Lovell reports record year despite challenging housing market conditions
Revenue rises 5% to £903m with operating profit up 16% and order book increasing to £2.33bn
National partnership housing specialist, Lovell, has reported a record set of results for 2025, contributing to parent company Morgan Sindall Group plc’s full-year results announcement to the London Stock Exchange this morning.
With strong and robust earnings growth, the Group delivered a strong performance in 2025, with Group revenue increasing by 10% to over £5bn, while adjusted Operating Profit increased by 39% to £232.6m.
Lovell delivers multi-tenure communities and provides innovative residential construction, regeneration, and retrofit solutions across England, Scotland, and Wales.
Against the backdrop of continued housing supply pressures across the UK and a constrained sales market, its partnership-led model is helping local authorities and housing associations accelerate the delivery of much-needed affordable and mixed tenure homes.
Revenue increased by 5% to £903m (2024: £861m), while operating profit rose 16% to £42m (2024: £36.1m).
The company ended the year with a secured order book of £2.33bn, an increase of 7% from 2024, with 60% of work extending into 2026 and beyond, providing clear visibility over future delivery.
Managing Director, Steve Coleby, said: “We’ve delivered record results in a year where the housing market has remained under pressure, which reflects the strength of our long-term partnerships and the exceptional efforts from our employees.
“What’s stood out this year is the consistency of demand from our public sector partners. That stability, combined with the scale of our long-term regeneration projects, has enabled us to grow and maintain a strong forward pipeline.
“With housing need remaining acute across the UK, our long-term partnerships are enabling us to continue delivering high-quality, affordable homes at scale.”
Performance during the year was driven by continued demand across construction and planned maintenance, which helped offset slower activity in mixed tenure developments as open market sales remained subdued.
Margins improved across both areas, supported by strong demand for contracting and an increase in the size and value of mixed tenure schemes progressing through delivery.
Lovell continued to invest in long-term partnerships, with demand from local authorities and housing associations remaining resilient, despite softer open market activity.
Last year, the firm delivered more than 5,000 new homes, with 85% of these homes affordable - a benchmark that matched previous years’ performance.
With the latest Homes England funding programme now open for bids, Lovell expects continued strength in its forward pipeline as it supports its housing association and local authority partners on their forward programmes.
Key projects during 2025 include:
East Anglia - in partnership with the Borough Council of King’s Lynn & West Norfolk, delivery of 226 new homes at Florence Fields in King’s Lynn, including 35% for general rent, affordable rent and shared ownership.
East Midlands - delivery of 309 homes (138 affordable) at Balderton Rise in Newark, benefitting from circa £1.7m from East Midlands Combined County Authority’s Brownfield Housing Fund.
Eastern - partnering with Together Housing on Cavendish Park, a 217 mixed tenure development in Bolsover.
London - following selection as Preferred Bidder, Lovell has now finalised contractual arrangements with London Borough of Barnet for its joint venture to progress the regeneration of Grahame Park North East. The first phase of the development has recently been granted planning permission.
North East - major regeneration project being delivered for Placefirst, creating 146 new homes in Benwell, Newcastle upon Tyne.
North West & North Wales - construction underway of Phase 2 of Phoenix Quarter, an intergenerational development in Pendleton comprising 485 homes including 30% affordable. Delivery through a joint venture with Together Housing, partnering with Salford Council.
Scotland - construction is underway in Winchburgh, comprising of 176 new homes of which 69 are social housing for Wheatley Homes East. The development is part of a coordinated effort between Lovell, Wheatley Homes East and West Lothian Council, supported by Scottish Government funding.
South Wales & West - continued progression of partnership agreements with Cardiff Council and Vale of Glamorgan Council to deliver circa 2,500 homes across 26 sites over the next decade, with work now underway on the first development.
· South West - Bincombe Park in Weymouth, delivered through a joint venture with Abri, will provide 500 homes including shared ownership and rental properties. More than 200 homes have been handed over in just over two years.
Southern - further sites progressing through its Kinsted joint venture with West Sussex County Council together with acquisition of new sites for mixed tenure development.
· West Midlands - appointment as preferred developer for the Druids Heath regeneration by Birmingham City Council, delivering approximately 3,500 new homes over the next 20 years.
· Renew Central - delivery of the Warm Homes: Social Housing Fund programme in Northamptonshire in partnership with Amplius, retrofitting more than 2,000 homes and achieving 97% customer satisfaction through a resident-focused approach.
· Renew North - £1.7m roofing replacement and asset improvement programme upgrading occupied homes in Wakefield, West Yorkshire, delivered with Vico Homes.
To view the Morgan Sindall Group plc full year results video: