Annual Report and Financial Statements 2010/11 - Hanover

Annual Report and
Financial Statements
2010/11

Hanover Housing Association
and its subsidiaries: Report
and Financial Statements for
the year ended 31 March 2011
Contents
Review of the year
Chair’s foreword 4
Chief Executive’s review of 2010/11 5
Operating and Financial Review
Board, executives and secretary 12
Advisers and bankers 12
Review of the business 13
Report of the Board 19
Report of the independent auditors to the members
of Hanover Housing Association 22
Financial statements
Income and expenditure accounts 24
Balance sheets 26
Consolidated cash flow statement 28
Notes to the financial statements 29
Registered under the Industrial and Provident Societies Act 1965 (Number 16324R)
Registered with the Tenant Services Authority (Number L0071)
Registered with HM Revenue and Customs (Charities Division Number XN 9996)
Registered Office: Hanover House, 1 Bridge Close, Staines, TW18 4TB
Throughout this publication the term ‘Hanover Group Board’ means the Board of Hanover Housing Association which
as the Board of the Group parent fulfils the role of the Group Board
PAGE 2 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Popple Well Springs, Tadcaster, North Yorkshire
Review of
the year

Chair’s foreword
Organisational strength
These are not easy times for
housing associations and their
residents. Hanover faces serious
cuts to its forward programme
of new homes. Many of our
residents will see reductions in
the Supporting People grants
that provide extra assistance,
and many face anxieties about
increased costs, higher fuel bills
and restrictions on benefits.
But looking back over the year
covered by this Annual Report,
it is striking how much progress
Hanover has made.
At one level, this is about our financial and organisational strength. The sector’s regulator,
the Tenant Services Authority, placed Hanover amongst a small group of housing
associations which scored at the top level for financial viability and management/governance.
During the year we consolidated our structures. The previous separation of our role as
manager of services to homeowners from our role as landlord of rented properties has
ceased with the transfer of engagements of Hanover Property Management Limited to
Hanover Housing Association. And in Hackney – where we are undertaking works to
communal areas, gardens and entrances as the final stage in upgrading and improving
properties transferred to us by Hackney Council – our subsidiary Hanover in Hackney has
also transferred its engagements to Hanover Housing Association.
A changed approach
At another level, our progress is about a changed way of working. We are moving toward
models of devolution and ‘co-production’, with a sharing of decision-making – sometimes
about difficult choices – with the residents in the almost 19,000 properties we manage.
Each of our 600 estates now has a Local Agreement, negotiated with residents to define the
services they want and to determine how they are to be provided. This has included devolving
the power and the budget to select, appoint and allocate repairs work to local contractors; as
well as helping to increase the already high levels of satisfaction with our repairs service, this
has also resulted in substantial efficiency savings.
In terms of individual choice, the previous pilot programme of ‘copayments’ has now been
rolled out to offer every resident waiting for a replacement kitchen or bathroom the option to
get the work done themselves and receive a payment based on the costs that Hanover would
have incurred in due course.
At the same time we are pursuing our ‘tenure neutral’ approach. On the majority of our rented
retirement housing estates we are offering every fourth vacant property for sale. This will
provide a double benefit of allowing us to recycle the proceeds into the development of new
properties whilst also providing more options for the growing number of older people who
are, and want to remain, homeowners.
In our new housing, we are working on several ‘co-housing’ projects, planned jointly with
those who want to move in as owners or tenants. This approach is informing our designs of
retirement apartments for sale and rent, as we move on from the model of Extra Care housing.
PAGE 4 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

New developments
Apart from the projects still in our pipeline, public expenditure constraints mean the
immediate future for Extra Care is problematic. This year marks the openings of a further five
fantastic Extra Care estates in South Shields, Witham, Bristol, Tadcaster and Bromley, adding
another 274 properties to our already impressive portfolio of 2,576 properties on 63 Extra
Care estates. But we know that funding for further projects, with all the additional social and
care facilities these provide, will be scarce. Hence our plans for a new programme of highquality
retirement apartments that meet the aspirations of an ageing population, whilst also
releasing much needed family homes.
Hanover’s strong position could not have been achieved without the commitment and support
of our excellent Strategic Management Team led by Bruce Moore, and of my skilled and
dedicated fellow Board Members, always working alongside our Residents’ Council. Although
two exceptional Board Members retired – Angela Gillibrand and Jill Preston – having served the
maximum term of office, we were fortunate enough to replace them with three highly talented
and widely experienced new Board Members – Ian Cowley, Parmjit Dhanda and John Graham –
who will maintain Hanover’s leading role in the housing of older people.
Lord Richard Best, Chair
REVIEW OF THE YEAR • PAGE 5

Chief Executive’s review
of 2010/11
“May you live in interesting times” is supposed to be an ancient Chinese
curse. Although Hanover faces a number of interesting challenges we
have sought to respond positively to these pressures and see them as
opportunities rather than problems.
n Increased longevity and the ageing of society are likely to have profound consequences in a
situation where it is now normal for older people to live for considerable periods beyond the
official retirement age.
n Pressure to cut public expenditure means questions are increasingly being asked about the
justification for subsidies and support, with an intent to target assistance only on those
without resources of their own and in greatest immediate need.
n Ageism is endemic and too often we seek to protect, patronise or pity older people rather
than treat them as individuals entitled to equality, dignity and respect.
n The expectations of older people themselves are also increasing and as informed
consumers they will no longer simply accept services or housing that is not of a suitable
standard and quality.
Hanover has responded to these challenges by demonstrating leadership in its drive to make
retirement housing a positive choice. This goal is shown at the apex of the ‘Greek temple’ that
we have used to show how the components of Hanover’s strategy fit together.
Making retirement
housing a positive choice
Leading provider of high quality retirement housing
Honest Connected Positive Courageous Respectful
Clarity and choice
Help
New developments
Asset investments
Business performance and customer service
Communications Relationships Resources Information
PAGE 6 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Our vision is underpinned by Hanover’s values of being: honest, connected, positive,
courageous and respectful. Four pillars represent the core principles of Hanover’s strategy.
‘Clarity and choice’ and ‘Help’ are primarily concerned with the service Hanover provides
whilst the other two pillars of ‘New developments’ and ‘Asset investments’ are focused on the
quality of Hanover’s portfolio of properties.
Clarity and choice
Hanover has continued to devolve as much autonomy and choice to individuals and estates as
possible to allow residents to live the lives they choose and control the scope and specification
of the services they receive from Hanover. We have made it clear though that there are
aspects of our service that are non-negotiable, where Hanover needs to retain the authority
to make decisions. Guidance has been produced on the application of this framework of
individual choices, estate choices and Hanover decisions, along side the development of
Local Agreements to produce bespoke offers at each of our 600 estates. Giving each estate
a devolved budget for repairs and the power to select contractors has proved to be a great
success, as well as resulting in cost savings of over 7%.
We also started trials of alternative choice based catering options in Extra Care, including
flexible cashless vending; we intend to include these within the specification when catering
contracts are re-procured.
On many estates an option to purchase has been introduced with every fourth property being
offered for sale as part of a ‘tenure neutral’ programme. This aims to give greater choice of tenure
as well as freeing up resources to be recycled to help fund new retirement housing developments.
REVIEW OF THE YEAR • PAGE 7

Help
Hanover wants to ensure that residents get the help they require to live independently and as
they choose by offering a range of housing related support and signposting services.
Help is often on hand from Hanover’s Estate Managers, and emergency call centre (Hanover
On Call), but does not necessarily always need to be provided by Hanover. A person’s family,
friends, neighbours or volunteers may also be willing and able to help. Hanover has therefore
recruited a Community Links Manager and is publishing a third edition of Inpractice to share
and disseminate ideas and information about local initiatives and activities that other estates
might also want to adopt.
The capacity to provide help is, in many cases, based on funding from Supporting People
payments. Supporting People budgets are no longer protected and even though Hanover has
not yet suffered significant cuts we are preparing for the risk that budgets will be reduced and
eligibility criteria increased. Help will continue to be provided to enable residents to access
benefits and the support to which they are entitled, including aids and adaptations.
We have worked with specialist Equality and Diversity consultants and trainers (Challenge) to
develop understanding of diversity and ensure that Hanover’s estates are welcoming to everyone.
PAGE 8 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Popple Well Springs, Tadcaster, North Yorkshire
New developments
We opened a further five new Extra Care developments in 2010/11. We will continue to
develop more high quality Extra Care where this is commissioned by the social service
departments of progressive local authorities, who see this as a far more desirable alternative
to residential care.
We also remain committed to developing new retirement housing properties where older
people want to live. Design, location and arrangements for access to services will be critical
factors and this was confirmed by the report of the HAPPI (Housing our Ageing Population
Panel for Innovation) Group that was led by Hanover’s Chair, Lord Best, and also included
one of Hanover’s Resident Board Members (Antony Hamilton) as a panel member. The HAPPI
report also highlighted the positive potential of senior co-housing and Hanover has continued
to work with a number of potential co-housing groups to find suitable sites and identify the
factors that residents want to include in the design of their buildings and how they intend to
live as a self-supporting community.
Asset investment
It is essential that our properties are of a high standard that reflect the expectations of current
and future residents. We have undertaken a comprehensive asset management review for
every estate. We have identified that some estates need more attention than others and have
prioritised future investment and improvement works where they are needed most.
We have continued with our popular programme of providing grants to supplement local
fundraising to give residents scope to enhance the facilities and make other improvements to
their estates. Our pilot copayment scheme has also been extended to all estates. This offers
incentives to help residents who want to improve their properties by installing new kitchens
and bathrooms before they were due to be replaced by Hanover. Hanover contributes a
percentage of the cost and takes responsibility for future maintenance.
REVIEW OF THE YEAR • PAGE 9

Ambitious plans require strong foundations. As the financial statements show, Hanover is in
good financial health and performed well despite the economic challenges we faced in 2010/11.
Our operating surplus increased to £25.4 million, with a net surplus of £16.5 million and we
generated positive free cash flow of £9.3 million. This meant we comfortably met all loan
covenants and reduced core operating costs by £2 million on a year on year basis. There were
also corresponding improvements in
arrears and lettings performance and across
a range of other performance indicators.
Hanover was re-accredited as achieving
the Customer Service Excellence standard
with no areas of non-compliance and many
areas where performance was considered
to be exceptional and exemplary.
Our achievements are only possible
with the support of the experienced and
talented people who work for Hanover.
The financial statements show only
average numbers of employees expressed
as full time equivalents and deduct the
staff whose costs are directly charged to
homeowners. This does not do justice to
the importance of each and every one of
the 908 individuals who are employed by
Hanover. Listening and responding to the
views of staff is a key priority, but this is also a challenge because of the dispersed nature of
Hanover’s activities and the fact that more than half of staff are estate based.
We are committed to investing in and developing our staff. We delivered 4,045 days of
staff training in 2010/11, as well as taking on a second cohort for our innovative in-house
Chartered Management Institute Diploma qualification. We also secured Chartered Institute
of Housing accreditation for our Estate Manager training programme, and are developing a
complete suite of e-learning opportunities.
Customer Service sits alongside business performance as a foundation of our strategy
and approach. Hanover is committed to engaging with residents and responding to their
views and preferences across the whole spectrum of our services. We have a range of
mechanisms to ensure that the views of residents are taken into account in everything we
do. We have two residents as Board members, a strong Residents’ Council, a network of
residents’ representatives and residents’ associations, a consultative panel (Intouch) with
some 600 members and a social networking site for residents - as well as encouraging active
participation and engagement in local decision making on every estate.
During 2010/11 Hanover transferred the subsidiary organisations of the Hanover Group into
Hanover Housing Association to consolidate our strengths. The responsibilities of the previous
post of Property and Development Director were also reassigned amongst members of the
existing Strategic Management Team allowing technical and housing services to be brought
closer together. Rona Nicholson as Chief Operations Officer has also continued to bring added
benefit and focus to the quality of Hanover’s services.
I am therefore confident that Hanover is in good strength and well positioned and prepared for
whatever interesting challenges lie ahead. We remain committed to providing the best retirement
housing services we can and ensuring that Hanover’s service remains, as always, a positive choice.
Bruce Moore, Chief Executive
PAGE 10 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Operating and
Financial Review

