed assets, other than investment properties are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on several factors. In re-assessing asset lives, factors such as the Group’s experience over several years of actual component lives and the Group’s ability to protect the life of a property by continuing investment are taken into account.

Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

For housing property assets, the assets are broken down into components based on management’s assessment of the properties. Individual useful economic lives are assigned to these components.

57

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

3 Judgements in applying accounting policies and key sources of estimation uncertainty (continued)

Investment properties are professionally valued bi-annually using a yield methodology. This uses market rental values capitalised at a market capitalisation rate but there is an inevitable degree of judgement involved in that each property is unique and value can only ultimately be reliably tested in the market itself. Last valuation Mar 2024.

The estimate for receivables relates to the recoverability of the balance outstanding at year end. A review is performed on the debt to consider whether it is recoverable.

58

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

4 Particulars of turnover, cost of sales, operating costs, and operating surplus – company

Surplus Operating
Cost of Operating on surplus
Turnover sales costs disposal /(deficit)
2025 2025 2025 2025 2025
£'000 £'000 £'000 £'000 £'000
Social housing lettings (note 5) 48,965 0 38,548 0 10,417
Other social housing activities
First tranche low-cost home ownership
sales 7,275 5,284 226 0 1,765
Gain on disposal of fixed assets 0 0 0 3,423 3,423
Charges for support services 33 0 4 0 29
Development costs not capitalised 0 0 721 0 (721)
7,308 5,284 951 3,423 4,496
Activities other than social housing activities
Lettings 13 0 4 0 9
Other 662 0 657 0 5
675 0 661 0 14
56,948 5,284 40,160 3,423 14,927
Surplus Operating
Cost of Operating on surplus
Turnover sales costs disposal /(deficit)
2024 2024 2024 2024 2024
£'000 £'000 £'000 £'000 £'000
Social housing lettings (note 5) 44,486 0 36,257 0 8,229
Other social housing activities
First tranche low-cost home ownership
sales 7,576 5,067 249 0 2,260
Gain on disposal of fixed assets 0 0 0 3,401 3,401
Charges for support services 31 0 4 0 27
Development costs not capitalised 0 0 783 0 (783)
7,607 5,067 1,036 3,401 4,905
Activities other than social housing activities
Lettings 13 0 3 0 10
Other 666 0 700 0 (34)
679 703 0 (24)
52,772 5,067 37,996 3,401 13,110

59

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

4 Particulars of turnover, cost of sales, operating costs, and operating surplus – group

Social housing lettings (note 5)
Other social housing activities
First tranche low-cost home ownership sales
Gain on disposal of fixed assets
Charges for support services
Development costs not capitalised
Activities other than social housing activities
Lettings
Other
Social housing lettings (note 5)
Other social housing activities
First tranche low-cost home ownership sales
Gain on disposal of fixed assets
Charges for support services
Development costs not capitalised
Activities other than social housing activities
Lettings
Other		 Turnover
Cost of
sales
Operating
costs
Surplus
on
disposal
Operating
surplus
/(deficit)
2025
2025
2025
2025
2025
£'000
£'000
£'000
£'000
£'000
48,965
0
38,548
0
10,417
7,275
5,284
226
0
1,765
0
0
0
3,423
3,423
33
0
4
0
29
0
0
721
0
(721)
7,308
5,284
951
3,423
4,496
13
0
4
0
9
636
0
669
0
(33)
649
0
673
0
(24)
56,922
5,284
40,172
3,423
14,889
Turnover
Cost of
sales
Operating
costs
Surplus
on
disposal
Operating
surplus
/(deficit)
2024
2024
2024
2024
2024
£'000
£'000
£'000
£'000
£'000
44,486
0
36,257
0
8,229
7,576
5,067
249
0
2,260
0
0
0
3,401
3,401
31
0
4
0
27
0
0
783
0
(783)
7,607
5,067
1,036
3,401
4,905
13
0
3
0
10
593
0
697
0
(104)
606
0
700
0
(94)
52,699
5,067
37,993
3,401
13,040

60

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025 5 Income and expenditure from social housing lettings – group

Income
Rents net of identifiable service charges
Service charge income
Amortised government grants
Other grants
Turnover from social housing lettings
Expenditure
Management
Service charge costs
Routine maintenance
Planned maintenance
Major repairs expenditure
Bad debts
Depreciation of housing properties:
-annual charge
-accelerated on disposal of components
Operating expenditure on social housing lettings
Operating surplus / (deficit) on social housing
lettings
Void Losses		 General
needs
Supported
& older
people's
housing
Low-cost
home
ownership
Care
Homes
Garages
Total
2025
Total
2024
£'000
£'000
£'000
£'000
£'000
£'000
£'000
34,272
9,239
2,052
304
775
46,642
42,509
647
1,030
79
0
0
1,756
1,563
564
0
0
0
0
564
413
3
0
0
0
0
3
1
35,485
10,269
2,132
304
775
48,965
44,486
4,814
1,819
306
98
96
7,133
6,307
1,740
842
0
12
10
2,604
2,430
5,607
1,729
0
261
40
7,637
6,441
5,250
1,589
0
13
28
6,880
6,450
3,679
1,136
0
10
22
4,847
4,740
89
26
0
0
0
115
94
7,029
2,038
0
0
0
9,067
8,650
206
60
0
0
0
266
1,144
28,414
9,239
306
394
196
38,548
36,256
7,071
1,030
1,826
(90)
579
10,417
8,230
144
98
103
0
36
381
463

61

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025 5 Income and expenditure from social housing lettings – company

Income
Rents net of identifiable service charges
Service charge income
Amortised government grants
Other grants
Turnover from social housing lettings
Expenditure
Management
Service charge costs
Routine maintenance
Planned maintenance
Major repairs expenditure
Bad debts
Depreciation of housing properties:
-annual charge
-accelerated on disposal of components
Operating expenditure on social housing lettings
Operating surplus / (deficit) on social housing
lettings
Void Losses		 General
needs
Supported
& older
people's
housing
Low-cost
home
ownership
Care
Homes
Garages
Total
2025
Total
2024
£'000
£'000
£'000
£'000
£'000
£'000
£'000
34,272
9,239
2,052
304
775
46,642
42,509
647
1,030
79
0
0
1,756
1,563
564
0
0
0
0
564
413
3
0
0
0
0
3
1
35,485
10,270
2,132
304
775
48,965
44,486
4,814
1,819
306
98
96
7,133
6,307
1,740
842
0
12
10
2,604
2,430
5,607
1,729
0
261
40
7,637
6,442
5,250
1,589
0
13
28
6,880
6,450
3,679
1,136
0
10
22
4,847
4,740
89
26
0
0
0
115
94
0
0
0
0
0
0
0
7,029
2,038
0
0
0
9,067
8,650
206
60
0
0
0
266
1,144
28,414
9,239
306
394
196
38,548
36,257
7,071
1,031
1,826
(90)
579
10,417
8,229
144
98
103
36
381
463

