Providers have achieved real-term reductions in their headline social housing costs per unit over the past five years, according to new findings.
The Homes and Communities Agency (HCA) has published an analysis of cost variation across the social housing sector and announced it will challenge registered providers on their approach to efficiency.
Median headline social housing costs were £3,550 per unit in 2015. The HCA’s analysis found significant variation across the sector, with the lower and upper quartiles of headline unit costs being £3,200 and £4,300 respectively.
Providers are forecasting making greater cost savings over the coming years, with the headline social housing cost per unit forecast to decrease by 7% in absolute terms.
The HCA report, Delivering better value for money: understanding differences in operating costs, highlights the main drivers of costs and seeks to ensure appropriate strategies are in place to maximise value for money.
The report found providers had achieved reductions in their headline social housing costs largely because of the cost of maintenance and major repairs falling through the near completion of the Decent Homes programme.
Fiona MacGregor, executive director of regulation at the HCA, said: ‘Savings being forecasted between now and 2020 to offset the impact of cuts in social rents are significantly greater than anything that the sector has achieved in recent years.
‘As the sector seeks to produce savings and simultaneously deliver investment in new and existing homes, it will be increasingly important that providers optimise the use of their resources and assets.’