Board, executives and secretary
Hanover Group Board
Lord Richard Best OBE
Group Chair
Robert Banner OBE
Chair, Resources Committee
Penny Bennett
Chair, Group Remuneration
Committee
Pat Corless
Chair, Group Audit Committee
Bruce Moore
Chief Executive
Jill Preston
Champion for Resident Involvement
Resigned 30 September 2010
Arvinda Gohil
Champion for Equality
and Diversity
Angela Gillibrand
Member
Resigned 30 September 2010
Brenda Jones
Member (Resident)
Resigned 30 September 2010
Brian Goodhand
Member (Resident Interim)
Resigned 30 September 2010
Ian Cowley
Member
Appointed 30 September 2010
Parmjit Dhanda
Member
Appointed 30 September 2010
John Graham OBE
Champion for Resident Involvement
Appointed 30 September 2010
Antony Hamilton
Member (Resident)
Appointed 30 September 2010
Andrew Thrower
Member (Resident)
Appointed 30 September 2010
Strategic Management Team
Bruce Moore
Chief Executive
Rona Nicholson
Chief Operations Officer
Norman Courts
Property and Development Director
Resigned 30 June 2010
Barbara Matthews
Finance and Resources Director
Tony Tench
Retirement Housing Director
Claire Anderson
Extra Care and Services Director
Secretary
Michael Fuller
Secretary, Hanover Housing
Association
Advisers and bankers
Bankers
Barclays Bank plc
1 Churchill Place
Canary Wharf
London
E14 5HP
Principal solicitors
Winckworth Sherwood LLP
Minerva House
5 Montague Close
London
SE1 9BB
Auditors
KPMG LLP
Arlington Business Park
Theale
Reading
RG7 4SD
PAGE 12 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Review of the business
Principal activities
Hanover Housing Group specialises in the design,
development and management of housing, support
and services for older people. The Group manages
nearly 19,000 properties to rent or lease, and is
developing new housing and equity models to make
its homes more accessible to a greater number
of people. Details of subsidiaries are shown in
note 29 of the financial statements.
During the 2010/11 financial year Hanover simplified its
governance and administrative arrangements in order to
bring them in line with business operations, which were
integrated across the Group following the 2008 corporate
restructure. On 30 September 2010, Hanover in Hackney
Limited transferred its engagements into the Group parent,
Hanover Housing Association (HHA). On 31 March 2011,
Hanover Property Management Limited also transferred
its engagements into HHA. Both of these subsidiary
entities have been deregistered, meaning that HHA now
has direct ownership and management responsibility for
all operating activity. The only active remaining subsidiary
entity is Hanover Housing Developments Limited.
Group performance headlines
Financial performance
2011 2010 Movement
Turnover £m 89.6 93.0 -3.4
Operating surplus £m 25.4 17.6 +7.8
Operating surplus % 28.4 18.9 +9.5
Net surplus/(deficit) £m 16.5 9.2 +7.3
Net surplus/(deficit) % 18.4 9.8 +8.6
Free cash flow £m* 9.3 4.0 +5.3
Total fixed assets £m 284.8 276.2 +8.6
Total loan debt £m 211.4 196.3 +15.1
Total reserves £m 74.5 50.5 +24
Average cost of funds % 5.5 5.8 -0.3
*‘Free cash flow’ is an internal measure of core business cash generation. The measure includes operating activity, net interest payments and investment
in existing stock. It excludes depreciation and impairment, new development spend and net proceeds from trading sales and asset disposals.
Hanover achieved very strong financial performance in
the year despite a £3.4m fall in turnover, which arose
in the main from a much reduced programme of new
property trading sales.
n The operating surplus, at 28.4%, was comfortably
above the 20% aspirational target set by the Board.
n The core business remained strongly cashgenerative,
thus increasing capacity for future
investment within our financial business plan.
n The net surplus achieved was £16.5m, well ahead
of budget. This included a £5.1m net write back of
pension cost in respect of our final salary pension
schemes. The main reason for the write back is the
change in legislation in valuing future benefits.
n Core business operating costs excluding
depreciation, pension adjustments and sales activity
reduced by £2m (3.6%) in the year – demonstrating
the culture of value for money and cost control
prevalent within the business.
n Year-on-year cost savings were achieved in several
key operational areas, including void losses, routine
maintenance and management costs.
n On a less positive note, underspends on service
contracts and revenue and capital planned works
reflected failure to deliver the budgeted investment
in existing stock. Internal structures and processes
have been changed to improve performance in this
area through 2011/12 and beyond.
report and financial statements for the year ended 31 March 2011 • PAGE 13

Group performance headlines
n The key interest cover and gearing covenants set
by our lenders were met with a considerable degree
of comfort.
n The business was able to continue its investment in
new properties without recourse to additional loan
debt thanks to strong underlying cash flows. Some
additional debt was drawn in order to lock in to
advantageous interest rates and this has been
placed on deposit for future use.
Non-financial performance
As at 31 March 2011 2010 2009
Current tenant rent arrears % 1.8 2.5 2.2
Void rent loss % 2.0 3.0 2.8
Properties vacant and available to let % 1.3 1.5 3.7
Properties vacant and not available to let % 0.3 0.3 0.1
Average re-let period days 35 40 29
Lettings to applicants from Black and
Minority Ethnic communities %
2.9 4.3 4.7
Emergency repairs completed on time % 90 91 93
Urgent repairs completed on time % 91 91 92
Routine repairs completed on time % 97 97 97
Non-financial performance during the year also showed
improvement in most areas. Process improvements
in the areas of rent arrears collection and void
management started to bear fruit, and results in these
areas show a reversal of the slow but steady decline
in preceding years. Reported completion of repairs
within target times was below standard during the year,
although resident satisfaction with the repairs service
remained high. A new repairs management system is
being introduced during 2011/12 and this will improve
the ability of users to track and update the status of
repairs jobs on a timely basis.
Resources and relationships
Our finances:
n We plan to achieve positive cash flow year-on-year
from our core operational activity, and have
achieved strong results in this respect in each of
the last two years.
n Budget holders across the business work within a
challenging financial management regime aimed at
maximising value for money for our residents – this
has delivered a healthy budget for 2011/12 which
exhibits further cost savings for reinvestment in new
and improved services.
n Our long-term financial business plan demonstrates
strong financial viability, with capacity to grow the
business in line with strategic plans and ability to
withstand adverse financial scenarios.
n We hold £49m of undrawn loan facilities, sufficient to
fund planned growth activity throughout 2011/12.
If current development spend projections come to
fruition, we anticipate going to the market for additional
funds towards the end of the 2011/12 financial year.
n Charged loan security is already in place to
enable draw down from existing facilities as and
when required.
n In line with our Treasury Policy and Strategy, 80%
of our drawn loan debt is held on a fixed or
hedged interest rate basis – limiting our exposure
to expected upward movements in rates over the
medium term.
Our staff:
n Hanover remains an accredited Investor in People
organisation.
n During the year 285 corporate training courses were
delivered, attended by 850 of our staff. In total, over
4,000 training days were completed.
n The National Vocational Qualifications for lower
level staff and the Chartered Management Institute
accredited management development programme for
middle managers both continued successfully into
2011/12 after their launch in the previous year.
PAGE 14 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Growing the business:
n We continue to work with local authorities to develop
suitable opportunities for provision of new Extra
Care estates. By its nature, Extra Care development
is typically more expensive to develop and the
diminution in grant funding availability will increase
the challenge to deliver financially viable schemes.
n Plans to reintroduce a sustained programme of new
retirement housing development are in the early stages
of delivery. In March 2011 we completed sale of our
first two tenure neutral properties and, as at the end of
the year, a number of other sales were in the pipeline.
Tenure neutral is the term applied to the conversion
of previously rented properties to home ownership
through open market sales of leases to existing or
new residents. Net proceeds from this programme are
ring-fenced for reinvestment in new retirement housing
provision as a proxy for grant funding.
n Work continued through the year to progress
redevelopment of two existing Hanover sites via the
Hanover Bloc joint venture. Both of these schemes
have experienced some delays due to local authority
planning complexities.
The economic environment
During 2011/12 the UK continued its slow emergence
from deep recession, but the threat of a slip back into
‘double dip’ recession has still not entirely receded. As
predicted in last year’s Operating and Financial Review,
some of the policies introduced by the coalition
government have had a significant and, largely, adverse
impact on the social housing sector. There also remain
a number of wider external economic and financial
factors which will continue to significantly influence the
work that we do in the years ahead.
Inflation
60% of our 2010/11 turnover came from rents.
Government regulation of social housing rents, particularly
the direct link to retail price index inflation (RPI), continues
to cause a relatively unstable operating environment
for housing associations. In 2010/11 many of our
residents benefited from a modest rent reduction, with
the reference RPI figure at minus 1.4%. For 2011/12
we have again seen a swing in the opposite direction,
with reference RPI at 4.6%. Economists are currently
predicting that reference RPI inflation for the 2012/13
rent increase might be in the region of 6%. This may
cause financial hardship for many social housing
residents and housing associations might have to
reconsider their rent increase policies. It may be the case
that the government itself reviews the current regulatory
regime to see if an alternative rent increase mechanism
can be introduced which protects residents from
excessive rent increases without threatening the financial
viability of social landlords. An increase linked to the
(generally lower) consumer prices index of inflation has
been mooted as a possible outcome of such a review.
In addition to the direct impact on rental income, the
on-going volatility of inflation within the economy
presents a challenge in terms of the mismatch between
costs and income. Repairs and maintenance expenditure
gives us our largest exposure in this respect, and it
therefore remains imperative that efficient procurement
and strong cost control take place to ensure that these
costs are contained within acceptable parameters.
Interest rates
The historically low interest rate environment has been
a spin-off benefit from the recession and, contrary to
general expectations at the start of the year, this was
sustained throughout 2010/11. Hanover’s gain from this
has been relatively modest due to our policy to hold
the majority of drawn loan finance at fixed or hedged
rates of interest. However, this policy also means that
our exposure to upward shifts in interest rates, which
are expected to occur once economic recovery gains
momentum (or when the inflationary threat becomes too
great for monetary policy makers to discount), is also low.
Our financial planning therefore benefits from a reasonable
degree of certainty so far as the majority of our loan
interest costs are concerned, and a rise in rates would not
unduly impede our ability to deliver our growth strategy.
House prices
Like many other registered providers, our long-term
growth plan is becoming less dependent on availability
of grant funding and increasingly reliant on generation
of healthy surpluses from sales of new properties, either
on an outright sale or shared ownership basis. The
housing market remained flat during the financial year.
Hanover’s activity during the year was modest, and lower
than expected sales volumes were offset by higher than
expected average prices to produce an out-turn position
which was broadly neutral when compared to budget. Our
current pipeline of new property sales is now very low, but
we are focussed on the tenure neutral programme as a
key generator of capacity for future growth. Controls are
in place to ensure that all properties entered into tenure
neutral generate a surplus which improves the overall
financial capacity of the business – if they do not meet
the target sale price, they will not be sold. Proceeds from
future sales remain a key sensitivity within our financial
plans, although it should be remembered that this activity
underpins capacity for future social housing growth rather
than retention of service levels to existing residents.
Taxation
As an exempt charity our exposure to corporation tax
is low. However, VAT is a significant cost to Hanover.
Standard rate VAT increased to 20% in January this year.
The additional cost to Hanover is in the region of £750k
per annum. A proportion of this is recoverable via service
charges – but this in turn places pressure on our residents
and we will continue to prioritise value for money within
service charges in order to offset this and other potential
report and financial statements for the year ended 31 March 2011 • PAGE 15