62

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

6 Units of housing stock

At the end of the year accommodation in management was as follows:

General needs housing:
- social
- affordable
Low-cost home ownership
Supported housing
Housing for older people
Sheltered units for older people / supported
living
Total social housing units
Residential care home bed spaces
Total owned and managed
Leaseholders of sold flats
Leaseholders units for supported living
Market rent
Total owned and managed accommodation
Units under construction
Total owned and managed accommodation as at Apr 24
Newly built rental accommodation, built by or for Selwood
Housing.
Sales to the open market
Right to Buy Disposals
Right to Acquire Disposals
Rental property transferred to Leasehold
Fully Stair cased LCHO
Total owned and managed accommodation as at Mar 25		 Group &
Company
Group &
Company
2025
2024
Number
Number
4,170
4,187
1,007
944
483
433
74
76
701
701
714
713
7,149
7,054
46
46
7,195
7,100
90
91
4
4
2
2
7,291
7,197
310
273
Group &
Company
Number
7,197
125
(27)
(1)
0
0
(3)
7,291

63

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

6 Units of housing stock (continued)

Selwood Housing owns 74 supported housing units (2024:76) and tenancy sustainment support was provided for 9 of these units by Selwood Housing in 2025 (2024:11). The rest are managed by bodies that contract with adult social care and carry the financial risk relating to these supported housing units. Other organisations manage 46 care home units on our behalf.

Selwood Housing also owns 1,123 garages, 1 shop unit used by Selwood Housing as a resource centre and 1 doctors’ surgery.

7 Operating surplus

Group Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
This is arrived at after charging / (crediting):
Depreciation of housing properties:
-annual charge 9,067 8,649 9,067 8,649
-accelerated depreciation on replaced components 265 139 265 139
Depreciation of other tangible fixed assets 282 273 257 247
Impairment of 2 blocks of flats 0 1,006 0 1,006
Impairment of Office property 0 0 0 0
Auditor's remuneration (excluding VAT):
-fees payable to the group's auditor for the audit
of the group's annual accounts 49 32 46 27
- fees for other non-audit services 13 2 13 2

8 Employees

Staff costs (including Executive Team) consist of:
Wages and salaries
Social security costs
Cost of defined benefit scheme (see note 26)
Cost of defined contribution scheme		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
12,137
11,067
12,137
11,067
1,178
1,045
1,178
1,045
188
217
188
217
867
775
867
775
14,370
13,104
14,370
13,104

64

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

8 Employees continued

The average number of employees (including the executive team) expressed as full-time equivalents (calculated based on a standard working week of 35 hours during the year) was as follows:

Group Group Company Company
2025 2024 2025 2024
Administration 66 62 66 62
Development 11 9 11 9
Maintenance 100 91 100 91
Housing, Support and care 151 149 151 149
328 311 328 311

9 Directors’ and senior executive remuneration

The directors and senior executives are defined as the members of the board of directors, the group chief executive and the executive team disclosed on page 1.

Group and company

Executive directors' emoluments
Amounts paid to non-executive directors
Contributions to money purchase pension schemes
Contributions to defined benefits pension scheme		 2025
2024
£'000
£'000
667
636
56
49
12
11
83
80
818
776

65

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

9 Directors’ and senior executive remuneration (continued)

The remuneration paid to staff (including the executive team) earning over £60,000 upwards (excluding employer pension contributions):

2025
2024
No.
No.
£60,000 - £69,999 16
9
£70,000 - £79,999 10
10
£80,000 - £89,999 1
0
£90,000 - £99,999 0
1
£100,000 - £109,999 2
1
£110,000 - £119,999 1
1
120,000 - 129,999 0
1
130,000 - 139,999 1
0
140,000 - 149,999 0
0
150,000 - 159,999 0
0
160,000 - 169,999 0
0
170,000 - 179,999 0
0
180,000 - 189,999 0
0
190,000 - 199,999 0
0
200,000 - 209,999 0
1
210,000 - 219,999 1
0
32
24

Benefits have accrued to 3 executive officers under the Wiltshire pension fund defined benefit scheme (2024 – 3) and 1 director accrued benefits under the group’s defined contribution pension scheme during the year (2024 – 1).

The group chief executive received remuneration of £155,134 salary excluding pension contributions plus £55,486 in lieu of pension contributions. This is 6.02 times the median salary of all members of staff (2024: 6.14 times).

66

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

10 Board members

The Chair of the board receives a salary of £11,865 (2024: £10,500) per annum, the committee chairs each receive £1,978 per annum (2024: £1,750), in addition to their basic board member payment. The standard other group board member payment is £4,802 (2024: £4,250). Emoluments paid to board members in 2025 were 0.10% (2024: 0.09%) of Selwood Housing’s annual turnover.

Board member Remuneration
& Expenses
£		 Current
Member of
Group Asset
&
Development
Committee		 Current
Member
of Group
Audit and
Finance
committee		 Group
Board
Sheila Lewis*to 31/12/24 10,550 x x
Koo Chai Young Li Mow Ching *
chair from 01/01/25		 9,986 x x
Chris Butters 7,110 x x
Stella Shepherd** 4,837 x x
Lisa Nicholls to 01/10/24 2,798 x x
Richard Yates 4,852 x x
Hannah Jones 4,810 x x
Samuel Whatleyfrom 01/12/24 1,741 x x
Maureen Robinson from 02/12/24 1,747 x x
Nicola Setchell to 01/05/24 418 x x
PhilipWhitehead 4,802 x x
David Hobdeyfrom 02/12/24 2,260 x x
Total 55,911
* Chair
** Vice Chair

67

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

11 Surplus on disposal of fixed assets

Group and Company
Disposal proceeds
Costs of disposals
Selling costs
Grant recycled
Surplus on disposal of other
tangible fixed assets		 Right to Buy
and Right to
Acquire
Other
housing
properties
Staircasing
Total
Total
2025
2025
2025
2025
2024
£'000
£'000
£'000
£'000
£'000
171
4,472
357
5,000
5,043
(49)
(1,321)
(195)
(1,565)
(1,637)
(7)
(2)
(3)
(12)
(5)
0
0
0
0
0
115
3,149
159
3,423
3,401
0
0
0
0
0
115
3,149
159
3,423
3,401

