Square Roots, the affordable housing subsidiary of developer London Square, has reported its first post-tax profit after turning around a near-£1m loss the previous year. The provider posted a £505,000 profit for the 2025 calendar year, driven by higher income from completed sites and a substantial tax credit.
Growth in income as homes come into management
Accounts filed at Companies House show revenue at the for-profit provider rose to £1.6m in 2025, up from £564,000 in 2024 — almost three times higher. The company said the increase followed the first full year of having three completed sites under management and rising occupation levels.
Despite the revenue growth, operating performance remained under pressure: administrative costs totalled £2.5m, producing an operating loss of £947,000. That loss was largely offset by an £866,000 tax credit, resulting in the reported post-tax surplus.
How many homes and where
Square Roots has been expanding its portfolio in and around London. At the start of 2025 it managed 437 homes across three sites, though one staircasing sale reduced managed homes to 436 during the year. By May 2026, practical completion of the Hawks Road development in Kingston increased the total number of homes under management to 561.
- Homes under management (start of 2025): 437
- Homes under management (after staircasing): 436
- Homes under management (May 2026): 561
- Shared ownership homes: 392
- London affordable rent homes: 44
Construction began in 2025 on a further 325 homes at two major schemes: The Biscuit Factory in Southwark and properties at Lea Bridge in Waltham Forest. Another site under construction is Electrobase in Crayford. Forecasts submitted with the accounts show completions for the pipeline sites are expected between March 2026 and December 2030.
Grant funding and public partnership
Square Roots retained its status as an investment partner with the Greater London Authority (GLA) for 2024–25. The provider has secured a total of £150.4m of grant funding to deliver 1,527 homes across seven sites — a significant public investment in the organisation’s development programme.
| Metric | Figure |
|---|---|
| Post-tax profit (2025) | £505,000 |
| Revenue (2025) | £1.6m |
| Administrative expenses | £2.5m |
| Tax credit | £866,000 |
| Grant funding secured | £150.4m |
| Homes planned (across seven sites) | 1,527 |
Square Roots was incorporated in 2020 and became a registered provider in 2022. It is a wholly owned subsidiary of London Square, which itself was noted in the filings as having undergone an ownership change through an acquisition by an Abu Dhabi-based entity.
Local impact and scrutiny
The accounts underline a common challenge for emerging affordable housing providers: the gap between development and operating sustainability. Administrative costs outstripped operating income in 2025, meaning the headline profit relied heavily on an £866,000 tax credit. That will prompt questions about the long-term viability of the business model if subsidies or tax reliefs were reduced.
For Londoners, the practical outcome is the delivery of homes in boroughs with high housing need. The majority of the units managed at present are for shared ownership, with a smaller tranche let at London affordable rent levels. The staggered completion dates through to 2030 mean local increases in supply will be gradual rather than immediate.
Council housing officers and the GLA will be watching whether the forecast completions are met and how the partnership between public grant funding and a for-profit provider performs over the coming years. The scale of grant funding — £150.4m — makes scrutiny of value for money and delivery timetables likely as schemes progress towards completion.
On the ground, residents in neighbourhoods such as Southwark, Waltham Forest, Kingston and Crayford will be directly affected as new homes are handed over. For now, the accounts show Square Roots moving into a more sustainable financial position, while still facing the operational test of turning a development pipeline and public backing into genuinely affordable homes for Londoners.