The economic environment
cost increases. Further VAT increases cannot be ruled
out, and the sector also faces the threat of challenge to
the charitable status many registered providers enjoy.
This may come under increasing scrutiny as providers
become more involved in diverse activities and, in some
cases, start to charge higher rents in line with government
policy. The end result may be exposure to corporation
tax liabilities, which would clearly compromise capacity for
future investment in new build and service improvements.
Government funding
Radical changes to the benefits system have been
announced, and are starting to be implemented
by the government. To date, these are in the main
targeted at people of working age and there is less
appetite to restrict benefits entitlement for the retired.
Nevertheless, future pressures in this area certainly
cannot be ruled out and indirectly, we are already
starting to feel the impact of funding reductions.
Supporting People commissioning authorities are taking
a robust negotiating stance with service providers and
in some localities we have experienced arbitrary cuts to
Supporting People grant receipts. Elsewhere, where we
own Extra Care estates with higher service charges which
reflect the nature of service provision, local authorities
are starting to challenge those service charges in the
context of the impact on housing benefit bills.
Financial summary
Overview
Hanover ends the year in a strong financial position.
The reported net surplus of £16.5m (2010: £9.2m) and
the operating surplus of £25.4m (2010: £17.6m) were
both comfortably ahead of budget expectations.
The balance sheet was strengthened through the
addition of a net £8.6m fixed assets. This was funded
through a combination of working capital and sales and
disposals proceeds. Long-term creditors increased by
£15.4m over the year, but during the year a drawdown
of £20m was made ahead of need in order to take
advantage of competitive funding terms (agreed before
the credit crunch) before expiry of the loan availability
period. Accordingly, the business also held £21.7m of
investments at year end (2010: £3.7m). Total reserves
increased by £24m during the year. In addition to the
strong operating performance, this reflects favourable
movements in respect of Hanover’s final salary pension
schemes following revised actuarial assessments of
net liabilities.
Income
Turnover for the year was below prior year levels,
primarily because of significantly reduced trading sales
activity. This was in line with our plans for the year,
with sales activity being restricted to the pipeline of
residual properties which remained unsold from new
mixed tenure estates built in prior years. 21 sales
were completed during the year, leaving 24 unsold
properties as at 31 March 2011 of which three were
reserved for sale with conveyancing work on-going.
Rent and service charge losses due to void properties
were reduced by £0.8m year-on-year, reflecting the
processing improvements put in place to improve void
turnaround times and reduce the number of properties
remaining vacant for significant periods. On the whole
there remains strong demand for our properties and
there are no significant areas where demand is weaker
– our usual reviews as part of the year end reporting
process revealed no estates where an impairment
adjustment was deemed necessary.
Rent and service charge arrears were also steadily reduced
through the year on the back of improved processes, with
gross arrears ending the year £0.5m below the 2010 level.
Operating costs
Budget holders exercised good cost control through
the year. Reduction of day-to-day repair costs was a
real success story, following devolution of responsibility
for these budgets out to estates at the start of the year.
Day-to-day repairs ended the year £576k below budget.
Planned maintenance expenditure was £1.9m below
budget, and as has been the case in recent years this
was caused by activity level shortfalls rather than
procurement efficiencies. A completely revised approach
to delivery of planned works has been introduced at the
start of 2011/12 to improve performance in this area
and meet the expectations of our residents.
Fixed asset disposals
The Board has approved a programme to dispose
of a small number of estates which no longer fit with
our core strategy for service provision. Net surpluses
from these disposals are earmarked for reinvestment
in our other existing estates. This activity delivered
surpluses of £2.4m during the year (2010: £3.9m).
A further modest programme of disposals is planned
for 2011/12, after which the current programme will
be substantially complete – although we will continue
to regularly review the operating and financial
performance of all our estates and make informed
asset management decisions on the back of this
review cycle.
Fixed asset additions
Net of grant, £28.1m was expended on new
developments during the year and £8.1m was incurred on
capitalised (major) works and improvements to existing
properties. Cash generated from operating activities and
asset disposals was sufficient to fund this activity without
recourse to additional loan drawdown, and £9.1m of loan
repayments were achieved during the year. £24.3m of
PAGE 16 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

loan debt was drawn during the year, but this was purely
to ensure that advantageous pricing was not allowed
to expire and all of the drawn debt was immediately
invested until such time as it is required to fund growth.
Investment was made in office assets – primarily IT
systems and equipment – in the year. Work was also
carried out to reconcile historic estate asset balances
held on our fixed assets register, and this resulted in
significant adjustments to remove obsolete entries and
achieve a clean position going forward.
Reserves
Adjustments arising from revised actuarial valuations
of our final salary pension schemes at year end had a
significant impact on reserves levels, with a total £24m
addition to reserves being entered in the accounts.
The key component in this improved position is the
switch from the retail price index to the consumer
price index inflation measure for future pension
indexations, in line with government legislation.
Looking forward
Hanover faces the future from a position of
financial strength, but in the full knowledge that the
environment within which we operate remains tough.
Over recent years we have increased our focus on
financial management as an essential component of
strategy formulation and delivery, and throughout
the business we are clear that positive cash flow and
sound finances are fundamental to our long-term
business success. At the same time, we recognise
that our residents see it as imperative that we achieve
value for money out of the rent and service charge
they pay to us. Reducing waste and bureaucracy and
maximising the resources available for investment in
new and enhanced services on our estates drive our
decision making processes. Finally, we recognise the
differing but complementary needs of our lenders,
regulator, local authority partners and other corporate
stakeholders when scrutinising our financial viability.
We believe that we are well placed to meet our future
challenges but recognise that much hard work is
necessary to continue delivering on all fronts. Our aim
is to keep building on the financial strength within the
business to ensure that Hanover becomes recognised
as the leading provider for older people.
Capital structure and treasury policy
At March 2010, Hanover had £77m of unutilised loan
facilities available from major UK banks. This has reduced
in the year to £49m; however £21m was on deposit as a
result of a loan availability period ending. Thus, net facilities
available at 31 March 2011 were £70m. This headroom
meets all known and estimated commitments for at least
the next two years, and Hanover is fully compliant with the
latest Treasury Strategy. In order to maintain headroom,
a fundraising exercise is expected to be undertaken in
late 2011/12. Hanover’s Treasury Management objectives
include covenant compliance, ensuring there are sufficient
resources to meet all obligations, and minimising
interest payable in line with risk management guidelines.
Borrowing facilities and net debt at the end of the year were:
Gross debt
Maturity
0 – 1 year
1 – 2 years
2 – 5 years
5 – 10 years
10 – 20 years
20 years and over
Total
2010/11
£m
1.8
1.5
6.1
37.6
76.0
88.7
211.7
2009/10
£m
2.0
4.5
10.6
39.5
65.2
74.5
196.3
Loans
Fixed rate
Variable rate
Total drawn down
Available facility
Covenants
2010/11
£m
168.8
42.9
211.7
260.3
2009/10
£m
151.2
45.1
196.3
273.3
Hanover remains in compliance with all its financial
covenants, which are primarily based on gearing and
interest cover. Covenants are kept well within a margin
of safety against levels prescribed in loan agreements.
Gearing increased slightly from 46% in 2010 to 47%
as at March 2011. Borrowings increased over the year.
However, grant and reserves also increased which,
overall, resulted in only a small impact on gearing. In
2010, interest cover was 2.71, and this increased in
2011 to 2.81, reflecting various efficiencies made in
the year such as maintenance, interest payable and
corporate overheads.
Cash & short-term deposits
Net debt
20.3
191.4
3.8
192.5
report and financial statements for the year ended 31 March 2011 • PAGE 17

Cash flow
The net cash outflow in 2011 was £1.8m (2010:
£1.2m). The net cash inflow from operating activities
of £29.4m (2010: £31.2m) decreased slightly year on
year due to working capital movements and changes
to provisions mostly netting off the increase in
operating surplus. Note 26 to the financial statements
contains the detailed cash flow disclosures.
Accounting policies
The Group’s accounting policies are set out in note 1
to the financial statements.
Statement of compliance
In preparing this operating and financial review, the Board
has followed the principles set out in Part 3 of the SORP
‘Accounting by Registered Social Landlords (Update 2008)’.
Fixed assets
Details of fixed assets are shown in notes 10 and 11
of the financial statements.
Housing properties are included on the balance sheet at
a net book value (gross historical cost less depreciation,
Social Housing Grant and other public grants) of
£271m (2010: £264m). The Board believes that the
current market value of these properties is significantly
in excess of their net book value. This belief is based
on rolling valuations of large elements of the portfolio,
coupled with the Group’s planned maintenance
programme based on stock condition surveys. The Group
maintains its properties to a high standard and the
Board does not believe that any of its existing properties
have suffered from any impairment during the year.
Post balance sheet events
The Board has no post balance sheet events to report.
Going concern
After completing a financial business plan and making
enquiries, the directors of the Group have a reasonable
expectation that the Group has adequate resources to
continue in operational existence for the foreseeable
future. For this reason the going concern basis has
been adopted in these financial statements.
Group highlights – five year summary
For the year ended 31 March 2011
2010
2009
2008
2007
£m
£m
£m
£m
£m
Group income and expenditure account
Total turnover 89.6 93.0 85.4 80.7 70.9
Operating surplus 25.4 17.6 6.7 11.4 11.8
Interest payable 11.2 11.9 11.3 10.4 10.0
Surplus/(deficit) after interest and tax 16.5 9.1 (5.3) 4.3 3.0
Group balance sheet
Tangible fixed assets, net of depreciation 599.2 576.0 552.5 528.9 476.1
SHG and other capital grants 314.4 299.3 290.1 270.7 251.3
Net current assets/(liabilities) 10.3 (7.7) 3.9 (4.1) 11.7
Net debt 211.1 195.7 203.0 186.7 154.0
Total reserves 74.5 50.5 53.5 63.6 55.0
Statistics
Operating margin 28.4% 18.9% 7.9% 14.1% 16.6%
Surplus/(deficit) for the year as % of turnover 18.4% 9.8% (6.2%) 5.3% 4.3%
Gearing (net debt as % of reserves plus
grants plus housing depreciation)
47% 46% 50% 49% 44%
Accommodation managed at the year end Dwellings Dwellings Dwellings Dwellings Dwellings
Total housing stock owned 17,643 17,549 17,631 16,908 15,977
Total housing stock managed 18,823 18,756 18,761 18,947 18,156
PAGE 18 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Report of the Board
Objectives and values
Our vision is to be the leading provider for older
people looking for high quality retirement housing and
related services.
Our values provide a sense of direction and
represent our character, culture and ethos – they
should be behaviours we expect to see displayed
on a daily basis:
n Honest... demonstrating openness and transparency
when dealing with others and giving timely feedback
n Connected... reducing barriers and helping others
n Positive... about what we do and taking every
opportunity to recognise and celebrate success
n Courageous... pioneering services, always seeking to
improve and take responsibility for our actions
n Respectful... listening and putting excellent
customer service at the heart of everything we do
Statement of current obligations
of Board members to the Board
and to the Association
Common responsibility
All Board members share common responsibility for
the Board’s decisions and to act only in the interests of
the Association and not of any constituency or interest
group. The liability of Board members (except for their
own criminal acts) is limited provided they have acted
in good faith.
Individual responsibility
Each Board member is obliged to:
n Uphold the values and objectives of the Association;
n Act only in the interests of the Association and not
on behalf of any constituency or interest group;
n Uphold the Association’s core policies;
n Attend and participate in meetings of the Board or
of committees;
n Contribute to discussion and debate and to share
responsibility for the resulting decisions;
n Represent the Association as required;
n Respect confidentiality of information;
n Uphold our Code of Conduct including the
declaration of any relevant interest;
n Act as mentor to new Board or committee members
as appropriate;
n Ensure private interests do not come into conflict
with the individual’s role on the Board or committee.
Statement of the skills, qualities
and experience required by the
Board amongst its members
Skills and experience
The Board seeks to ensure an appropriate balance
of skills and experience in the following key areas
within the Board: housing needs that the Association
aims to meet; resident needs and concerns; strategic
management; general business skills including
management of staff, properties and contracts; finance;
legal matters; community relations and needs including
equality matters; working with local authorities; property
development and building; public relations; management
of information technology. The level of skill or experience
required is that appropriate to a senior post in an
organisation of the size and scope of the Association.
Qualities
Board members are required to comply with HHA’s
Code of Conduct and the seven principles of public
life identified by the Nolan Committee which are:
selflessness; integrity; objectivity; accountability;
openness; honesty and leadership.
Admission of new shareholders
The Board’s policy on shareholder membership adopted
in May 2011 is that only individuals serving or selected
to serve as Board members may be shareholders. Those
shareholders who were shareholders when this policy
was adopted but who were not Board members at that
time may retain their share until they cease to be a
shareholder in accordance with Rules C14 and C15.
Procedure for electing
Resident Board Members
Details of the arrangements are available on
Hanover’s website.
Statement of the Board’s
responsibilities in respect of the
report and financial statements
The Board is responsible for preparing the Board’s
report and the financial statements in accordance with
applicable law and regulations.
report and financial statements for the year ended 31 March 2011 • PAGE 19

