At the group’s half-year results in November 2023, it referenced the more challenging economic backdrop and the impact lower new home sales and increased repair, building and fire safety costs will have on its operating surplus.

Since then, the group has identified and investigated some one-off items which will result in a material deterioration in its full year forecast.

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These provisions and write-offs relate substantively to recognition of building safety liabilities already included in NHG’s long-term plan cashflows, and asset impairments. 

Collectively they amount to an exceptional charge of £110m which will result in a full-year deficit.

Despite this, NHG said that the group remains “financially strong”, while remaining committed to improvements in homes for its residents. 

In June, the group will provide a more detailed trading update for the year ended 31st  March 2024 ahead of its full year results.