Regulator of Social Housing Key Measures 2021/2022
As a community landlord, Value for Money (VfM) is a key driver and is integral to our culture and everything that we do. We work closely with our Customer Board Partnership and Scrutiny Panel to deliver VfM targets to meet the objectives in our Corporate Plan. We aim to deliver a high-quality service as efficiently and effectively as we can.
As a housing provider we are subject to regulation put in place by our regulator, The Regulator of Social Housing (RSH). They have identified seven key measures to see how well we are performing.
The RSH releases the sector median, which is the industry average across all providers from the year prior. This gives landlords, like us, the opportunity to show how we measure up against the industry as well as be able to set our own targets against these averages in an informed way. The sector median is based on an average of performance from the previous year so you will note below that these have earlier dates on them to our own targets and actual performance data which is for the year from April 2021 to March 2022.
Below, we have explained each of the seven measures, given the sector median for the previous year, outlined our own target set this year by our Board and given information on whether we have achieved each of the targets set against them.
Measure 1: Headline Social Housing Cost per unit
The Headline Social Housing Cost is the cost that is takes to manage and maintain one property. This is worked out by adding all of our costs across social housing and dividing them by the number of properties we have.
Sector Median (2020/2021) - £3,940
NDH Target (2021/2022) - £3,524
NDH Actual (2021/2022) - £3,507 - On target, but below sector median
Measure 2: New Supply
The New Supply measure is the number of new properties we have built in the year, but as a percentage measure across all of our properties. So for example, if we had 100 properties and we built 1 new property the percentage value would be 1%.
This measure is broken into two - one for social housing and one for non social housing.
Social Housing
Sector Median (2020/2021) - 1.2%
NDH Target (2021/2022) - 0.70%
NDH Actual (2021/2022) - 0.30% - Below target and sector median
Non-social Housing
Sector Median (2020/2021) - 0.0%
NDH Target (2021/2022) - 0.60%
NDH Actual (2021/2022) - 0.32% - Below target and sector median
Measure 3: Reinvestment
The reinvestment measure is the percentage of investment that we put back into building new homes or maintaining our existing homes. The percentage comes from calculating the value against our total value of all homes we own. So for example, if we said all of our housing stock was valued at £100 and we spent £1 on either building or maintaining homes the percentage value would be 1%.
Sector Median (2020/2021) - 5.0%
NDH Target (2021/2022) - 3.4%
NDH Actual (2021/2022) - 1.76% - Below target and sector median
Measure 4: Gearing
Gearing is the amount of debt we have as a company. The percentage comes from calculating the total value of our homes compared to how much is debt. So for example, if we said all of our housing stock was valued at £100 and we had £50 in debts the percentage value would be 50%.
Sector Median (2020/2021) - 41.8%
NDH Target (2021/2022) - 63.3%
NDH Actual (2021/2022) - 57.6% - Above target but below sector median
Measure 5: Earnings before interest, tax, depreciation and amortisation - Major repairs included (EBITDA MRI)
This measure is here to show how much capacity we have with our finances to invest as a company. So for example, if we said as a company we have £100 but £50 was in the value of our homes, we would have £50 in cash value to invest in services and so the percentage value would be 50%.
Sector Median (2020/2021) - 200.0%
NDH Target (2021/2022) - 123.8%
NDH Actual (2021/2022) - 122.9% - On target but below sector median
Measure 6: Operating Margin
The Operating Margin measure is here to show a companies surplus over the year. The surplus is the amount of money made that hasn't been spent after all expenses have been accounted for. This would most commonly be referred to as profit, but as we are a not-for-profit and make none this is referred to as surplus which is then reinvested in the next year's finances. The percentage is based on the total income and how much was spent. So for example, if we had £100 income from rent money and funding in the year and we spent £75 in the year our percentage value of surplus would be 25%.
This measure is broken into two - one for social housing and one for overall performance.
Social Housing
Sector Median (2020/2021) - 24.4%
NDH Target (2021/2022) - 19.8%
NDH Actual (2021/2022) - 22.0% - Above target but below sector median
Overall
Sector Median (2020/2021) - 24.2%
NDH Target (2021/2022) - 19.0%
NDH Actual (2021/2022) - 22.7% - Above target but below sector median
Measure 7: Return on Capital employed
This measures how efficiently we are investing our capital resources. This measure is about how financially viable we are and how well we invest our resources and assets.
Sector Median (2020/2021) - 3.5%
NDH Target (2021/2022) - 2.6%
NDH Actual (2021/2022) - 2.9% - Above target but below sector median