Statement of the Board’s responsibilities in respect
of the report and financial statements
Industrial and Provident Society law requires
the Board to prepare the financial statements for
each financial year. Under those regulations the
Board has elected to prepare the consolidated and
Association financial statements in accordance with
UK Accounting Standards.
The financial statements are required by law to give
a true and fair view of the state of affairs of the
Group and Association and of the surplus or deficit
for that period.
In preparing these financial statements the Board is
required to:
• select suitable accounting policies and then apply
them consistently;
• make judgements and estimates that are
reasonable and prudent;
• state whether applicable UK Accounting
Standards and the Statement of Recommended
Practice have been followed, subject to any material
departures disclosed and explained in
the financial statements; and
• prepare the financial statements on the going
concern basis unless it is inappropriate to
presume that the Group and Association will
continue in operation.
The Board is responsible for keeping proper
accounting records which disclose with reasonable
accuracy at any time the financial position of the
Group and Association, and enable them to ensure
that its financial statements comply with the Industrial
and Provident Societies Acts 1965 to 2003, the
Industrial and Provident Societies (Group Accounts)
Regulations 1969, the Housing Act 1996 and the
Accounting Requirements for Registered Social
Landlords General Determination 2006. The Board
has general responsibility for taking such steps as
are reasonably open to it to safeguard the assets of
the Group and Association and to prevent and detect
fraud and other irregularities.
The Board is responsible for the maintenance and
integrity of the corporate and financial information
included on the Association’s website. Legislation in
the UK governing the preparation and dissemination
of financial statements may differ from legislation in
other jurisdictions.
Board members and
Strategic Management Team
The present Board members and the members
of the Strategic Management Team are set out
on page 12.
Responsibility for internal
control systems and review
of their effectiveness
The Board acknowledges responsibility for the Group’s
system of internal control and for reviewing its
effectiveness. This responsibility applies to all Group
entities. The internal control system is designed to
manage rather than eliminate the risk of failure to achieve
business objectives and provides reasonable, not absolute,
assurance against material misstatement or loss.
The Board has established a framework to assess
the effectiveness of the internal control system. This
framework has been in place throughout the year to
31 March 2011 and up to the date of approval of the
financial statements.
The process the Board uses to review internal control
effectiveness, together with key elements of the
control framework includes:
• Control environment The organisation structure has
clearly defined levels of responsibility and authority,
supported by documented controls and procedures
appropriate to the specific areas concerned.
• Financial monitoring procedures The Board
approves the annual budget, reviews quarterly
performance, balance sheets and cash flows
against plan, and receives explanations from
management on significant variances.
Risk management
The Group’s senior managers identify the nature and
extent of the significant risks facing their areas of
responsibility and the likelihood of their materialising,
and the controls in place to manage such risks.
• Management assurances The Strategic
Management Team prepare formal statements,
acknowledging responsibility for the internal control
and risk management systems in their business
areas and the subsidiaries and confirming that they
have reviewed the effectiveness of those systems.
• Internal Audit The Group’s control systems and
processes are subject to risk focussed internal
audit, which plays an important role in providing
independent assurance on key control processes.
• Group Audit Committee The Group Audit
Committee reviews internal audit plans and reports,
together with external audit plans and management
letters. The scope of the work, authority and
resources of the Internal Audit Service are reviewed
by the Audit Committee, which also conducts an
annual self-appraisal exercise to monitor its own
effectiveness. The Group Audit Committee meets
quarterly and reports its findings to the Board after
each meeting as well as in an annual summary.
PAGE 20 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

• Fraud Hanover complies with the Tenant Services
Authority’s requirements on fraud. In particular,
the anti-fraud policy and response plan outline
a policy on responding to suspected fraud and
corruption. Additionally, a register is maintained
of all actual and attempted fraud, and all cases in
excess of £5,000 must be reported to the Tenant
Services Authority. No such cases were recorded
during the financial year, although in April 2011
we became aware of, recorded and reported to
the TSA an attempted fraud in respect of refund
cheques issued to residents. Hanover suffered no
financial loss as a result of this fraud attempt, but
the value of the cheques in question exceeded
£5,000. The register is reviewed at least annually
by the Board.
Equal opportunities
The Group is committed to equal opportunities
and in particular supports the employment of
disabled people, both in recruitment and in the
retention of employees who become disabled whilst
in the employment of the Group.
Health and safety
The Board is aware of its responsibilities on all matters
relating to health and safety. The Group has prepared
detailed health and safety policies and provides staff
training and education on health and safety matters.
Statement as to disclosure
of information to auditors
The current Board members have taken reasonable steps
to make themselves aware of any information needed by
the Group’s auditors for the purpose of their audit and to
establish that the auditors are aware of that information.
Board members are not aware of any relevant audit
information of which the Group’s auditors are unaware.
Auditors
A resolution to reappoint KPMG LLP as auditors of
the Hanover Housing Group is to be proposed at the
forthcoming Annual General Meeting.
The Report of the Board was approved on 21 July 2011 and signed on its behalf by:
Lord Richard Best OBE
Chair – Board Member
Robert Banner OBE
Board Member
Michael Fuller
Company Secretary
report and financial statements for the year ended 31 March 2011 • PAGE 21

Report of the independent auditors to the
members of Hanover Housing Association
We have audited the financial statements Hanover
Housing Association for the year ended 31 March
2011 which comprise the Income and Expenditure
Accounts and the Balance Sheets for the Group and
the Association, the Consolidated Statement of
Recognised Surpluses and Deficits, the Consolidated
Cash Flow Statement and the related notes. The
financial reporting framework that has been applied in
their preparation is applicable law and UK Accounting
Standards (UK Generally Accepted Accounting Practice).
This report is made solely to the Association’s members,
as a body, in accordance with section 128 of the
Housing and Regeneration Act 2008 and section 9 of the
Friendly and Industrial and Provident Societies Act 1968.
Our audit work has been undertaken so that we might
state to the Association’s members those matters we are
required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to
anyone other than the Association and the Association’s
members, as a body, for our audit work, for this report,
or for the opinions we have formed.
Respective responsibilities of
the Board and auditors
As more fully explained in the Statement of Board’s
Responsibilities set out on page 19, the Association’s
Board is responsible for the preparation of financial
statements which give a true and fair view. Our
responsibility is to audit, and express an opinion on, the
financial statements in accordance with applicable law
and International Standards on Auditing (UK and Ireland).
Those standards require us to comply with the Auditing
Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the
financial statements
A description of the scope of an audit of financial
statements is provided on the APB’s website at
www.frc.org.uk/apb/scope/private.cfm
We read the other information accompanying the
financial statements and consider whether it is
consistent with those statements. We consider the
implications for our report if we become aware of any
apparent misstatements within it. Our responsibilities
do not extend to any other information.
Opinion on financial statements
In our opinion the financial statements:
• give a true and fair view, in accordance with UK
Generally Accepted Accounting Practice, of the state
of affairs of the Association as at 31 March 2011
and of its surplus for the year then ended;
• have been properly prepared in accordance with
the Industrial and Provident Societies Acts 1965
to 2003 and the Industrial and Provident Societies
(Group Accounts) Regulations 1969, the Housing
and Regeneration Act 2008, and the Accounting
Requirements for Registered Social Landlords
General Determination 2006.
Matters on which we are required
to report by exception
We have nothing to report in respect of the following
matters where the Industrial and Provident Societies
Acts 1965 to 2003 require us to report to you if, in
our opinion:
• a satisfactory system of control over transactions
has not been maintained; or
• the Association has not kept proper accounting
records; or
• the financial statements are not in agreement with
the books of account; or
• we have not received all the information and
explanations we need for our audit.
Chris Wilson
Senior Statutory Auditor, KPMG
Chartered Accountants, Arlington Business Park, Theale, Reading RG7 4SD
Date: 21 July 2011
PAGE 22 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Olive House, Fulham, London
Financial
statements

Income and expenditure accounts for
the year ended 31 March 2011
Group
2011 2010
Note £’000 £’000
Turnover
Group 2 89,592 93,026
Share of joint venture 12 - -
89,592 93,026
Operating costs 2 (64,165) (75,434)
Operating surplus 2 25,427 17,592
Operating deficit attributable to joint venture (3) -
Group operating surplus 25,424 17,592
Surplus on disposal of fixed assets 4 2,424 3,905
Interest receivable and other income 5 312 334
Interest payable and similar charges 6 (11,234) (11,948)
Other finance cost 33 (456) (725)
Surplus on ordinary activities before tax 7 16,470 9,158
Tax on surplus on ordinary activities - -
Surplus on ordinary activities after tax 23 16,470 9,158
Association
2011 2010
Restated
Note £’000 £’000
Turnover 2 89,592 93,026
Operating costs 2 (64,164) (75,434)
Operating surplus 2 25,428 17,592
Surplus on disposal of fixed assets 4 2,424 3,905
Interest receivable and other income 5 312 334
Interest payable and similar charges 6 (11,234) (11,948)
Other finance cost 33 (456) (725)
Surplus on ordinary activities before tax 7 16,474 9,158
Tax on surplus on ordinary activities - -
Surplus on ordinary activities after tax 23 16,474 9,158
All amounts relate to continuing activities.
The accompanying notes form part of these financial statements.
PAGE 24 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Statement of total recognised surpluses and
deficits for the year ended 31 March 2011
Group
Association
2011 2010 2011 2010
Restated
Note £’000 £’000 £’000 £’000
Surplus for the financial year 16,470 9,158 16,474 9,158
Actuarial gains/(losses) on pension schemes 33 7,526 (12,068) 7,526 (12,068)
Unrealised surplus/(deficit) on revaluation
of long term investments
Other (losses)/gains recognised during
the year
25 22 (178) 22 (178)
- - - -
Total recognised surpluses/(deficits)
relating to the year
24,018 (3,088) 24,022 (3,088)
The accompanying notes form part of these financial statements.
report and financial statements for the year ended 31 March 2011 • PAGE 25

Balance sheets at 31 March 2011
Group
2011 2010
Note £’000 £’000
Tangible fixed assets
Housing properties – cost 10 667,025 636,051
Less: Social Housing Grant 10 (297,163) (284,607)
Less: Other public grants 10 (17,226) (14,707)
Less: Depreciation 10 (81,576) (72,716)
271,060 264,021
Other fixed assets 11 8,269 6,889
Investment in joint venture – gross assets 12 167 -
Investment in joint venture – gross liabilities 12 (24) -
279,472 270,910
Long term investments 13 5,350 5,320
Total fixed assets 284,822 276,230
Current assets
Properties for sale 14 2,491 4,858
Debtors 15 10,876 7,805
Investments 16 21,713 3,743
Cash at bank and in hand 17 701 1,609
35,781 18,015
Creditors: amounts falling due within one year 18 (25,461) (25,715)
Net current assets/(liabilities) 10,320 (7,700)
Total assets less current liabilities 295,142 268,530
Creditors: amounts falling due after more than one year 19/20 211,075 195,725
Provision for liabilities and charges 21 474 599
Pension liability 33 9,118 21,749
Capital and reserves
Share capital 22 - -
Revenue reserves 23 72,047 48,122
Restricted and designated reserves 24 2,018 1,947
Investment revaluation reserve 25 410 388
295,142 268,530
The accompanying notes form part of these financial statements.
These financial statements were approved by the Board on 21 July 2011 and signed on its behalf by:
Lord Richard Best OBE
Chair – Board Member
Robert Banner OBE
Board Member
Michael Fuller
Company Secretary
PAGE 26 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Association
2011 2010
Note £’000 £’000
Tangible fixed assets
Housing properties – cost 10 667,025 636,051
Less: Social Housing Grant 10 (297,163) (284,607)
Less: Other public grants 10 (17,226) (14,707)
Less: Depreciation 10 (81,576) (72,716)
271,060 264,021
Other fixed assets 11 8,269 6,889
279,329 270,910
Long term investments 13 5,350 5,320
Total fixed assets 284,679 276,230
Current assets
Properties for sale 14 2,491 4,858
Debtors 15 10,963 7,805
Investments 16 21,713 3,743
Cash at bank and in hand 17 701 1,609
35,868 18,015
Creditors: amounts falling due within one year 18 (25,401) (25,715)
Net current assets/(liabilities) 10,467 (7,700)
Total assets less current liabilities 295,146 268,530
Creditors: amounts falling due after more than one year 19/20 211,075 195,725
Provision for liabilities and charges 21 474 599
Pension liability 33 9,118 21,749
Capital and reserves
Share capital 22 - -
Revenue reserves 23 72,051 48,122
Restricted and designated reserves 24 2,018 1,947
Investment revaluation reserve 25 410 388
295,146 268,530
The accompanying notes form part of these financial statements.
These financial statements were approved by the Board on 21 July 2011 and signed on its behalf by:
Lord Richard Best OBE
Chair – Board Member
Robert Banner OBE
Board Member
Michael Fuller
Company Secretary
report and financial statements for the year ended 31 March 2011 • PAGE 27