12 Interest payable and similar charges

Group and company
Bank loans and overdrafts
All other loans (excluding loans from group
entities)
Interest capitalised on construction of housing
properties		 2025
2024
£'000
£'000
5,611
4,726
2,176
2,178
(524)
(897)
7,263
6,007

13 Taxation on profit from ordinary activities

Current tax
UK corporation tax on profits of the year
Effect of changes in rates
Adjustments in respect of previous periods
Origination and reversal of timing differences
Taxation on profit on ordinary activities		 Group
Group
Company Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
0
0
0
0
0
(1)
0
0
0
2
0
0
3
2
0
0
3
3
0
0

68

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

13 Taxation on profit from ordinary activities (continued)

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The differences are explained below.

Profit on ordinary activities before tax
Tax on profit on ordinary activities at the
standard rate of corporation tax in the UK of
25%
Effects of:
Charitable income
Gift Aid Payment to parent
Expenses not deductible
Tax rate changes
Current tax charge for year		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
7,773
7,166
7,794
7,217
(1,943)
(1,792)
(1,949)
(1,804)
1,924
1,770
1,949
1,804
22
24
0
0
0
0
0
0
0
0
0
0
3
3
0
0

69

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

14 Tangible fixed assets – housing properties

All housing properties were freehold at 31 March 2025 (2024: all freehold).

Group
Cost
1st April 2024
Construction Costs
Replaced components - Additions
Completed Schemes
Disposals - RTB, RTA & market
sales
Disposals - replaced components
Impairment of 2 blocks of flats
Disposals - staircasing
Transfers
At 31 March 2025
Depreciation
1st April 2024
Charge for the year
Eliminated on disposals
Replaced components - Disposals
Impairment of 2 blocks of flats
Disposals - staircasing
At 31 March 2025
Net Book Value at 31 March 2025
Net Book Value at 31 March 2024		 General
needs
completed
General
needs under
construction
Shared
ownership
completed
Shared
ownership
under
construction
Total
£'000
£'000
£'000
£'000
£'000
511,158
6,739
42,011
2,005
561,913
0
13,539
0
5,430
18,969
11,553
(19)
0
0
11,534
11,963
(11,963)
6,202
(6,202)
0
(1,597)
0
0
0
(1,597)
(2,254)
0
0
0
(2,254)
0
0
0
0
0
0
0
(203)
0
(203)
0
0
(23)
0
(23)
530,823
8,296
47,987
1,233
588,339
(66,135)
0
(1,175)
0
(67,310)
(8,728)
0
(339)
0
(9,067)
267
0
0
0
267
1,989
0
0
0
1,989
0
0
0
0
0
0
0
8
0
8
(72,607)
0
(1,506)
0
(74,113)
458,216
8,296
46,481
1,233
514,226
445,023
6,739
40,836
2,005
494,603

70

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

14 Tangible fixed assets – housing properties (continued)

Company
Cost
1st April 2024
Construction Costs
Replaced components - Additions
Completed Schemes
Disposals - RTB, RTA & market sales
Disposals - replaced components
Impairment of 2 blocks of flats
Disposals - staircasing
Transfers
At 31 March 2025
Depreciation
1st April 2024
Charge for the year
Eliminated on disposals
Replaced components - Disposals
Impairment of 2 blocks of flats
Disposals - staircasing
At 31 March 2025
Net Book Value at 31 March 2025
Net Book Value at 31 March 2024		 General
needs
completed
General
needs under
construction
Shared
ownership
completed
Shared
ownership
under
construction
Total
£'000
£'000
£'000
£'000
£'000
511,158
6,773
42,011
2,023
561,965
0
13,541
0
5,429
18,970
11,553
(19)
0
0
11,534
11,963
(11,963)
6,202
(6,202)
0
(1,597)
0
0
0
(1,597)
(2,254)
0
0
0
(2,254)
0
0
0
0
0
0
0
(203)
0
(203)
0
0
(23)
0
(23)
530,823
8,332
47,987
1,250
588,392
(66,135)
0
(1,176)
0
(67,311)
(8,728)
0
(339)
0
(9,067)
267
0
0
0
267
1,989
0
0
0
1,989
0
0
0
0
0
0
0
8
0
8
(72,607)
0
(1,507)
0
(74,114)
458,216
8,332
46,480
1,250
514,278
445,023
6,773
40,835
2,023
494,654

71

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

14 Tangible fixed assets – housing properties (continued)

Interest capitalised in the year
Rate used for capitalisation
Total social housing grant received or receivable
to date
as follows
Capital grant - Housing properties
Recycled Capital Grant Fund
Revenue grant - I&E
Revenue grant - reserves		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
(524)
(897)
(524)
(897)
4%
3%
4%
3%
Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
35,119
34,257
35,119
34,257
134
129
134
129
564
413
564
413
5,619
5,055
5,619
5,055
41,437
39,854
41,437
39,854

Properties held for security

Selwood Housing Society Ltd had property with an existing use value of £290 million pledged as security at 31 March 2025 (£270 million – 2024).

72

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

15 Other tangible fixed assets – group

Group
Cost
At 1 April 2024
Additions
Disposals
At 31 March 2025
Accumulated Depreciation
At 1 April 2024
Charged in year
Disposals
At 31 March 2025
Net book value at 31 March
2025
Net book value at 31 March
2024		 Freehold
Fixtures
Plant &
Motor
IT
Laptops
Dynamics -
Total
Office
&
Fittings
&
Equipment
Vehicles
& Tablets
Housing Mgmt
Sys
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
3,556
52
550
13
2,325
130
711
7,337
0
0
0
0
185
170
284
639
0
0
(5)
0
0
0
0
(5)
3,556
52
545
13
2,510
300
995
7,971
(1,363)
(28)
(251)
(13)
(2,014)
(13)
0
(3,682)
(56)
(5)
(25)
0
(110)
(80)
(6)
(282)
0
0
0
0
0
0
0
0
(1,419)
(33)
(276)
(13)
(2,124)
(93)
(6)
(3,964)
2,137
19
269
0
386
207
989
4,007
2,193
25
299
0
311
117
711
3,655

Freehold office includes freehold land at cost of £360,000 (2024: £360,000) which is not depreciated.

