Sector Scorecard gets industry backing

January 25th, 2017 by Robert Weatherall in Home Group News

Mark Henderson looking off camera

A pilot scheme designed to improve efficiency in the affordable housing sector has received backing from industry leaders.

The Sector Scorecard has launched today (WED) and aims to create an agreed set of metrics upon which housing providers can compare their performances and ensure they are providing value for money for their customers.

The scheme has received the backing of Housing Minister Gavin Barwell and National Housing Federation chief executive David Orr.

Groups including G15, G320, Placeshapers, CIH and Homes for the North have already thrown their weight behind the scheme which has been formed by the Working Efficiency Group during the last 18 months.

The Sector Scorecard will measure 15 indicators across five general areas focusing on: business health, development, outcomes delivered, effective asset management and operating efficiencies.

The specific indicators are: 

  1. Operating margin
  2. Increase/decrease in operating margin
  3. EBITDA MRI (as a percentage of interest)
  4. Units developed
  5. Units developed (as a percentage of units owned)
  6. Gearing
  7. Customers VFM satisfaction
  8. Investment in new housing for every £1 generated from operations
  9. Investment in communities for every £1 generated from operations,
  10. Return on capital employed
  11. Occupancy
  12. Ratio of responsive repairs to planned maintenance spend
  13. Headline social housing cost per unit
  14. Rent collected
  15. Overheads as a percentage of adjusted turnover.

As Government continues to make changes which will result in the sector once again reclassified as ‘private’ the Sector Scorecard will be a system operated by the sector for the sector.

Mr Barwell said: “I welcome this initiative to develop a set of common efficiency metrics for the housing association sector. 

“The sector has a vital role to play in providing the homes we need, and housing associations need to be able to demonstrate that they are making the best possible use of their resources to deliver for the communities they serve.”          

The Efficiency Working Group has been spearheaded by Home Group chief executive Mark Henderson.

He said: “I’m grateful to all the members of the group who have worked to agree a set of metrics which I genuinely believe will work for all. We’ve been careful to look at areas which will allow us to compare like with like, while recognising that there areas of difference within the sector.

“Formulating the 15 indicators is a great starting point, but what we really need now is for the wider sector to embrace this and sign up to the pilot on mass. By gaining the support and involvement of as many providers as possible we’ll be able to further refine the metrics and ensure we have a system which, not only fully reflects the needs of the sector, but acts as robust mechanism for years to come.”

That message was reinforced by Mr Orr. He added: “It is great to see sector leadership on the important issue of efficiencies. Housing associations need to be able to tell a clear story on how efficient we are and the impact we are making, otherwise others will attempt to do it for us.

“Having a set of indicators that are owned and reported by the sector would be a real step forward. The proposed pilot will be critical in making sure these indicators work for housing associations in different markets and different areas and give us the information we need to paint a coherent picture of sector efficiency.”



For more information on the Sector Scorecard, including details of how to sign up, email: sectorscorecard@homegroup.org.uk