The HCA has published a new analysis of cost variation across
the social housing sector and announced that it will increasingly
challenge registered providers on their approach to efficiency as
part of its regulation of Value for Money (VfM).
Delivering better value for money: understanding
differences in operating costs is part of a suite of documents
published by the HCA as a Regulator to help housing association
boards and executives further understand the main drivers of costs
and ensure appropriate strategies are in place to maximise VfM and
meet their objectives of investing in new and existing homes and
delivering quality services to tenants.
The analysis shows that median headline social housing costs
were £3,550 per unit in 2015. The HCA analysis found significant
variation across the sector, with the lower and upper quartiles of
headline unit costs being £3,200pa and £4,300pa respectively.
Local authorities and other stakeholders may find the analysis
useful in holding housing associations to account and as a useful
benchmark for their own VfM strategies.