73

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

15 Other tangible fixed assets – company

Company
Cost
At 1 April 2024
Additions
Disposals
At 31 March 2025
Accumulated Depreciation
At 1 April 2024
Charged in year
Disposals
At 31 March 2025
Net book value at 31 March
2025
Net book value at 31 March
2024		 Freehold
Fixtures
Plant
Motor
IT
Laptops
Dynamics -
Total
Office
& Fittings
&
Equipment
Vehicles
& Tablets
Housing Mgmt
Sys
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
3,556
52
6
13
2,325
130
711
6,793
0
0
0
0
185
170
284
639
0
0
0
0
0
0
0
0
3,556
52
6
13
2,510
300
995
7,432
(1,363)
(28)
(6)
(13)
(2,014)
(13)
0
(3,437)
(56)
(5)
0
0
(110)
(80)
(6)
(257)
0
0
0
0
0
0
0
0
(1,419)
(33)
(6)
(13)
(2,124)
(93)
(6)
(3,694)
2,137
19
0
0
386
207
989
3,738
2,193
25
0
0
1,022
117
0
3,356

Freehold office includes freehold land at cost of £360,000 (2024: £360,000) which is not depreciated.

16 Investment properties

Group and Company
At 1 April 2024
Revaluations
At 31 March 2025		 Market
rent
Commercial
Total
£'000
£'000
£'000
216
124
340
0
0
0
216
124
340

74

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

16 Investment properties continued

The group’s investment properties were last valued on 31 March 2024 at fair value, determined by an independent, professionally qualified valuer. The valuations were undertaken in accordance with the Royal Institution of Chartered Surveyors’ Appraisal and Valuation Manual. Details on the assumptions made and the key sources of estimation uncertainty are given in note 3.

17 Fixed asset investments

Cost or valuation
At 1 April 2024
Additions
At 31 March 2025		 Group
Company
£'000
£'000
125
3,225
0
0
125
3,225

75

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

18 Subsidiary undertakings

The principal undertakings in which the company has an interest are as follows:

Proportion of
Country of voting rights
Name incorporation / ordinary share Nature of business Nature of entity Number of shares
or
registration capital held
Private company 100,000 ordinary £1
Silcoa Ltd England 100% Dormant limited by shares shares
Cottsbury Homes Sale of properties at Private company 500,000 ordinary £1
Ltd England 100% market cost limited by shares shares
Selwood DevCo Generation and supply Private company 2,500,000 ordinary
Ltd England 100% of electricity limited by shares £1 shares

All subsidiary undertakings have the same registered office as the company, shown on page 1

76

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

19 Properties for sale & other stock

Group
Completed properties
Other
Properties under construction
Company
Completed properties
Other
Properties under construction		 First tranche
shared
ownership
Other
properties
Stock
Total
Total
2025
2025
2025
2024
£'000
£'000
£'000
£'000
1,834
0
1,834
2,921
0
204
204
163
833
1,986
2,819
3,019
2,667
2,190
4,857
6,103
First tranche
shared
ownership
Other
properties
Stock
Total
Total
2025
2025
2025
2024
£'000
£'000
£'000
£'000
1,834
0
1,834
2,921
0
204
204
163
833
0
833
1,348
2,667
204
2,871
4,432

Properties developed for sale include capitalised interest of £51k (2024 - £71k).

77

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

20 Debtors

Due within one year
Arrears of rent and service charges
Less: Provision for doubtful debts
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
620
638
620
638
(299)
(366)
(299)
(366)
321
272
321
272
0
0
0
0
2,244
2,683
2,240
2,381
1,638
1,641
1,631
1,635
4,203
4,596
4,192
4,288

The other debtors figure includes £485k (2024: £541k) in respect of 22 days’ (2024:21 days) housing benefit due from Wiltshire Council.

20a Cash and cash equivalents

Cash
Deposit accounts		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
5,426
5,274
4,866
4,938
1,305
1,327
631
656
6,731
6,601
5,497
5,594

78

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

21 Creditors: Amounts falling due within one year

Trade creditors
Rent and service charges received in advance
Amounts owed to group undertakings
Taxation and social security
Other creditors
Accruals and deferred income
Loans due within 1 year
Recycled Capital Grant
Deferred Capital grant		 Group
Group
Company Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
1,677
1,147
1,448
1,147
1,290
702
1,290
702
0
0
7
9
298
288
298
288
613
651
613
652
7,099
6,825
7,089
6,819
8,791
7,702
8,791
7,702
0
9
0
9
482
406
482
406
20,250
17,730
20,018
17,734

22 Creditors: Amounts falling due after more than one year

Group and company

Group and company
Loans and borrowings (note 25)
Deferred capital grant (note 23)
Disposal proceeds fund (note 24)
Recycled capital grant (note 24)
Sinking fund balances		 2025
2024
£'000
£'000
185,180
176,944
34,638
34,257
0
0
134
120
15
110
219,967
211,431

79

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

23 Deferred capital grant

Group and company
At 1 April
Grants received in the year
SHDF grants received in year
Grants recycled from the recycled capital grant fund
Released to income in the year
Reversal of release to income < 1 year
To be released to income < 1 year (note 21)
At 31 March		 2025
2024
£'000
£'000
34,257
34,518
300
482
710
0
9
76
(562)
(413)
406
0
0
(406)
35,120
34,257

24 Recycled capital grant

At 1 April
Additions:
Grants Recycled
Interest
Withdrawals:
New build
At 31 March
Amounts 3 years or older where repayment may
be required		 Group
Group
Company Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
129
205
129
205
4
97
4
97
10
3
10
3
(9)
(176)
(9)
(176)
134
129
134
129
0
0
0
0

80

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

25 Loans and borrowings

Loans are secured by specific charges on the housing properties of the group and are secured on the assets of Selwood Housing, including fixed charges on individual properties.

In one year or less, or on demand
In more than one year but not more than two years
In more than two years but not more than five years
In more than five years
Total debt		 Bank
Loans
Total
Total
2025
2025
2024
£'000
£'000
£'000
8,791
8,791
7,702
10,240
10,240
8,791
86,710
86,710
66,336
88,230
88,230
101,817
193,971
193,971
184,646

New funding of £75m was approved in FY24/25 with AHGS.

