Page 40 - Housing Solutions Annual Report

METRIC 6: Operating margins
Our operating margin for social housing lettings remains at the top of the median quartile compared to the
sector, despite over 90% of our rents being set at a social rent. 2020 was the final year of the cumulative
five-year rent reduction set by the Welfare Reform and Work Act 2016 affect all our social rented housing.

We have invested significantly in our IT during the year and this has been particularly useful in ensuring
that our service provision continued during the Covid-19 pandemic and our residents are able to pay their
rent during this time. Our planned works programme included investments in extensive roofing, window
and fire safety works to a number of our estates.
Operating margin (social housing lettings only) %

45%
40%
35% 39.5% 39.3%
30% 34.9% 34.6% 33.6%
25% 28.3% 29.2%
20% 23.1%
15%
10%
5%

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

Operating margin (overall) %

45%
40%
40.2%
35%
36.2%
30% 34.6%
31.1% 30.8%
25%
26.6% 25.8%
20%
15% 20.0%
10%
5%
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

40 Annual Report and Accounts 2020

10/11/2020 13:35
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16645.02 HS Annual Report 86pp A4 v10.indd 40