across the social housing sector in a fair and comparable way. We recognise that benchmarking our organisation is challenging due to the diverse nature of our activities and our specialism in respect of older people’s services and care. Nonetheless, we benchmark our costs for maintenance and management costs against data published by the Regulator and other agencies where available, targeting year-on-year improvements. During the year, the Board received regular reporting of the Group’s performance against its key performance indicators, which includes the seven value for money metrics published by the Regulator. The table below shows our performance against these regulatory measures compared with our sector peer group: 2 Strategic Report including Operating and Financial Review
The target for next year is £2.5m of tier 1 savings and £0.5m of tier 2. There are no targeted savings for tier 3. The increase to the target for tier 1 savings for next year from £1.5m to £2.5m is a reflection of the inflationary pressures seen in 2024. Next year a number of significant procurement processes will be concluded, providing more opportunity to achieve savings. Sector Scorecard The suite of measures issued by the Regulator of Social Housing that measure value for money is known as the ‘Sector Scorecard’. The definition of each metric and how it is calculated is detailed within the Regulator’s Value for Money Standard. The Sector Scorecard metrics remain the most appropriate set of measures to capture performance
METRIC
2024
2023 Care
Retirement housing
Retirement housing
Care
to let homes Total
to let homes Total Benchmark 1
1 Reinvestment
n/a
n/a 11.4%
n/a
n/a 17.5%
7.7%
2A New supply delivered (Social housing units) 2B New supply delivered
n/a
n/a
1.2%
n/a
n/a 2.1%
0.3%
(Non-social housing units)
n/a n/a n/a
n/a
0.1%
n/a n/a n/a
n/a 0.2% n/a 54.4% n/a 160.5%
0.2%
3 Gearing
n/a 53.8% n/a 141.5%
47.1%
4 EBITDA MRI interest cover 5 Social housing cost per unit
120.6%
6,225 42,659 11,580
£5,602 £35,848 £10,172 21.5% -5.1% 8.8%
6,550 19.1% 11.7%
6A Operating margin (social housing) 20.2% -2.7%
9.1% 5.5% 2.2%
6B Operating margin (overall) 7 Return on capital employed
n/a n/a
n/a n/a
n/a n/a
n/a 6.2% n/a 2.4%
2.5%
1 Regulator of Social Housing Value for Money Metrics Report – annex to Global Accounts 2023, Housing for Older People sub-sector. ANNUAL MAINTENANCE COST PER UNIT 2024 2023 Benchmark ref Retirement housing to let £2,424 £2,482 £2,711 1 Residential care homes £2,700 £1,616 n/a Weighted average £2,465 £2,351 n/a 1 Regulator of Social Housing Value for Money Metrics Report – annex to Global Accounts 2023.
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