The loans bear interest at fixed rates ranging from 1.8% to 5.08% or at variable rates calculated at a margin above the Sterling Overnight Index Average. The current loan outstanding is made up of £120m fixed and £73.5m variable, against agreed facilities of £219m (2024 - £226.7m). At 31 March 2025 the group had undrawn loan facilities of £20m (2023 - £20m) with Nationwide and £5.5m (2023 £22m) with Lloyds.

26 Pension obligations

Group and Company

The Wiltshire Pension Fund (“WPF”) is a multi-employer scheme with more than one participating employer, which is administered by Wiltshire Council under the regulations governing the Local Government Pension Scheme (LGPS), a defined benefit scheme. The assets of the WPF are held separately from those of Selwood Housing in independently administered funds. The actuaries have used the projected unit credit method of valuation in accordance with FRS 17.

The employers’ contributions to the WPF by Selwood Housing for the year ended 31 March 2025 were £569,034 (2024: £575,165) at a contribution rate of 25.7% of pensionable salaries including an annual contribution of £343,000 to fund the deficit, set until the next funding valuation.

81

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

26 Pensions obligations (continued)

Financial assumptions

The main financial assumptions used by the actuary were:

31 March 2025 31 March 2024
% per annum % per annum
Discount rate 5.75 4.85
Future salary increases 3.40 3.25
Future pension increases 2.90 2.75

Mortality assumptions

Life expectancy is based on the Fund’s VitaCurves with improvements in line with the CMI 2022 model, with a 15% weighting of 2023 data, a 15% weighting of 2022 data, a 0% weighting of 2021 (and 2020) data, standard smoothing (Sk7), initial adjustment of 0% and a long-term rate of improvement of 1.25% per annum for both males and females. Based on these assumptions, the average future life expectancies at age 65 are summarised below:

2025 2024
No. of years No. of years
Current pensioners:
Males 21 21.3
Females 24 24.3
Future pensioners: *
Males 21.7 23.8
Females 25.2 25.8

Commutation

A commutation allowance is included for future retirements to elect to take 50% of the maximum additional tax-free cash up to HMRC limits.

82

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

26 Pensions obligations (continued)

Amounts recognised in the statement of financial position

Present value of funded obligations relating
to Selwood Housing
Fair value of plan assets relating to
Selwood Housing
Unrecognised Asset
Net Deficit		 2025
2024
£'000
£'000
(20,450)
(23,313)
28,770
28,431
(8,320)
(5,118)
0
0

Analysis of the amount (credited)/charged to the statement of comprehensive income:

Current service cost
Expected return on pension scheme assets
Interest on pension scheme liabilities
Total operating charge		 2025
2024
£'000
£'000
188
217
(1,367)
(1,247)
1,105
1,097
(74)
67

Of the above amount, £14,000 (2024: £9,000) was credited to other finance charges. £348,000 (2024: £359,000) was credited to operating surplus. Net interest income of £262k is adjusted by £248k as part of asset ceiling cap reducing net interest to £14k.

Changes in fair value of employer assets

Opening fair value of employer assets
Contributions by the Employer
Actuarial loss / gain
Administration Expenses
Benefits paid
Contributions by members
Interest
Closing fair value of employer assets		 2025
2024
£'000
£'000
28,431
26,289
570
576
(511)
985
(34)
0
(1,125)
(740)
72
74
1,367
1,247
28,770
28,431

83

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

26 Pensions obligations (continued)

Changes in present value of defined benefit obligation

Opening defined benefit obligation
Current service cost
Interest cost
Actuarial losses
Estimated benefits paid
Contributions by members
Closing defined benefit obligation		 2025
2024
£'000
£'000
23,313
23,324
188
217
1,105
1,097
(3,103)
(659)
(1,125)
(740)
72
74
20,450
23,313

Major categories of plan assets as a percentage of total plan assets:

2025 2024
Equities 40% 56%
Bonds 36% 29%
Property 23% 14%
Cash 1% 1%

Fair value of employer assets

Equities
Bonds
Property
Cash		 2025
2024
£'000
£'000
11,570
15,921
10,235
8,245
6,529
3,980
436
284
28,770
28,430

84

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

26 Pensions obligations (continued)

Amounts for the current and previous four years are as follows:

2025 2024 2023 2022 2021
£'000 £'000 £'000 £'000 £'000
Present value of defined benefit obligation (20,450) (23,313) (23,324) (32,863) (34,807)
Fair value of scheme assets 28,770 28,431 26,289 28,122 26,017
Surplus/(Deficit) on scheme 8,320 5,118 2,965 (4,741) (8,790)
Experience adjustments on plan liabilities 146 (776) (1,743) (68) 298
Experience adjustments on plan assets (511) 985 (2,457) 1,606 3,269
Cumulative actuarial gains/losses 9,328 6,736 5,092 (2,609) (6,788)
Projected pension expense for the year to 31 March 2026 Projected pension expense for the year to 31 March 2026
£'000
Projected Current Service Cost 147
Net Interest on the defined liability / asset (17)
Administration Expenses 34
Total 164

The gain is adjusted to reflect asset ceiling adjustment of £2,954k. A loss of £362k is charged to SoCI.

The estimated employer contributions for the year to 31 March 2026 are approximately £569,000.

Defined Contribution Scheme

A defined contribution pension scheme is operated by the group on behalf of some employees. The assets of the scheme are held separately from those of the group and the company in an independently administered fund. All existing and new colleagues are eligible to join. The costs associated with providing this scheme are outlined in note 8.

85

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

27 Operating leases

At 31 March 2025, the group and company had future minimum lease payments under non-cancellable operating leases as set out below:

Amounts payable as Lessee Group Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Not later than 1 year 634 545 634 545
later than 1 year and no later than 5 years 2977 952 2977 952
Later than 5 years 0 0 0 0
Total 3,611 1,497 3611 1497
Amounts receivable as Lessor Group Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Not later than 1 year 1 1 1 1
later than 1 year and no later than 5 years 0 0 0 0
Later than 5 years 0 0 0 0
Total 1 1 1 1

28 Capital commitments

Commitments contracted but not provided
for in the accounts
Commitments approved by the Board but
not contracted for		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000

90,438
81,671
90,438
81,671
109,152
95,886
109,152
95,886
199,590
177,557
199,590
177,557

86

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

28 Capital commitments (continued)

The above commitments will be financed primarily through borrowings, new funding, social housing grant, property sales and internal cash balances.

29 Related party transactions

The directors Stella Shepherd, Richard Yates and Hannah Jones are tenants of Selwood Housing. Their tenancy agreements are under normal commercial terms, and they are not able to use their position to their advantage.