Consolidated cash flow statement for
the year ended 31 March 2011
2011 2010
Note £’000 £’000
Net cash inflow from operating activities 26 29,417 31,226
Returns on investments and servicing of finance 26 (10,901) (12,721)
Taxation 26 - (10)
Capital expenditure and financial investment 26 (17,402) (4,828)
Cash inflow before use of liquid resources and financing 1,114 13,667
Management of liquid resources 26 (17,970) (1,316)
Financing 26 15,068 (13,568)
Decrease in cash in the year 26 (1,788) (1,217)
The accompanying notes form part of these financial statements.
PAGE 28 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Notes to the financial statements
1 Accounting policies
The financial statements have been prepared in
accordance with applicable accounting standards in
the United Kingdom, the Statement of Recommended
Practice: Accounting by Registered Social Landlords
Update 2008 (SORP) and the Housing Corporation’s
Accounting Requirements for Registered Social
Landlords General Determination 2006. The accounting
policies have been applied consistently, year on year.
A summary of specific policies is set out below.
Basis of accounting
The financial statements are prepared on the historic
cost and accruals basis of accounting, modified to
include the revaluation of long term investments.
Basis of consolidation
The consolidated financial statements incorporate the
financial statements of Hanover Housing Association
and its subsidiaries. The Association's financial
statements incorporate the activity of Hanover Housing
Association. Intra-Group transactions are eliminated
on consolidation. During the year, HPML and Hanover
in Hackney transferred engagements into the parent,
Hanover Housing Association. The transfers were
accounted for under FRS6 (Merger Accounting) on the
basis that the transfers reflect a Group reorganisation.
Under the rules of FRS6, prior year results for the
Association have been restated to include HPML and
Hanover in Hackney.
Turnover
Turnover is shown net of voids and value added tax
(VAT) and comprises income from LHOP (Leasehold
properties for older people) first tranche sales, rental
and service charge income receivable, Supporting
People income receivable, leaseholder management
fees, donations, fees and revenue based grants from
local authorities and the Homes and Communities
Agency. Void losses are only recognised where the
properties are available for letting.
Fixed assets
Fixed assets are stated at cost less depreciation. In the
case of housing properties, cost includes the incidental
costs of development - including interest capitalised up
to the date of practical completion of the scheme.
Housing properties in the course of construction are
stated at cost and are transferred to housing properties
when completed.
Scheme equipment is shown at cost less cumulative
depreciation.
Capitalisation of interest
Interest on borrowings to finance developments is
capitalised to the extent that it accrues in respect of
the period of development if it represents either:
a) interest on borrowings specifically financing the
development programme after deduction of interest on
Social Housing Grant (SHG) in advance, or
b) interest on borrowings of the entity as a whole after
the deduction of interest on SHG in advance to the
extent that they can be deemed to be financing the
development programme.
Other interest payable is charged to the income and
expenditure account in the year.
Capitalisation of development overheads
Development costs are capitalised where they are
directly attributable to bringing the properties into
working condition for their intended use. Directly
attributable costs are the labour costs of employees
that relate directly to the construction or acquisition
of property and the incremental costs that would have
been avoided only if individual properties had not been
constructed or acquired.
Works to existing properties
Works that result in an enhancement in the
economic benefits of housing properties i.e. an
increase in rental income, reduction in future
maintenance costs or significant extension of the life
of the property for a period of ten years or more, are
capitalised and depreciated in accordance with their
expected economic life.
All other expenditure on repairs incurred over the life
of a property to maintain the fabric of the original
asset is charged to the income and expenditure
account as incurred.
Depreciation
Freehold land is not depreciated.
Housing under construction is not depreciated.
The building structure, roofing and drainage systems
of housing properties are depreciated on a straight line
basis with an expected life of 50 years as at 31 March
1999 or practical completion, whichever is the later.
Properties held on long leases and under finance leases
are depreciated over the remaining period of the lease.
Using component costing principles, housing
properties are divided into components which are
depreciated at the following annual rates:
report and financial statements for the year ended 31 March 2011 • PAGE 29

1 Accounting policies
Building structure, roofing and drainage 2.0%
Roadways, footpaths, doors and windows,
electrical, heating and ventilation 3.3%
Kitchens and bathrooms 4.0%
Fencing and railings 5.0%
Flooring10.0%
Scheme equipment is depreciated at varying annual
rates as follows:
Lift cars 3.3%
Security, heating, aerials and
communal kitchen equipment 5.0%
Warden alarm, door entry and lift motors 6.6%
Other shared areas 10.0%
Cleaning equipment, cyber cafes,
gyms and cinemas 20.0%
Other estate equipment 25.0%
Other tangible assets are depreciated on a straight-line
basis on cost over the expected useful economic lives
of the assets at the following annual rates:
Office equipment and fittings 20.0%
Computer equipment 33.3%
Vehicles25.0%
Impairment
Impairments that result from a major reduction in
the service potential of the property are recognised
immediately in the income and expenditure account.
Sale of properties
The surplus or deficit arising on the disposal of
housing properties held as fixed assets is accounted
for on the face of the income and expenditure account.
The Group sells long leasehold interest in some units
to persons who occupy them at a lease premium equal
to 75% of open market value. Leasehold housing for
older people properties (LHOP) comprise two assets:
that to be disposed of in the sale, which is recorded as
a current asset and that retained by the Group which is
recorded as a fixed asset in the same manner as other
housing properties.
In accordance with the 2008 SORP, proceeds of sale
relating to first tranche sales are accounted for as
turnover in the income and expenditure account, with
the apportioned cost being shown within the operating
results as the cost of sale. SHG in respect of LHOP
properties is allocated against the fixed asset element
of the property and is treated as a deduction from
fixed assets.
Properties developed for sale – stock
Completed properties for outright sale are valued
at the lower of cost and net realisable value. Cost
comprises materials, direct labour and direct
development overheads. Net realisable value is based
on estimated sales prices after allowing for all further
costs of completion and disposal. Until sold, these
properties are held as current assets (stock).
Social Housing Grant and other grants
Social Housing Grant is a capital grant made to the
Group towards the cost of acquiring and/or building
housing for rent or sale. Under shared ownership
arrangements, social housing grant is paid by the
Homes and Communities Agency on a basis related to
cost but varying according to area and type of scheme.
Where developments have been financed wholly or
partly by grants, the costs of those developments have
been reduced by the amount of grant received.
Where Social Housing Grant is received for properties
in the course of construction and the amount received
is in excess of the costs of construction incurred
to date then the excess is shown as Social Housing
Grant received in advance on the balance sheet within
‘Creditors: amounts falling due within one year’.
Where grant is received on items treated as revenue
expenditure, it is treated as revenue grant and credited
to the income and expenditure account.
Grants are usually repayable unless formally abated,
waived or recycled. Therefore they may be repayable in
certain circumstances, primarily the sale of property.
This can be the case even where the grant has been
treated as a revenue grant for accounting purposes.
Long term investments
HHA is required to set aside a debt service reserve as
a condition of certain funding arrangements. These
reserves are invested in the name of Hanover and cannot
be redeemed until maturity of the underlying financial
instruments. These investments are shown at valuation.
Interest free loans
Some residents have provided interest free loans in
return for reduced accommodation charges. These
loans were originally made to Help the Aged, but the
monies are now held within Hanover following the
transfer of these properties. The loans are available to
be used as part of Hanover’s cash management and
are repayable on demand or at short notice.
Other long term creditors
Other long term creditors include the costs of
arranging long term funding and premiums received on
the issue of bonds. These amounts are amortised over
the period of the underlying financial instrument.
PAGE 30 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Leases
Rentals paid under operating leases are charged to the
income and expenditure account on the accruals basis.
The cost of assets held under finance leases is
included under ‘tangible assets’ and depreciation is
provided in accordance with the policy for the class
of asset concerned. The corresponding obligations
under these leases are shown as creditors. The
finance charge element of rentals is charged to
the income and expenditure account to produce a
constant periodic charge on the remaining balance
of the outstanding obligations.
Provisions
The Group only provides for contractual liabilities
which exist at the balance sheet date.
Retirement benefits
Pensions and related benefits are accounted for in
accordance with Financial Reporting Standard (FRS)17
‘Retirement Benefits’. The regular cost of providing
retirement pensions to employees during the year
and the full cost of providing amendments to
benefits in respect of past service are charged to the
operating surplus. A credit representing the expected
return on assets held by pension schemes is included
within ‘Other finance income’. This expected return
is based on the market value of those assets at the
start of the financial year. An interest charge is also
included in ‘Other finance income’. This interest cost is
the expected increase in the present value of scheme
liabilities during the period because the benefits are
one period closer to settlement. Differences between
actual and expected returns on assets are recognised
in the ‘Statement of total recognised surpluses and
deficits’, together with differences arising from
changes in assumptions. The difference between
the market value of the assets of a scheme and the
present value of the accrued pension liabilities is
shown as an asset/liability on the balance sheet.
Annual contributions relating to defined contribution
schemes and schemes eligible to be accounted for as
defined contribution are charged to the income and
expenditure account on an accruals basis.
Reserves
The Group has established restricted reserves
for specific purposes where their use is subject to
external restrictions.
Investment revaluation reserve
Surpluses arising from the revaluation of long term
investments are taken to the investment revaluation
reserve. Deficits arising on revaluation are charged
against this reserve to the extent that a previous
surplus on revaluation has occurred. Where there is
no such surplus or the deficit exceeds such a surplus
then the deficit, or balance thereof, is charged directly
to the income and expenditure account.
Taxation
The Association has charitable status and consequently
income and capital gains are generally exempt from
taxation.
Value added tax
A large proportion of the Group’s income comprises
rental income which is exempt from VAT and
VAT incurred in relation to this income cannot be
recovered. A partial exemption claim arises as the
Group charges VAT on some of its income and is able
to recover some of the VAT incurred on costs relating
to this taxable income. Expenditure is therefore shown
inclusive of VAT. Recoverable VAT arising from the
partially exempt activities is credited to the income and
expenditure account. The balance of VAT recoverable
or payable at the end of the year is included as a
current asset or liability.
Related parties
Advantage has been taken of the exemption allowed
by Financial Reporting Standard 8 ‘Related Party
Disclosures’ from disclosing transactions between
the Association and its wholly owned subsidiaries.
report and financial statements for the year ended 31 March 2011 • PAGE 31

2 Turnover, operating costs and operating surplus
Group
2011 2010
Social housing lettings (note 3)
Other social housing activities
Shared ownership first
tranche sales
Supporting People contract
income
Operating Operating
Operating Operating
Turnover costs surplus Turnover costs surplus
£’000 £’000 £’000 £’000 £’000 £’000
79,749 (55,725) 24,024 78,206 (64,506) 13,700
2,663 (1,893) 770 5,998 (4,834) 1,164
1,564 (1,504) 60 2,144 (1,529) 615
Other – social housing income 3,227 (3,068) 159 3,037 (2,377) 660
87,203 (62,190) 25,013 89,385 (73,246) 16,139
Non social housing activities
Management services 2,003 (1,747) 256 2,137 (729) 1,408
Outright sales 297 (227) 70 1,454 (959) 495
Other 89 (1) 88 50 (500) (450)
Total 89,592 (64,165) 25,427 93,026 (75,434) 17,592
Association
2011 2010
Social housing lettings (note 3)
Other social housing activities
Shared ownership first
tranche sales
Supporting People contract
income
Turnover
Operating
costs
Operating
surplus
Turnover
Operating
costs
Operating
surplus
£’000 £’000 £’000 £’000 £’000 £’000
79,749 (55,725) 24,024 78,206 (64,506) 13,700
2,663 (1,893) 770 5,998 (4,834) 1,164
1,564 (1,504) 60 2,144 (1,529) 615
Other – social housing income 3,227 (3,068) 159 3,037 (2,377) 660
87,203 (62,190) 25,013 89,385 (73,246) 16,139
Non social housing activities
Management services 2,003 (1,747) 256 2,137 (729) 1,408
Outright sales 297 (227) 70 1,454 (959) 495
Other 89 - 89 50 (500) (450)
Total 89,592 (64,164) 25,428 93,026 (75,434) 17,592
PAGE 32 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

