City Hall in Cardiff, where the landlord operates (picture: Alamy)

First Choice Housing Association (FCHA), which provides specialist housing across Wales, has reported 19% year-on-year growth in operating surplus in its latest accounts.

The Cardiff-based landlord’s financial statements for the year to 31 March recorded an operating surplus of £3.2m, compared with £2.7m the year before. Surplus for the year was £1.8m, also up 19% from £1.5m in 2024-25.

FCHA’s statements said the increase in surplus was “due to slightly less expenditure on maintenance and management costs”.

However, figures in the report show these costs as broadly static, despite a reduction in spending on “other maintenance”, from £733,000 in 2024-25 to £485,000 this year.

They also show development revenue expenditure dropping from £1.24m to £551,000, contributing to an overall fall in expenditure from £8.9m in 2024-25 to £8.6m for 2025-26.

The association’s turnover rose slightly from £11.9m to £12.2m, despite “other revenue grant” income declining from £851,000 to £279,000. Income from rents rose from £9.5m to £10.3m, and from service charges from £401,000 to £472,000. Overall, reserves increased by 7.2% year on year, from £25m to £26.8m.

Across the 2025-26 financial year, FCHA completed 18 properties, providing 50 new bed spaces across 11 Welsh local authorities, its annual report said.

Resident groups served by the landlord include people with learning or physical disabilities, or those in need of healthcare support, young people transitioning from children’s to adults’ services, and ex-armed forces personnel.

The annual report recorded overall tenant satisfaction with FCHA of 89.5%, with 92% happy with repairs and maintenance and 96.5% agreeing that FCHA is “a good landlord”.

“The introduction of a ‘neither satisfied or dissatisfied’ answer option saw overall satisfaction with services reduced from previous years’ feedback, but the responses were still very positive,” the report said.

As of 31 March, the housing association’s total rent arrears over eight weeks were £30,289 across 13 bed spaces. Void rent arrears over eight weeks totalled £36,273 across 11 bed spaces.

FCHA received 13 complaints during 2025-26, the report said, including seven related to maintenance and three to other tenants’ behaviour.

A Welsh government regulatory judgement also issued this month assessed FCHA as ‘green’ for both governance and service delivery, and financial viability. It directed the association to “ensure robust arrangements are in place to evidence how tenant feedback and complaints inform service improvements and organisational decision-making”.

The judgement added that FCHA should “ensure that effective tenant engagement and consultation takes place when setting rents in accordance with the Welsh government Rent and Service Charge Standard”.

In response, Jason Wroe, interim chief executive of FCHA, said: “This judgement is effectively a health check on the organisation’s ability to manage its core business prudently, effectively and compliantly. These are the checks and balances that ensure that we continue to deliver services to our tenants that meet the highest standards.

“The judgement is testament to the dedication of colleagues across the organisation who work diligently to ensure that the services we provide meet the standards expected of us.

“Whilst we’re naturally delighted to receive this Welsh government stamp of approval, we won’t rest on our laurels. We provide housing to some of the most vulnerable people in society. That comes with a weight of responsibility and a duty of care to our tenants and their families.

“I’m fortunate to work with a passionate team who are committed to that work. I would also like to acknowledge the efforts and contribution of our partners who help us to achieve our mutual goals.”

Home

Specialist provider in Wales reports 19% rise in operating surplus