The director Philip Whitehead is also a councillor of Wiltshire Council. Any transactions made with Wiltshire Council are made at arm’s length, on normal commercial terms and the councillors cannot use their position on the board to their advantage.

Except for the disclosures below, Selwood Housing Group has taken advantage of the exemption allowed under FRS 102 not to disclose related party transactions within the group. All intra-group transactions are with subsidiaries that are wholly owned. These have been eliminated on consolidation in the group’s financial statements.

Transactions with non-regulated entities

The association provides management services and other services to some of its subsidiaries. Selwood Housing also receives charges from its subsidiaries. The quantum and basis of those charges is set out below.

Transactions with non-regulated entities
Payable to Selwood Housing by
Subsidiaries:
Silcoa Ltd
Selwood DevCo Ltd
Cottsbury Homes Ltd
Payable by Selwood Housing to
Subsidiaries:
Silcoa Ltd
Selwood DevCo Ltd		 Management
Charges
Gift Aid
2025
2024
2025
2024
£'000
£'000
£'000
£'000
0
0
2
1
0
0
83
134
0
0
11
1
0
0
96
136
Other Charges
2025
2024
£'000
£'000
0
0
40
59
40
59

87

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2025

Other intra-group charges

No other intra-group charges are payable to the society from subsidiaries. Charges from subsidiaries to the society are for goods and services provided.

30 Provision for liabilities – Deferred Tax

At 31 March 2024
Charge / (Credit)
Origination and reversal of timing
differences
At 31 March 2025
1 Net debt reconciliation
01 April 2024
£'000
Group
Cash and cash
equivalents
6,601
Loans and borrowings
(184,647)
(178,046)
Company
Cash and cash
equivalents
5,594
Loans and borrowings
(184,646)
(179,052)		 At 31 March 2024
Charge / (Credit)
Origination and reversal of timing
differences
At 31 March 2025
1 Net debt reconciliation
01 April 2024
£'000
Group
Cash and cash
equivalents
6,601
Loans and borrowings
(184,647)
(178,046)
Company
Cash and cash
equivalents
5,594
Loans and borrowings
(184,646)
(179,052)		 Group
Group
Company
Company
2025
2024
2025
2024
£'000
£'000
£'000
£'000
4
7
0
0
(3)
(3)
0
0
0
0
0
0
1
4
0
0

Cash flows
Non -cash
changes
31 March
2025
£'000
£'000
£'000

130
0
6,731
(9,298)
(27)
(193,972)
(178,046) (9,168)
(27)
(187,241)
5,594
(184,646)
(97)
0
5,497
(9,298)
(27)
(193,971)
(179,052) (9,395)
(27)
(188,474)

31 Net debt reconciliation

88

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Management Letter
Selwood Housing Society Limited
Year ending 31 March 2025
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AUDIT PLAN OVERVIEW

Year ending 31 March 2025

Contents

Introduction and Scope of the Audit Work 1
Key Audit Areas 2-6
Overview of Financial Statements 7-8
Independence 9-10
Management Representation Letter and Audit Opinion 11
Materiality and Audit Adjustments 12
Accounting and Internal Control System 13

SELWOOD MANAGEMENT LETTER 2024

Introduction

Our audit of the financial statements of Selwood Housing Society Limited (the parent) and its 100% owned subsidiaries (Silcoa Limited, Cottsbury Homes Limited and Selwood DevCo Limited) is substantally complete. These companies comprise “the Group” for the purpose of this report.

The purpose of this letter is to bring to your attention the findings from our audit.

In order to comply with the provisions of the International Standard on Auditing (ISA) 260 – ‘Communication of Audit Matters with those Charged with Governance’ we report to management on the findings of our audit, with particular reference to:

We also take this opportunity to comment on the Group’s performance for the year and to confirm our professional integrity, objectivity and independence.

We see effective communication with the Board and Group Audit and Finance Committee as being a key part of our audit, and it is important that there is effective two way communication. We welcome any feedback or questions regarding the conduct of the audit process.

This report is not intended to cover every matter which came to our attention during the audit. We do not accept any responsibility for any reliance placed on it by third parties. Our procedures are designed to support our audit opinion and cannot be relied upon to identify any weakness in systems or controls which may exist.

We would like to take this opportunity to formally record our appreciation for the assistance and cooperation provided to us by the Finance Team who assisted us during the course of our audit.

Beever and Struthers

SELWOOD MANAGEMENT LETTER 2024 1

Key Audit Areas

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Audit issue per audit plan overview Audit procedures and results
Loan Covenants and Treasury Management – At the interim stage of the audit we:
Elevated audit risk
 ensured we had all current funding agreements and
The current economic and political climate is challenging, covenant definitions;
with the prospect of costs continuing to rise in excess of  accessed the controls around intra group loans and
increases in rental income. charges;
 reviewed the current Treasury Management Policy
We will review covenant reporting by management and Strategy;
throughout the audit process. At our audit planning  reviewed short and long-term cash flow monitoring
meeting Management confirmed there were no reported procedures;
issues on compliance with loan covenants. Management  reviewed perfromance verses budget for the year;
also confirmed they are in the final stages of securing up and
to £75m from AHGS, which ensures there are sufficient  assessed the monitoring arrangements in place for
funds to finance development activity. loan covenant compliance.
At the final audit we:
 agreed loans to accounting records and to external
loan confirmations;
 reviewed the Group’s 2025/26 budget and the
underlying assumptions;
 reviewed and challenged longer-term budgets,
business plans and cash flow forecasts in line with
the requirements of ISA 570;
 tested management’s calculations of loan covenant
compliance; and
 reviewed disclosues in the Strategic Report including
the Report of th Board, in relation to the Group’s
going concern assessment.
During the clearance meeting on 15 [th] May 2025
management confirmed they have secured the £75m
funding from AHGS at a rate of 4.7% and have drawn
down £50m. This has not had an impact on the audit for
year end 31 March 2025 but will be reviewed during our
audit for year ending 31 March 2026.
We found no issues of concern in this area.
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Property Sales – Elevated audit risk

At 31 March 2025 property sales proceeds were £4.6m from the sale of 27 properties. 26 of these were open market sales generating proceeds of £4.43m with a surplus of £3.1m. There was 1 RTB sale in year generating sales proceeds of £171k with a surplus of £122k. Shared ownership sales generated proceeds of £7.3m with a surplus of £1.8m.