3 Particulars of income and expenditure from social housing
Supported housing and housing
for older people
2011
Group
2010
2011
Association
2010
Restated
£’000
£’000
£’000
£’000
Income from social housing lettings
Rent receivable net of identifiable service charges
and loss from voids
53,747 52,995 53,747 52,995
Service charges receivable 22,069 21,069 22,069 21,069
Charge for support services 2,569 2,796 2,569 2,796
Care fees receivable 743 687 743 687
Net rental income and fees receivable 79,128 77,547 79,128 77,547
Revenue grants from local authorities
and other agencies
124 77 124 77
Other property and service income 497 582 497 582
Total income from social housing lettings 79,749 78,206 79,749 78,206
Expenditure on social housing lettings
Management (18,085) (17,228) (18,085) (17,228)
Past service gain on pension funds 5,714 - 5,714 -
Services (21,259) (22,274) (21,259) (22,274)
Care and support (2,339) (3,268) (2,339) (3,268)
Rent losses from bad debts (46) (273) (46) (273)
Routine maintenance and servicing (5,584) (7,302) (5,584) (7,302)
Planned repairs (3,384) (3,423) (3,384) (3,423)
Depreciation of housing properties (10,696) (10,581) (10,696) (10,581)
Impairment of housing properties - - - -
Other costs (46) (157) (46) (157)
Total expenditure on social housing lettings (55,725) (64,506) (55,725) (64,506)
Operating surplus from social housing lettings 24,024 13,700 24,024 13,700
Void losses (1,536) (2,325) (1,536) (2,325)
The majority of the Group’s social housing income is derived from supported housing and housing
for older people; income from other categories of social housing is not considered material.
report and financial statements for the year ended 31 March 2011 • PAGE 33

4 Surplus/(deficit) on disposal of fixed assets
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
Proceeds of sale 7,111 11,413 7,111 11,413
Less: net book value from fixed assets (4,561) (7,365) (4,561) (7,365)
Associated costs (126) (143) (126) (143)
Surplus on disposal of fixed assets 2,424 3,905 2,424 3,905
5 Interest receivable and other income
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
Interest receivable from banks, building
societies and other investments
312 334 312 334
6 Interest payable and similar charges
Interest payable on bank loans, overdrafts
and other loans
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
12,036 12,011 12,036 12,011
Less: interest capitalised in housing properties 1 (802) (63) (802) (63)
11,234 11,948 11,234 11,948
1
The rate used to capitalise interest in respect of housing properties is 6.5% (2010: 6.5%).
PAGE 34 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

7 Surplus on ordinary activities before tax
Surplus on ordinary activities before
tax is stated after charging:
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
Depreciation 12,194 12,284 12,194 12,284
Operating leases of offices 689 748 689 748
Operating leases of cars and equipment 274 280 274 280
Auditors’ remuneration:
- in their capacity as auditors 92 89 92 89
- in respect of other services 14 44 14 44
The auditors’ remuneration in respect of other services excludes £49,368 (2010: £48,709)
directly recharged to residents for provision of homeownership service charge accounts
certifications.
8 Directors’ emoluments
The directors are defined as the Board, including the Chief Executive, together with the other
members of the Strategic Management Team. The costs of all benefits in kind received are
included in the table below.
The emoluments of the executive directors were as follows:
2011 2010
£’000 £’000
Emoluments (including pension contributions and benefits in kind) 733 925
Emoluments paid to the highest paid director (the Chief Executive) for service paid
through the payroll (including any benefits in kind, excluding pension contribution) 181 181
The Chief Executive is a member of the Scottish Equitable Stakeholder pension plan. The
Association made contributions in respect of the membership of the Chief Executive of £20,541
during the year. The Chief Executive received no emoluments in respect of Board duties.
The emoluments of the non-executive Board directors were £117,410 (2010: £118,824).
Individual non-executive Board members, as detailed on page 12, receive £11,000 per
annum. The Group Chair is entitled to remuneration of £20,000 which he has chosen to
donate to charity.
report and financial statements for the year ended 31 March 2011 • PAGE 35

9 Employee information
The average number of employees expressed as full time equivalents (including the Chief
Executive) during the year was:
Group
2011 2010
Restated
Association
2011 2010
Restated
No. No. No. No.
Office staff 402 401 402 401
Estate staff 393 376 393 376
Estate staff directly charged to homeowners (101) (100) (101) (100)
694 677 694 677
Staff costs for the above persons: £’000 £’000 £’000 £’000
Wages and salaries 19,762 20,341 19,762 20,341
Wages and salaries directly charged to homeowners (1,505) (1,491) (1,505) (1,491)
Social security costs 1,784 1,779 1,784 1,779
Social security costs charged directly to
homeowners
(122) (103) (122) (103)
Pension costs (note 33) 1,319 1,429 1,319 1,429
Pension costs charged directly to homeowners (49) (51) (49) (51)
21,189 21,904 21,189 21,904
PAGE 36 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

10 Tangible fixed assets – housing properties
Group
Completed
housing
properties
Completed
LHOP 1 housing
properties
Housing
properties in
the course of
construction
Total
£’000 £’000 £’000 £’000
Cost
At 1 April 2010 603,347 8,266 24,438 636,051
Additions 8,433 - 28,079 36,512
Schemes completed 40,278 - (40,278) -
Schemes converted stock to rent 698 - - 698
Reclassification 575 (575) - -
Disposals (5,643) (593) - (6,236)
At 31 March 2011 647,688 7,098 12,239 667,025
Social Housing Grant
At 1 April 2010 (257,866) (5,848) (20,893) (284,607)
Receivable for year - - (14,928) (14,928)
Schemes completed (27,790) - 27,790 -
Disposals 2,351 21 - 2,372
At 31 March 2011 (283,305) (5,827) (8,031) (297,163)
Other public grants
At 1 April 2010 (12,478) (305) (1,924) (14,707)
Receivable for year (88) - (2,431) (2,519)
Schemes completed (3,775) - 3,775 -
At 31 March 2011 (16,341) (305) (580) (17,226)
Depreciation
At 1 April 2010 (73,387) (91) 762 (72,716)
Charge for year (10,487) (209) - (10,696)
Disposals 1,836 - - 1,836
At 31 March 2011 (82,038) (300) 762 (81,576)
Net book value
At 31 March 2011 266,004 666 4,390 271,060
At 1 April 2010 259,616 2,022 2,383 264,021
*Leasehold housing for older people
report and financial statements for the year ended 31 March 2011 • PAGE 37

10 Tangible fixed assets – housing properties
Association
Completed
housing
properties
Completed
LHOP 1 housing
properties
Housing
properties in
the course of
construction
Total
£’000 £’000 £’000 £’000
Cost
At 1 April 2010 - restated 603,347 8,266 24,438 636,051
Additions 8,433 - 28,079 36,512
Schemes completed 40,278 - (40,278) -
Schemes converted stock to rent 698 - - 698
Reclassification 575 (575) - -
Disposals (5,643) (593) - (6,236)
At 31 March 2011 647,688 7,098 12,239 667,025
Social Housing Grant
At 1 April 2010 – restated (257,866) (5,848) (20,893) (284,607)
Receivable for year - - (14,928) (14,928)
Schemes completed (27,790) - 27,790 -
Disposals 2,351 21 - 2,372
At 31 March 2011 (283,305) (5,827) (8,031) (297,163)
Other public grants
At 1 April 2010 – restated (12,478) (305) (1,924) (14,707)
Receivable for year (88) - (2,431) (2,519)
Schemes completed (3,775) - 3,775 -
At 31 March 2011 (16,341) (305) (580) (17,226)
Depreciation
At 1 April 2010 – restated (73,387) (91) 762 (72,716)
Charge for year (10,487) (209) - (10,696)
Disposals 1,836 - - 1,836
At 31 March 2011 (82,038) (300) 762 (81,576)
Net book value
At 31 March 2011 266,004 666 4,390 271,060
At 1 April 2010 – restated 259,616 2,022 2,383 264,021
*Leasehold housing for older people
PAGE 38 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Completed housing and other
properties comprise:
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
Freeholds 244,577 238,386 244,577 238,386
Long leaseholds 9,348 10,163 9,348 10,163
Short leaseholds 17,135 15,472 17,135 15,472
271,060 264,021 271,060 264,021
The total net book value, after deducting both accumulated depreciation and Social Housing
Grant, of housing properties held under finance leases is £4,639,033 (2010: £4,240,456).
Depreciation charged during the year on these assets was £161,765 (2010: £29,193).
The total amount of Social Housing Grant received or receivable at the balance sheet date for
both the Group and the Association was £297,163,000 (2010: £284,607,000).
11 Other fixed assets
Group
Scheme
equipment
Leasehold/
freehold office
premises
Plant, machinery,
fixtures and
vehicles
Total
£’000 £’000 £’000 £’000
Cost
At 1 April 2010 13,963 2,122 4,680 20,765
Additions 2,941 35 333 3,309
Reclassification - (9) 9 -
Disposals (3,753) (5) (65) (3,823)
At 31 March 2011 13,151 2,143 4,957 20,251
Depreciation
At 1 April 2010 (9,692) (605) (3,579) (13,876)
Charge for year (929) (166) (403) (1,498)
On disposals 3,346 - 46 3,392
At 31 March 2011 (7,275) (771) (3,936) (11,982)
Net book value
At 31 March 2011 5,876 1,372 1,021 8,269
At 1 April 2010 4,271 1,517 1,101 6,889
report and financial statements for the year ended 31 March 2011 • PAGE 39

11 Other fixed assets
Association
Scheme
equipment
Leasehold/
freehold office
premises
Plant, machinery,
fixtures and
vehicles
Total
£’000 £’000 £’000 £’000
Cost
At 1 April 2010
Restated
13,963 2,122 4,680 20,765
Additions 2,941 35 333 3,309
Reclassification - (9) 9 -
Disposals (3,753) (5) (65) (3,823)
At 31 March 2010 13,151 2,143 4,957 20,251
Depreciation
At 1 April 2010
Restated
(9,692) (605) (3,579) (13,876)
Charge for year (929) (166) (403) (1,498)
Disposals 3,346 - 46 3,392
At 31 March 2011 (7,275) (771) (3,936) (11,982)
Net book value
At 31 March 2011 5,876 1,372 1,021 8,269
At 31 March 2010
Restated
4,271 1,517 1,101 6,889
Work has been carried out to reconcile historic scheme equipment asset balances held on our
fixed assets register. This resulted in significant adjustments to achieve a clean position going
forward. Included within disposals, the total cost adjustment made to remove obsolete entries
was £2,672k and the depreciation adjustment was £2,666k.
12 Investment in joint venture
Hanover Bloc LLP
2011 2010
£’000 £’000
Share of turnover - -
Share of fixed assets 75 -
Share of current assets 92 -
Share of liabilities (24) -
Share of net assets 143 -
Hanover Housing Developments Ltd holds a 50% share in a joint venture with Bloc Limited,
established to develop properties for sale on the open market.
PAGE 40 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

13 Long term investments
Group
Association
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Treasury Stock
8.75% Treasury Stock 2017 671 673 671 673
8% Treasury Stock 2021 1,447 1,433 1,447 1,433
Bonds
European Investment Bank 220 225 220 225
North British Housing Association 243 236 243 236
Northern Counties Housing Association 258 250 258 250
Total of listed investments 2,839 2,817 2,839 2,817
Bank investments
Dexia 2,511 2,503 2,511 2,503
Total investments 5,350 5,320 5,350 5,320
Original cost of listed investments 2,429 2,429 2,429 2,429
These investments represent the Debt Service Reserves for funding received from Funding for
Homes Limited, Haven Funding Bond and Dexia Bank. The valuations have been supplied by
the funding organisations.
The original cost is the cost at which the investment in bonds and Treasury stock were acquired.
Analysis of movement of listed investments
2011 2010
£’000 £’000
Balance at 1 April 2,817 2,995
Net gain/(loss) on revaluation 22 (178)
Value at 31 March 2,839 2,817
report and financial statements for the year ended 31 March 2011 • PAGE 41

