Page 37 - Housing Solutions Annual Report

The Regulator’s Value for Money metrics

The regulatory framework published by the Regulator of Social Housing includes specific requirements for
registered providers to publish evidence in the statutory accounts to enable stakeholders to understand the
provider’s:
1. Performance against its own value for money targets and any metrics set out by the regulator,
and how that performance compares to peers.
2. Measurable plans to address any areas of underperformance, including clearly stating areas
where improvements would not be appropriate and the rationale for this.
Our performance against each of the metrics and our peers are set out below:

Regulator of Social Housing Value Housing Peer Middle Sector Middle
for Money Metrics Solutions Quartile Quartile
2019/20 2018/19 2018/19

1 Reinvestment % 5.00% 6.48% 6.20%

2a New Supply Delivered (Social Housing Units) 3.50% 1.94% 1.50%

3 Gearing % 55.66% 52.60% 43.40%

4 EBITDA MRI % 139.38% 207% 184%

Headline Social Housing Cost Per Unit (Excl.
5a £2,575 - -
depreciation and planned maintenance)
5b Headline Social Housing Cost Per Unit £3,549 £3,676 £3,690

6a Operating Margin % (SHL only) 33.60% 34.90% 29.20%

6b Operating Margin % (overall) 33.78% 31.10% 25.80%
7 ROCE % 2.64% 8.00% 3.80%

METRIC 1: Reinvestment

Housing Solutions invested £27m in building new homes during 2019/20 and an additional £7.1m investment in
our current homes. This represents an additional £0.5m in new homes whilst investment in our current homes
was steady compared to last year.

12%
10%
8% 9.87% 8.70%
6% 6.98%
6.48% 6.20% 5.98%
4% 5.00%
4.20%
2%
0%
Peer Lower Peer Middle Peer Upper Sector Lower Sector Middle Sector Upper Housing Housing
Quartile Quartile Quartile Quartile Quartile Quartile Solutions Solutions
2019 2019 2019 2019 2019 2019 2018/19 2019/20

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