Midland Heart Annual Financial Report 25/26
Midland Heart Capital PLC
04 August 2026
Midland Heart Limited
Audited financial and operational results for the year ended 31 March 2026
Midland Heart Limited has published its audited financial and operational results for the year ended 31 March 2026. The results reflect the first year of the organisation's corporate plan, Tenants at Heart, and a deliberate decision to increase investment in existing homes, new affordable homes, services and organisational capacity while maintaining a strong financial position.
Highlights
· Record investment of £55m in existing homes, up from £35m in 2025
· Investment in existing homes increased by 56%, with spend on new development up 20%
· Overall tenant satisfaction increased to a record 81.3%
· Commitment to deliver new homes increased from 2,250 to 2,750 by 2030
· Reinvestment increased to 9.5%, compared with 8.1% in 2025
· Financial resilience maintained, with gearing of 29.8%, liquidity of approximately £361m and an A1 Moody's credit rating
· Highest regulatory gradings retained: G1, V1 and C1
The results demonstrate Midland Heart's continued focus on long-term value for tenants and communities. During the year, the organisation increased investment in existing homes, new affordable homes, service quality and organisational capability. This planned increase in investment has affected surplus and operating margin compared with the prior year, but it is already supporting improved outcomes for tenants, including record satisfaction levels and continued progress on the quality, safety and sustainability of Midland Heart's homes.
Joe Reeves, Deputy Chief Executive, said:
"In the first year of our corporate plan, Tenants at Heart, we have made significant progress in the areas that matter most to tenants. Overall tenant satisfaction reached a record high, which is encouraging evidence that the priorities we have set with tenants, and the investments we are making, are delivering real improvements in the quality of homes and services we provide.
"Housing associations are being asked to meet higher expectations from tenants, regulators and communities. Tenants rightly expect safe, warm and well-maintained homes, regulators expect consistent delivery against strengthened standards, and the need for more affordable housing remains acute. During the year, we made a conscious decision to accelerate investment in our homes, services and people so that we can respond to those expectations and deliver the improvements tenants tell us matter most.
"A central challenge for the sector is balancing investment in existing homes with the continued delivery of new affordable housing. This year we have demonstrated that it is possible to do both. We delivered our largest ever investment programme in existing homes, improving quality, safety and energy efficiency, while continuing to build new affordable homes across the Midlands. In response to the scale of housing need, we have also increased our commitment from 2,250 to 2,750 new homes by 2030.
"Our financial results should be viewed in that context. We have chosen to invest more in existing homes, strengthen services and build organisational capacity because we believe that is the right thing to do for current and future tenants. Importantly, we have done so from a position of financial strength, maintaining a robust balance sheet, strong liquidity and the confidence of lenders and investors. That confidence enables us to take a long-term view and continue investing in homes, services and communities while delivering sustainable value for tenants, partners and funding providers."
Visit our Investor Hub to read Midland Heart’s 2025/26 financial statements
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