14 Properties for sale
Group
Association
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Completed properties held for outright sale 1,451 2,397 1,451 2,397
Completed properties held for shared ownership 1,040 2,461 1,040 2,461
2,491 4,858 2,491 4,858
15 Debtors
Amounts receivable within one year:
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
Rent and service charge arrears 1,446 1,951 1,446 1,951
Less: bad debt provision (437) (762) (437) (762)
1,009 1,189 1,009 1,189
Deferred service charge debtors 1,489 1,023 1,489 1,023
Social Housing Grant receivable 4,700 - 4,700 -
Amounts owed by group undertakings - - 87 -
Other debtors, prepayments and accrued income 3,042 4,196 3,042 4,196
Amounts receivable after one year:
10,240 6,408 10,327 6,408
Deferred service charge debtors 636 1,397 636 1,397
Total debtors 10,876 7,805 10,963 7,805
PAGE 42 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

16 Current asset investments
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
Short term deposits 21,713 3,743 21,713 3,743
17 Cash at bank and in hand
None of the Group’s cash balances are charged as security to lenders.
18 Creditors: amounts falling due within one year
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
Housing loans 1,700 1,883 1,700 1,883
Finance leases 98 98 98 98
Bank overdrafts 2,429 1,549 2,429 1,549
Trade creditors 451 1,659 451 1,659
Amounts owed to group undertakings - - - -
Interest free loans 1,810 2,010 1,810 2,010
Other creditors including taxation 5,029 4,155 5,029 4,155
Accruals and deferred income 13,944 14,361 13,884 14,361
Total creditors falling due within one year 25,461 25,715 25,401 25,715
report and financial statements for the year ended 31 March 2011 • PAGE 43

19 Creditors: amounts falling due after more than one year
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
Housing loans 202,452 187,103 202,452 187,103
Tenancy nominations 13 13 13 13
Finance leases 7,158 7,256 7,158 7,256
209,623 194,372 209,623 194,372
Other long term creditors 1,431 1,353 1,431 1,353
Total creditors falling due after more than
one year
211,054 195,725 211,054 195,725
The Association has agreement for the sale and leaseback of a number of housing properties
and in accordance with Financial Reporting Standard (FRS) 5, ‘Reporting the Substance of
Transactions’, the proceeds have been recognised as secured loans. The finance lease terms are
for 30 years and 120 years with interest being accrued on the balance of the loan outstanding.
Housing loans from banks, building societies, local authorities and others, including amounts
due within one year total £204,152,000 (2010: £188,986,333) secured by charges on housing
properties and land. The loans are at varying rates of interest and repayable in instalments
as follows:
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
Within one year 1,700 1,883 1,700 1,883
Between one and two years 1,370 4,405 1,370 4,405
Between two and five years 5,767 10,258 5,767 10,258
In five years or more 195,315 172,440 195,315 172,440
204,152 188,986 204,152 188,986
At the year end, the Group had loan facilities arranged but undrawn of £48.5m and overdraft
facilities of £1.5m arranged (2010: £76.8m and £1.5m). These are provided to ensure liquidity
and the flexibility to undertake effective treasury management.
PAGE 44 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Amounts due under obligations in respect of finance leases are as follows:
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
Between one and two years 119 119 119 119
Between two and five years 311 311 311 311
In five years or more 6,728 6,826 6,728 6,826
7,158 7,256 7,158 7,256
20 Recycled capital grant fund
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
At 1 April - 373 - 373
Grant to be recycled 21 - 21 -
Grants recycled - (332) - (332)
21 41 21 41
Interest transferred - (41) - (41)
At 31 March 21 - 21 -
21 Provision for liabilities and charges
Group
Association
2011 2010 2011 2010
Restated
£’000 £’000 £’000 £’000
At 1 April 599 640 599 640
Provided in year 15 240 15 240
Utilised in year (140) (281) (140) (281)
At 31 March 474 599 474 599
Provision is made for staff redundancies, the early termination of leased office accommodation
and dilapidations.
report and financial statements for the year ended 31 March 2011 • PAGE 45

22 Share capital
2011 2010
£ £
Each member of Hanover Housing Association holds one share of £1
Allotted, issued and fully paid 45 64
The share capital of the Association consists of shares with a nominal value of £1 each and
which carry no rights to dividends or other income. Shares in issue are not capable of being
repaid or transferred. The shares provide members with the right to vote at general meetings.
When a shareholder ceases to be a member, that person’s share is cancelled and the amount
paid up thereon becomes the property of the Association. Therefore all shareholdings relate to
non-equity interests. There are no equity interests in the Association.
23 Revenue reserves
Group
Association
£’000 £’000
At 1 April 2010 48,122 47,797
On transfers of engagements - 325
Surplus on ordinary activities after tax 16,470 16,474
Actuarial gains on pension schemes 7,526 7,526
Transfer to restricted reserves (71) (71)
At 31 March 2011 72,047 72,051
PAGE 46 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

24 Restricted reserves
Group
Restricted
reserves
Renewals
Total
£’000 £’000 £’000
At 1 April 2010 1,945 2 1,947
Transfer from revenue reserves 71 - 71
At 31 March 2011 2,016 2 2,018
Association
Restricted
reserves
Renewals
Total
£’000 £’000 £’000
At 1 April 2010 – restated 1,945 2 1,947
Transfer from revenue reserves 71 -
71
At 31 March 2011 2,016 2 2,018
Restricted reserves are held in relation to a range of estates and include legacies and donations.
25 Investment revaluation reserve
Group Association
£’000 £’000
At 1 April 2010 388 388
Increase in long term investments 22 22
At 31 March 2011 410 410
The investment revaluation reserve represents the increase in value of long term investments
over cost.
report and financial statements for the year ended 31 March 2011 • PAGE 47

26 Notes to the consolidated cash flow statement
Reconciliation of operating surplus to net
cash inflow from operating activities
2011 2010
£’000 £’000
Operating surplus 25,427 17,592
Past service gains on pension funds (5,714) -
Depreciation and impairment 12,194 12,284
Change in stock 1,669 5,213
Change in debtors 1,595 785
Change in creditors (5,782) (4,838)
Change in provisions 28 190
Net cash inflow from operating activities 29,417 31,226
Analysis of cash flow headings:
Returns on investments and servicing of finance 2011 2010
£’000 £’000
Interest received 338 1,494
Interest paid (11,239) (14,215)
Net cash outflow from returns on investments
and servicing of finance
(10,901) (12,721)
Taxation 2011 2010
£’000 £’000
UK Corporation tax paid - (10)
Capital expenditure and financial investment 2011 2010
Cash paid for purchase and construction of
housing properties
£’000 £’000
(31,637) (32,175)
Purchase of other fixed assets (3,318) (3,159)
Social Housing Grant received 10,228 18,715
Other public grants received 2,519 545
Proceeds from sale of fixed assets 4,892 11,246
Investment in joint venture (86) -
Net cash outflow from capital expenditure
and financial investment
(17,402) (4,828)
PAGE 48 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Management of liquid resources 2011 2010
£’000 £’000
Increase in cash on short term deposit (17,970) (1,316)
Financing 2011 2010
£’000 £’000
Repayment of loans (9,147) (13,488)
New secured loans 24,313 -
Capital element of finance lease rental payments (98) (80)
Net cash inflow/(outflow) from financing 15,068 (13,568)
Reconciliation of net cash inflow to
movement in net debt
2011 2010
£’000 £’000
Decrease in cash in the year (1,788) (1,217)
Cash flow from debt (increase)/repayment (15,068) 13,568
Cash outflow from management of
liquid resources
17,970 1,316
Change in net debt resulting from cash flows 1,114 13,667
Net debt at 1 April (192,537) (206,204)
Net debt at 31 March (191,423) (192,537)
Analysis of changes in net debt
At 1 April
2010
Cash flow
Non cash
flow
At 31 March
2011
£’000 £’000 £’000 £’000
Cash at bank and in hand 1,609 (908) - 701
Bank overdraft (1,549) (880) - (2,429)
60 (1,788) - (1,728)
Debt due after one year (187,103) (15,349) - (202,452)
Debt due within one year (1,883) 183 - (1,700)
Finance leases (7,354) 98 - (7,256)
Other liquid resources 3,743 17,970 - 21,713
(192,537) 1,114 - (191,423)
report and financial statements for the year ended 31 March 2011 • PAGE 49

27 Capital commitments
Group
Association
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Capital expenditure that has been
contracted for but has not been provided
for in the financial statements
Capital expenditure that has been authorised
by the Board but not yet contracted for
18,427 24,784 18,427 24,784
15,141 39,097 15,141 39,097
The capital expenditure will be financed by a mixture of capital grants, proceeds from
property sales and existing loan facilities.
28 Commitments under operating leases
The Group and Association had annual commitments under non-cancellable operating leases
as follows:
Group
Land and
buildings
Other
Land and
buildings
Other
2011 2011 2010 2010
£’000 £’000 £’000 £’000
Leases expiring within one year 25 141 - 44
Leases expiring between one and five years 45 133 45 157
Leases expiring after five years 619 - 513 -
Association – restated for 2010
689 274 558 201
Leases expiring within one year 25 141 - 44
Leases expiring between one and five years 45 133 45 157
Leases expiring after five years 619 - 513 -
689 274 558 201
PAGE 50 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

29 Subsidiary undertakings
The following comprise the subsidiary undertakings for incorporation into the consolidated
accounts for the Group in accordance with the Industrial and Provident Societies Acts and
Financial Reporting Standards:
Organisation Status Principal activity Basis of control by Hanover
Housing Association
Hanover Housing
Limited
Industrial &
Provident Society
Dormant
The Board of HHA appoints
the majority of the Committee
of Management
Hanover Housing
Developments Ltd
Private company
limited by shares
Redevelopment of land owned by
the association and holder of the
Group’s investment in the joint
venture Hanover Bloc in
partnership with Bloc Ltd.
HHDL was incorporated on 24 March
2009 as a wholly-owned subsidiary
of the Association. The Board of
HHA appoints the Board of Directors
and HHA is the sole shareholder.
30 Associated organisations
HHA acts as the corporate trustee for the following Almshouse Trusts:
Alfred Stubbs Trust, Almshouse Charity of Elizabeth Smith, Collins Memorial Trust, Jane
Cameron's Old People's Charity, The Margaret Jane Ashley Almshouse Charity, The Flood Charity,
William Paul Housing Trust.
HHA has stated its future support for any of the above with regards to short term, working
capital support.
31 Contingent liabilities
The Association has a performance guarantee with Barclays Bank for £10,779 (2010: £10,779).
A Thames Water guarantee for £5,000 (2010: £5,000) was cancelled during the year.
32 Related party transactions
It is confirmed and disclosed, in accordance with Financial Reporting Standard (FRS) 8 ‘Related
Party Disclosures’, that resident members of the Board occupy properties on normal terms.
report and financial statements for the year ended 31 March 2011 • PAGE 51