At the final audit we:

SELWOOD MANAGEMENT LETTER 2024

Key Audit Areas

Audit issue per audit plan overview Audit procedures and results
selling price less costs to complete and sell. This
included an assessment of the profitability on the
current schemes.
We found no issues of concern in this area.

SELWOOD MANAGEMENT LETTER 2024 2

Key Audit Areas

Audit issue per audit plan overview

Audit procedures and results

Housing Properties – Elevated audit risk

At the interim stage of the audit we:

The audit risks for housing properties include:

At the final audit we:

We found no issues of concern in this area.

SELWOOD MANAGEMENT LETTER 2024 3

Key Audit Areas

Audit issue per audit plan overview

Audit procedures and results

Defined Benefit Pension Scheme – Elevated audit risk

At the interim stage if the audit we:

The Group participates in The Wiltshire Pension Fund, a local government defined benefit pension scheme (LGPS). The scheme actuary will value the pension liabilities for Section 28 of FRS 102 purposes and this will be included in the financial statements at 31 March 2025.

At the final audit visit we:

At the 31 March 2023 the pension scheme valuation showed the scheme had moved into an asset position of £2.965m. In order to reflect this asset, Selwood must be able to demonstrate that the asset is recoverable – for example through reduced future contributions or refunds from the Scheme. We agreed we would not reflect the asset and so wrote down to zero in the financial statements. This approach was consistently followed at 31 March 2024 when the net asset position was £5.1m.

At the 31 March 2025 the pension scheme valuation showed the scheme had now moved into an asset position of £8.3m. Whilst we have not seen an asset ceiling report, we have not seen evidence that this asset is recoverable, and it has therefore been capped at £nil. We are comfortable with this treatment, and it is in line with sector practice.

Our work in this area is ongoing as we are awaiting a response to our letters from Barnett Waddingham and Wiltshire Pension Fund. We are comfortable with the numbers but have found two disclosures which could make clearer the impact of the asset ceiling adjustment.

SELWOOD MANAGEMENT LETTER 2024 4

Key Audit Areas

Audit issue per audit plan overview

Audit procedures and results

Assessment of Fraud Risk – Significant audit risk

ISA 240 “The Auditor’s responsibility to consider fraud” requires us to consider the risk of fraud and the impact that this has on our audit approach. In addition, ISA 700 “Forming an Opinion and Reporting on Financial Statements”, means auditors are required to explain in the auditor’s report to what extent the audit was considered capable of detecting irregularities, including fraud. There is a presumed significant risk of fraud in two areas:

Our audit is designed to provide reasonable assurance that the accounts are free from material misstatement whether caused by fraud or error. We reviewed revenue recognition and management control override in detail.

As part of the audit planning we:

Revenue Recognition

Material misstatements due to fraudulent reporting often result from an overstatement of revenues, for example through premature revenue recognition or recording fictitious revenues. The auditor therefore presumes that there are risks of fraud in revenue recognition and considers which types of revenue may give rise to fraud risks.

During the audit fieldwork:

For the Group the main income stream is rental income. The processing of rent charges is highly automated and rent changes are restricted. We therefore have initially assessed the risk of fraud in the recognition of rental income as low and expect to rebut the assumption that this area is a significant risk.

Management Override

Under ISA 240 there is a presumed risk of management override of the system of internal controls. Material misstatements can arise from management overriding the controls which are in place or by manipulating the results to achieve targets and the expectations of the stakeholders.

We have no issues to report from testing performed thus far. We have requested further documentation on some sample items but do not anticipate any issues at this stage.

SELWOOD MANAGEMENT LETTER 2024 5

Key Audit Areas

Audit issue per audit plan overview

Key Judgements and Estimates – links to other audit risks

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the year-end and the amounts reported for revenues and expenses during the year. Given its nature, this area is a key audit focus.

ISA 540 “Auditing Accounting Estimates and Related Disclosures” also places additional emphasis on scepticism in the audit process, with its importance increasing when accounting estimates are subject to a greater degree of estimation uncertainty or are affected to a greater degree by complexity, subjectivity, or other inherent risk factors.

Audit procedures and results

Our testing is designed to assess whether the key judgements and estimates have been made appropriately in line with our knowledge of the Group and the sector and are disclosed satisfactorily in the financial statements.

Details of the audit testing is included across a number of the key audit areas in this section, and included:

There are no other issues to note in this area.

SELWOOD MANAGEMENT LETTER 2024 6

Overview of Financial Statements

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

----- Start of picture text -----
2025 2024
£’000 £’000
Turnover 56,922 52,699 Turnover has risen £4.2m, income from social
housing lettings has risen by £4.5m due to the
rent increase of 7.7% applied at the start of the
year and an increase in unit numbers. Income
from the sale of first tranche shared ownership
has decreased by £0.3m.
Cost of sales (5,284) (5,067) Cost of sales have increased by £0.2m due to the
decrease in LCHO margin driven by a mix of
properties sold and development location. Same
number of LCHO sales in each year.
Operating costs (40,172) (37,993) Operating costs has increased by £2.2m,
maintenance costs increased by £2m, due
inflationary price increases, annual payrise
across the board and increase in headcount. Also
a higher volume of work delivered across the
property team.
Surplus on disposal of fixed 3,423 3,401 Surplus on disposal of fixed assets has remained
assets consistent from the prior year. There was 1
additional property sale in current year but
proceeds driven by property and location.
Other interest receivable and 133 136 Normal fluctuations due to cash balance held
similar income
Interest and financing costs (7,263) (6,007) New funding and rising interest rates have
caused interest costs to increase.
Other finance costs 14 9 This is in line with the actuarial valuation.
Change in valuation of 0 (12) No revaluation undertaken this FY as not deemed
investment properties necessary every year as not material (only hold 4
investment properties)
Taxation - 3 No material changes in taxable activities which
remain very low. The 2025 tax charge has yet to
be finalised.
Actuarial (loss)/ gain on (362) (368) The actuarial loss reported in the financial
defined benefit pension statements is in line with the actuarial valuation
scheme provided by Barnett Waddingham.
Total Comprehensive Income 7,411 6,801
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SELWOOD MANAGEMENT LETTER 2024 7

