Frugal sector on course to meet savings goal
Housing associations are on track to bust government efficiency targets after making savings of more than £300 million, the Housing Corporation has claimed.
Figures from the corporation released on Wednesday showed that housing associations had made savings totalling £318 million in 2005/06. The government ordered the sector to deliver savings totalling £355 million by 2007/08.
The savings figure for 2005/06 has however fallen from the £325 million originally predicted by associations.
Steve Smedley, head of research and development at Housemark, said it would be tough for associations to maintain this level of cost cutting.
‘Organisations will make all the obvious savings and the obvious gains in the early years to get them in the bank,' he said. ‘Whether they can sustain that over the coming years is another issue.'
Corporation chief executive Jon Rouse said the results showed that the sector was ‘rising to the challenge set by government'.
The corporation is carrying out further analysis of the figures, due for publication in January.