33 Pension obligations
The pension liability in the consolidated balance sheet comprises liabilities in respect of
two schemes:
2011 2010
£000 £000
Surrey County Council Pension Fund (8,792) (18,318)
London Borough of Hackney Pension Fund (326) (3,431)
Total pension liability (9,118) (21,749)
The amount credited to operating surpluses in respect of two schemes:
2011 2010
£000 £000
Surrey County Council Pension Fund 4,909 483
London Borough of Hackney Pension Fund 652 11
Total amount credited to operating surpluses 5,561 494
The amount charged to other financing income in respect of two schemes:
2011 2010
£000 £000
Surrey County Council Pension Fund (363) (620)
London Borough of Hackney Pension Fund (93) (105)
Total amount charged to other financing income (456) (725)
Surrey County Council Pension Fund
Employees of Hanover Housing Association who joined prior to 1 July 2003 were admitted
to the Surrey County Council Pension Fund (“the Fund”), this is a defined benefit scheme
administered by Surrey County Council under the regulations governing the Local
Government Pension Scheme (“LGPS”).
The pension costs of this arrangement are assessed in accordance with the advice of an
independent qualified actuary using the projected unit method.
The main financial assumptions used in the
valuation of the pension liabilities were:
31 March 2011 31 March 2010
% per annum % per annum
Pension increase rate (CPI 2011; RPI 2010) 2.8 3.8
Increases in salaries 5.1 5.3
Expected return on assets 6.9 7.2
Discount rate 5.5 5.5
PAGE 52 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Breakdown of expected return on assets
by category
31 March 2011 31 March 2010
% per annum % per annum
Equities 7.5 7.8
Bonds 4.9 5.0
Property 5.5 5.8
Cash 4.6 4.8
Mortality
Life expectancy is based on the PFA92 and PMA92 tables projected to calendar year 2033 for
non-pensioners and 2017 for pensioners. Based on these assumptions the average future life
expectancies at age 65 are summarised below:
Males
Females
Current pensioners 21.9 years 24.0 years
Future pensioners 23.9 years 25.9 years
Net pension liability
2011 2010
£'000
£'000
Fair value of above assets related to HHA 26,477 25,699
Value placed on liabilities related to HHA (35,269) (44,017)
Deficit related to HHA at 31 March (8,792) (18,318)
Analysis of changes in scheme assets
and liabilities over the year:
Reconciliation of defined benefit obligation
Year ended
31 March 2011
Year ended
31 March 2010
£’000 £’000
Opening defined benefit obligation 44,017 25,776
Current service cost 704 423
Interest cost 2,213 1,781
Members' contributions 216 256
Actuarial (gains)/losses (6,085) 16,387
Past service gains 1 (4,890) -
Losses on curtailments 29 -
Estimated unfunded benefits paid (8) (10)
Estimated benefits paid (927) (596)
Closing defined benefit obligation 35,269 44,017
1
A one-off past service credit appears in the 2010/11 income and expenditure accounts as a result of basing pension
increases on CPI rather than RPI following the Chancellor’s Emergency Budget announcement in June 2010.
report and financial statements for the year ended 31 March 2011 • PAGE 53

33 Pension obligations > Surrey County Council Pension Fund
Reconciliation of fair value of employer assets
Year ended
31 March 2011
Year ended
31 March 2010
£’000 £’000
Opening fair value of employer assets 25,699 17,590
Expected return on assets 1,850 1,161
Employer contributions 744 896
Members' contributions 216 256
Contributions in respect of unfunded benefits 8 10
Actuarial losses (1,105) (6,392)
Unfunded benefits paid (8) (10)
Benefits paid (927) (596)
Closing fair value of employer assets 26,477 25,699
Analysis of amount charged to
operating surplus
2011 2010
£’000 £’000
Employer service cost 704 423
Past service gain (4,890) -
Curtailment cost 29 -
Total operating charge (4,157) 423
Analysis of amount charged to other
financing income/(expense)
2011 2010
£’000 £’000
Expected return on employer assets 1,850 1,161
Interest on pension scheme liabilities (2,213) (1,781)
Net charge (363) (620)
Analysis of amount recognised in
statement of total recognised surpluses
2011 2010
£000 £000
Actual return less expected return on pension
scheme assets
(1,105) 6,392
Experience gains and losses on liabilities 6,085 (16,387)
Actuarial gains/(losses) on assets and liabilities 4,980 (9,995)
PAGE 54 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

History of experience gains and losses
in the year
31 March 2011 31 March 2010
£’000 £’000
Difference between expected and actual
return on scheme assets:
Amount (1,105) 6,392
Percentage of scheme assets 4.2% (24.9%)
Experience gains and losses on pension liabilities:
Amount 6,085 (16,387)
Percentage of the present value of pension liabilities (17.3%) (37.2%)
Amount recognised in statement of total
recognised gains and losses:
Amount 4,980 (9,995)
Percentage of the present value of pension liabilities (14.1%) 22.7%
Stakeholder Pension Schemes
Hanover Housing Association closed its defined
benefit pension scheme to new employees on 30
June 2003. Employees joining from 1 July 2003 had
the option of being admitted to a new contributory
defined contributions scheme with Scottish Equitable
Stakeholder Pension Scheme and all employees in
the Standard Life Stakeholder Pension Scheme were
transferred to Scottish Equitable. The scheme provides
benefits directly determined by the value of the
contributions paid in respect of each member.
Employer’s contributions to Scottish Equitable during
the year amounted to £569k (2010: £457k).
No contributions in respect of these schemes were
outstanding or prepaid at the balance sheet date.
The Social Housing Pension Scheme
(SHPS)
The Association participates in SHPS, a multi-employer
defined benefit scheme. The scheme is funded and is
contracted out of the state pension scheme.
It is not possible in the normal course of events to
identify on a consistent and reasonable basis the
share of underlying assets and liabilities belonging
to individual participating employers. This is because
the Scheme is a multi-employer scheme where
the Scheme assets are co-mingled for investment
purposes and benefits are paid from total Scheme
assets. Accordingly, due to the nature of the Scheme,
the accounting charge for the period under FRS 17
represents the employer contribution payable. The
employer contributions over the period were £7.6k.
The Trustee commissions an actuarial valuation of
the Scheme every three years. The main purpose of
the valuation is to determine the financial position
of the Scheme in order to address the level of future
contributions required so that the Scheme can meet its
pension obligations as they fall due.
The last formal valuation of the Scheme was performed
as at 30 September 2008 by a professionally qualified
actuary using the projected unit method. The market
value of the Scheme’s assets at the valuation date was
£1,527m.
The valuation revealed a shortfall of assets compared
with the value of liabilities of £663m, equivalent to a
past service funding level of 69.7%.
The Scheme Actuary has prepared an Actuarial Report
that provides an approximate update on the funding
position of the Scheme as at 30 September 2009. Such
a report is required by legislation for years in which a full
actuarial valuation is not carried out. The funding update
revealed an increase in the assets of the Scheme to
£1,723m and indicated an increase in the shortfall of
assets compared to liabilities to approximately £783m,
equivalent to a past service funding level of 70.0%
The next triennial formal valuation of the Scheme
is due as at 30 September 2011. The results of the
valuation will be available in the autumn of 2012.
The Pensions Trust SCVO Final
Salary Pension Scheme
The SCVO Pension Scheme was closed on 31 March
2010. The Pension Trust, who administered the scheme
decided that proposed increases to contribution levels
would not be sustainable for participating organizations
and therefore took the decision to close the scheme.
However, Hanover Housing Association still has to make
payments to service the debt and to ensure sufficient
provisions for the retained benefits of pensioners.
The charge for the year April 2010 to March 2011 is
£22,477. Members of the scheme have transferred to
the Hanover Group Pension Plan and have retained their
previous employer and employee contribution levels.
report and financial statements for the year ended 31 March 2011 • PAGE 55

33 Pension obligations
London Borough of Hackney Pension Fund
Employees of Hanover in Hackney Limited (HiH), now transferred to Hanover Housing
Association, have been admitted to the London Borough of Hackney Pension Fund ("the Fund");
this is a defined benefit scheme, administered by the London Borough of Hackney under the
regulations governing the Local Government Pension Scheme (LGPS).
The pension costs of this arrangement are assessed in accordance with the advice of an
independent qualified actuary using the projected unit method.
The main financial assumptions used in the
valuation of the pension liabilities were:
31 March 2011 31 March 2010
% per annum % per annum
Pension Increase rate (CPI 2011; RPI 2010) 2.8 3.8
Increases in salaries 5.1 5.3
Expected return on assets 6.7 6.9
Discount rate 5.5 5.5
Mortality
Life expectancy is based on the PFA92 and PMA92 tables projected to calendar year 2033 for
non-pensioners and 2017 for pensioners. Based on these assumptions the average future life
expectancies at age 65 are summarised below:
Males
Females
Current pensioners 20.9 years 23.5 years
Future pensioners 23.0 years 25.4 years
Net pension liability
2011 2010
£’000 £’000
Fair value of above assets related to HiH 5,412 4,758
Value placed on liabilities related to HiH (5,738) (8,189)
Deficit related to HHA at 31 March (326) (3,431)
PAGE 56 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

Analysis of changes in scheme assets
and liabilities over the year:
Reconciliation of defined benefit obligation
Year ended
31 March 2011
Year ended
31 March 2010
£’000 £’000
Opening defined benefit obligation 8,189 4,911
Current service cost 26 22
Interest cost 416 336
Members’ contributions 7 10
Actuarial losses/(gains) (2,052) 3,025
Past service gains 1 (824) -
Losses on curtailments 167 -
Estimated benefits paid (191) (115)
Closing defined benefit obligation 5,738 8,189
1
A one-off past service credit appears in the 2010/11 income and expenditure accounts as a result of basing pension
increases on CPI rather than RPI following the Chancellor’s Emergency Budget announcement in June 2010.
Reconciliation of fair value of employer assets
Year ended
31 March 2011
Year ended
31 March 2010
£’000 £’000
Opening fair value of employer assets 4,758 3,647
Expected return on assets 323 231
Employer contributions 21 33
Members' contributions 7 10
Actuarial gains/(losses) 494 952
Benefits paid (191) (115)
Closing fair value of employer assets 5,412 4,758
As part of the undertaking between HiH and the London Borough of Hackney, the London
Borough of Hackney has agreed to indemnify HiH in respect of any shortfall in the pension
fund, at the date of transfer. The indemnity provided to HiH transferred to HHA when HiH
transferred its engagements on 30 September 2010.
Analysis of amount charged to
operating surplus
2011 2010
£’000 £’000
Employer service cost 26 22
Past service gain (824) -
Curtailment cost 167 -
Total operating (surplus)/charge (631) 22
report and financial statements for the year ended 31 March 2011 • PAGE 57

33 Pension obligations > London Borough of Hackney Pension Fund
Analysis of amount charged to other
financing income
2011 2010
£’000 £’000
Expected return on employer assets 323 231
Interest on pension scheme liabilities (416) (336)
Net return (93) (105)
Analysis of amount recognised in statement
of total recognised surpluses and deficits
2011 2010
£000 £000
Actual return less expected return on pension
scheme assets
494 952
Experience gains and losses on liabilities 2,052 (3,025)
Actuarial losses on assets and liabilities 2,546 (2,073)
History of experience gains and losses
in the year:
31 March 2011 31 March 2010
£’000 £’000
Difference between expected and actual
return on scheme assets:
Amount 494 952
Percentage of scheme assets 9.1% 20.0%
Experience gains and losses on pension liabilities
Amount (2,052) (3,025)
Percentage of the present value of pension liabilities (35.8%) (36.9%)
Amount recognised in statement of total
recognised gains and losses:
Amount 2,546 (2,073)
Percentage of the present value of pension liabilities (44.4%) (25.3%)
PAGE 58 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES

34 Housing stock in management
2011 2011 2010 2010
Managed by
the Group
Managed by
non-Group body
Managed by
the Group
Managed by
non-Group body
Owned by the Group:
Rented retirement housing 10,305 20 10,386 20
Rented Extra Care housing 2,392 54 2,164 59
Total 12,697 74 12,550 79
General needs housing 143 - 206 -
LHOP 1 336 - 336 -
Other leasehold 4,461 - 4,457 -
Other rented 6 2 - 2
Total managed and owned
by the Group
17,643 76 17,549 81
Not owned by the Group:
Rented – owned by third party 298 - 294 -
Rented – owned by associated
259 - 259 -
organisations 2
Total rented accommodation
not owned by the Group
Leased accommodation not
owned by the Group
Total managed but not
owned by the Group
Total accommodation in
management
557 - 553 -
623 - 654 -
1,180 - 1,207 -
18,823 76 18,756 81
1
Leasehold housing for older people
2
Associated organisations consist of a number of almshouse trusts of which HHA is Corporate Trustee.
report and financial statements for the year ended 31 March 2011 • PAGE 59

Office addresses
Hanover House
1 Bridge Close
Staines
TW18 4TB
Call 01784 446000
Fax 01784 446160
Gateway House
Cornbrash Park
Bumpers Way
Chippenham
Wiltshire
SN14 6RA
Call 01249 707000
Fax 01249 707007
Nelson House
Alington Road
Eynesbury
St Neots
Cambridgeshire
PE19 6RE
Call 01480 475069
Fax 01480 217023
18 London Lane
London
E8 3PR
Call 020 8525 5001
Fax 020 8525 5034
The Wave
1 View Croft Road
Shipley
West Yorkshire
BD17 7DU
Call 01274 599686
Fax 01274 717448
Visit www.hanover.org.uk