3rd July 2026
Sanctuary Scotland
Sanctuary is pleased to share its audited financial results for 2025/2026.
Group revenue increased by £37.3 million, or 3.2%, to £1,216.6 million (2025: £1,179.3 million). Growth was primarily driven by higher affordable housing rental income, reflecting regulated rent increases with a continued focus on effective letting and tenancy management, and improved care occupancy and fee rates. The student business, also continued to contribute to the increase in Group revenue through improved occupancy levels.
2026 saw lower overall new home sales revenue due to greater shared ownership first tranche sales and fewer outright sales; revenue generated from sales continued to represent a low proportion of total revenue at 5.9% for the year (2025: 7.6%), consistent with the Group’s strategic focus on social and affordable rent tenures.
Underlying operating surplus increased to £230.6 million (2025: £226.0 million). The increase reflected stronger operating performance and efficiency savings across the Group, partly offset by higher maintenance, compliance, void-related works and employee costs.
Key Metrics | 2026 | 2025 |
|---|---|---|
Homes in management | 125,386 | 125,719 |
Revenue | £1,216.6m | £1,179.3m |
Underlying operating surplus | £230.6m | £226.0m |
Operating surplus | £239.2m | £215.7m |
Underlying operating surplus margin | 19.0% | 19.2% |
Operating surplus margin | 19.7% | 18.3% |
Social housing operating surplus margin | 29.9% | 29.3% |
EBITDA MRI interest cover | 110.2% | 110.2% |
Underlying operating margin remained broadly stable at 19.0% (2025: 19.2%), while the underlying margin excluding sales of new homes also improved to 20.3% (2025: 19.6%), demonstrating strengthening performance across the Group’s core, recurring activities. Social housing operating margin improved to 29.9% (2025: 29.3%).
Underlying surplus was £45.4 million (2025: £48.4 million) with improved operating performance offset by higher interest costs.
Cash generated from operating activities was £347.2 million (2025: £374.8 million), with the reduction primarily reflecting working capital movements, including inventory timing. Liquidity remained strong, with cash of £137.0 million and undrawn facilities of £318.3 million at 31 March 2026, sufficient to cover approximately 23 months of committed expenditure. The Groups cash position was further strengthened in June via the proceeds received from the Group’s £350 million note issue under its EMTN programme.
In May 2026 the Regulator of Social Housing awarded Sanctuary the highest consumer rating of C1. Housing resident satisfaction dropped slightly to 63% (2025: 64%) and care resident satisfaction increased to 96% (2025: 95%); customer satisfaction with repairs remained good at 74% (2025: 74%).
“The Group delivered a good financial performance in 2026 with improved operating performance helping mitigate employment, compliance and building safety cost pressures.
“The Group remains financially robust with strong liquidity metrics. This ensures we maintain compliance with all our Golden Rules, and retain strong investment‑grade credit ratings, whilst continuing to invest in our existing homes, services and technology.
“Our customer‑centred approach, ensuring residents are at the heart of everything we do, has also been recognised. Sanctuary has been awarded a C1 rating by the Regulator of Social Housing for consumer standards. The rating reflects the quality of our services and our commitment to listening to customers and continuing to improve.
“Our diversified operating model, disciplined financial management, and strong operational performance ensures we continue to deliver our social purpose.”