Overview of Financial Statements

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

----- Start of picture text -----
2025 2024
£’000 £’000
Tangible fixed assets 518,233 498,257 Fixed assets have increased by £20.0m
compared to last year, this is due to development
of new housing and capital works to existing
homes, net of the depreciation charge for the
year. There has also been some additional spend
on Dynamics in the current year.
Investment properties 340 340 No revaluation undertaken this FY as not deemed
necessary every year as not material (only hold 4
investment properties) and therefore no
movement
Investment in group 125 125 No movement.
companies
Current assets 15,791 17,300 Current assets have decreased by £1.5m. This is
due to lower level of completed properties held for
sale at the year end.
Creditors: amounts (20,250) (17,730) Creditors within one year have increased by
falling due within one £2.5m mainly due to loan payments due within 1
year year being £1m higher, and an increase in rent
and service charges in advance
Creditors: amounts (219,967) (211,431) The movement is mainly due to an increase in
falling due after more borrowings.
than one year
- -
Pension liability This is in line with the actuarial valuation by
Barnett Waddingham. The pension asset has
been written down to zero in line with prior years.
Other provisions (4) (4) Deferred tax provision, we are yet to receive the
2025 tax computations
Reserves 294,268 286,857 Increase in reserves relates to the surplus for the
year from the SOCI.
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SELWOOD MANAGEMENT LETTER 2024 8

Independence

Ethics and Independence

In the UK and Ireland, auditors are subject to the ethical requirements of the Financial Reporting Council’s 2024 Revised Ethical Standards for Auditors.

International Standard on Auditing (UK and Ireland) 260 Communication with those Charged with Governance and good practice require us to confirm the following to those charged with governance:

The Group Audit and Finance Committee should take an active role in considering whether the external auditor’s independence might be impaired by the provision of non-audit services.

Relationships which may Bear on Objectivity and Independence

We are aware of no such relationships.

Non-Audit Services

In addition to our work as the Group’s external auditor, we have also performed the following:

The fees for these services is estimated to be approximately £11k. This work is carried out by separate teams from the audit team. We are confident that these additional services do not prejudice our independence and objectivity as the Group’s external auditor.

Conclusion

We therefore confirm that we are independent and that we comply with the requirements of the Financial Reporting Council’s Ethical standards in relation to the supply of non-audit services by an audit firm.

SELWOOD MANAGEMENT LETTER 2024 9

Independence

Accounting Policies

FRS102 requires that entities should review their accounting policies regularly to ensure that they are appropriate to its particular circumstances for the purposes of giving a true and fair view. The Group Audit and Finance Committee plays a key role in this process.

We have reviewed the Group’s accounting policies as stated in the financial statements in detail and confirm that we judge them to be appropriate to provide relevant, reliable, comparable, and understandable information.

Going Concern

The financial statements have been prepared on a going concern basis.

We have obtained the information that the Board has reviewed in assessing whether the going concern assumption is appropriate and tested the assumptions underlying this information. We are satisfied that the Board’s use of the going concern assumption is appropriate. We will need to keep this matter under review until the date of signing of the financial statements due to the on-going uncertainty brought about by the current economic climate.

Accounting Estimates

Key accounting estimates in the financial statements concern actuarial assumptions, depreciation rates, the level of bad and doubtful debt provision against tenant arrears and impairment provisions. We confirm that estimates have been made appropriately in line with our knowledge of the Group and the Sector and are disclosed satisfactorily in the financial statements.

Financial Statement Disclosures

We confirm that we judge the disclosures throughout the financial statements to be neutral, consistent and provide sufficient clarity to the user.

Matters Discussed with Management

There were no significant matters arising from the audit that were discussed with management at the clearance meeting held on 15 May 2025 other than as referred to elsewhere in this report.

Significant Difficulties Encountered During the Audit

There were no significant difficulties encountered during the audit.

Timing of Transactions

Our audit work confirmed that material transactions were recorded in the correct accounting periods. Accruals and prepayments were made for material items.

Group Strategic and Board Reports

We have not yet reviewed the other information in the narrative reporting sections of the financial statements. We will review and confirm that there is no material inconsistency between it and the financial statements upon receipt of a completed report.

SELWOOD MANAGEMENT LETTER 2024 10

Management Representation Letter and Audit Opinion

In accordance with ISA 580, we obtain written representation from management that they acknowledge their responsibility for preparing the accounts and have made all information available to us.

We will present our management representation letter for the Group for signing at the same time as the financial statements are signed.

We are intending to provide an unqualified audit opinion on the financial statements for the Group and its subsidiaries for the year ended 31 March 2025, subject to receipt of the following:

SELWOOD MANAGEMENT LETTER 2024 11

Materiality and Audit Adjustments

Materiality

ISA 260 requires us to report to management on all uncorrected misstatements identified during the audit, and to include in this report how we have calculated materiality, and any misstatements identified during the audit which have been corrected.

Materiality may be revised throughout the course of the audit, where we become aware of information during the audit that would have resulted in a different determination of materiality at the outset.

We are not required to report on corrected or uncorrected misstatements we believe are clearly trivial.

Materiality is calculated using 2% of turnover, except for Silcoa and Cottsbury where materiality is based on balance sheet assets. Triviality is the value above which we report errors to you. A summary of the final assessment of materiality is as follows:

Turnover Materiality Triviality
£’000 £’000 £’000
Selwood Housing Society Limited 56,922 1,138 57
Silcoa Limited (asset based) 180 8.4 0.3
Selwood Devco Limited 109 2.2 0.1
Cottsbury Homes Limited (asset based) 511 15.3 0.8

Disclosure adjustments

The accounts presented for audit were of high quality and largely compliant with FRS102, the SORP 2018 and the Accounting Direction 2022. A small number of presentational adjustments were made to the financial statements over the course of the audit, following discussion with the finance team. These included:

Uncorrected Misstatements

There were no uncorrected misstatements for any entities in the Group.

Corrected Misstatements

There were no corrected misstatements for any entities in the Group.

SELWOOD MANAGEMENT LETTER 2024 12

Accounting and Internal Control Systems

ISA 265 requires that we report to those charged with governance any significant deficiencies in internal control that we identify in the course of our audit work. Significant deficiencies are those deficiencies that we have identified during the audit and concluded are of sufficient importance to merit being communicated to those charged with governance.

In accordance with Revised ISA 315, we undertook a review of the Group’s self-assessment against the requirements set out in our IT General Controls (ITGCs) audit programme. Our review of the Group’s self-assessment did not identify any areas of significant weakness where we felt that we needed to perform additional testing as part of our audit.

Audit Findings

We are pleased to report that overall, we found that the Group’s systems and internal financial controls were operating effectively. There were no significant deficiencies identified as a result of our work.

SELWOOD MANAGEMENT LETTER 2024 13

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