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Repairs and maintenance spend tracker 2019
Housing associations’ spending on repairs and maintenance has ticked up again for the first time in three years. But as Gavriel Hollander finds out, it is a mixed picture across the sector. Illustration by Garry Walton
After several years of belt tightening, housing associations are once again upping their repairs and maintenance spending.
Inside Housing’s exclusive analysis of the 2017/18 financial statements of 230 housing associations reveals that total spend on repairs rose from £3.19bn to £3.27bn, an increase of 2.5%. Following a 1.7% reduction in overall spending found in last year’s survey, this suggests a significant turnaround in the way social landlords approach their repairs and maintenance budgets.
Our analysis features 10 fewer associations than last year, although most of that discrepancy is accounted for by mergers during the 2017/18 financial year, and so the total figures quoted are all like-for-like where possible compared with previous years.
This year’s accounts are significant for two reasons: they are the first to be compiled after the Grenfell Tower fire (covering the year ending March 2018) – an event that has had a major impact on housing associations’ spending plans; and they are the first since the government announced the end of the 1% rent cut for social housing – a policy that caused many to adopt a conservative approach to investment.
That said, an increase in spending on repairs and maintenance was far from uniform across the 230 organisations analysed here. Many associations are still trying to increase operating efficiency, which includes reductions in repairs and maintenance spend. Furthermore, some have a larger portfolio of homes following mergers or an uptick in development activity, and so are spending more on repairs overall even if their spend per home has dropped.
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As in previous years, the largest chunk of spending was on routine maintenance – day-to-day repairs work carried out in response to problems reported by tenants. Total routine maintenance spend was £1.94bn, or 59% of the overall spend. That’s an increase of 2.6% on last year’s figure of £1.89bn, while the proportion of the overall spend is virtually unchanged.
Planned maintenance – the area over which associations arguably have the most strategic control – was accountable for £846m, a 2.2% increase from the £828m booked last year. Major repairs, meanwhile, accounted for £486m. While that represents a 4.6% increase on 2016/17’s total of £464m, it is still well down on the equivalent figure for major repairs in 2015/16, when more than half a billion pounds was spent by the same group of organisations.
Not all landlords are upping their spend on repairs, however. And even for those that are, there is a wide variety of reasons behind the decisions and a range of strategies being deployed.
In addition to the data analysis, Inside Housing has scoured associations’ annual reports and financial statements to understand the way the sector is heading in terms of how it delivers one of its most important services.
While more landlords seem to have increased their spending on repairs and maintenance than cut it in 2017/18, this could represent a blip, with most larger associations apparently still pursuing a cost efficiency agenda.
Among the 12 housing associations that make up the G15 group of major London landlords, for example, the overall increase in spending was lower than for the country as a whole, standing at just 1.3% (see table overleaf). Indeed, for these 12 organisations, the area over which they can exert most control – planned maintenance – shows a decrease in spend of almost 10%.
The G15 also contains the three associations that showed the biggest overall monetary decrease in repairs and maintenance spend for the year: Clarion (£8.6m); A2Dominion (£8.5m); and Peabody (£6.2m). For each of these organisations, by far the biggest cut was to their planned maintenance spend.
Some of A2Dominion’s saving has come through “operating efficiencies and improved performance” as a result of its repairs and maintenance joint ventures, known as Pyramid Plus. According to the 37,000-home landlord, using the joint venture instead of outsourcing repairs and maintenance saved £1.5m in 2017/18.
Top 230 biggest spenders on repairs and maintenance 2018
| Organisation | Routine maintenance (£m) | Planned maintenance (£m) | Major repairs (£m) | Total spend 2017/18 (£m) | Total spend 2016/17 (£m) | Change in total spend from 2016/17 to 2017/18 (%) |
|---|---|---|---|---|---|---|
| Clarion | 121,800,000 | 47,900,000 | 24,900,000 | 194,600,000 | 203,200,000 | -4.23 |
| Sanctuary | 75,800,000 | 28,900,000 | 0 | 104,700,000 | 98,100,000 | 6.73 |
| L&Q | 63,347,000 | 36,307,000 | 0 | 99,654,000 | 82,515,000 | 20.77 |
| Peabody | 44,344,000 | 29,042,000 | 0 | 73,386,000 | 79,608,000 | -7.82 |
| Sovereign | 35,304,000 | 10,098,000 | 23,521,000 | 68,923,000 | 69,826,000 | -1.29 |
| Optivo | 28,391,000 | 31,823,000 | 5,352,000 | 65,566,000 | 62,065,000 | 5.64 |
| The Guinness Partnership | 32,200,000 | 20,100,000 | 7,800,000 | 60,100,000 | 54,200,000 | 10.89 |
| Home Group | 38,657,000 | 19,076,000 | 1,727,000 | 59,460,000 | 60,826,000 | -2.25 |
| Riverside | 52,109,000 | 0 | 6,108,000 | 58,217,000 | 60,316,000 | -3.48 |
| Places for People | 36,745,000 | 12,415,000 | 4,661,000 | 53,821,000 | 50,913,000 | 5.71 |
| Orbit | 27,788,000 | 24,112,000 | 0 | 51,900,000 | 53,591,000 | -3.16 |
| Notting Hill Genesis (Notting Hill Housing) | 26,200,000 | 9,700,000 | 12,500,000 | 48,400,000 | 45,000,000 | 7.56 |
| Thirteen Group | 25,541,000 | 3,451,000 | 19,401,000 | 48,393,000 | 52,094,000 | -7.10 |
| Onward Homes (Symphony HG) | 24,228,000 | 18,895,000 | 1,316,000 | 44,439,000 | 48,521,000 | -8.41 |
| WM Housing | 25,885,000 | 7,923,000 | 10,525,000 | 44,333,000 | 41,912,000 | 5.78 |
| Hyde | 21,660,000 | 15,312,000 | 2,928,000 | 39,900,000 | 38,716,000 | 3.06 |
| LiveWest | 23,061,000 | 9,374,000 | 6,448,000 | 38,883,000 | 36,862,000 | 5.48 |
| Stonewater | 23,490,000 | 4,739,000 | 9,469,000 | 37,698,000 | 33,107,000 | 13.87 |
| Gentoo | 24,917,000 | 8,267,000 | 3,536,000 | 36,720,000 | 36,157,000 | 1.56 |
| Karbon | 21,043,000 | 13,088,000 | 0 | 34,131,000 | 24,497,000 | 39.33 |
| Together Housing Group | 25,313,000 | 0 | 8,447,000 | 33,760,000 | 34,589,000 | -2.40 |
| Metropolitan Thames Valley (Metropolitan) | 21,951,000 | 9,651,000 | 1,602,000 | 33,204,000 | 30,927,000 | 7.36 |
| Aster | 13,040,000 | 6,999,000 | 11,844,000 | 31,883,000 | 33,162,000 | -3.86 |
| Southern Housing Group | 24,713,000 | 7,043,000 | 0 | 31,756,000 | 23,863,000 | 33.08 |
| Vivid | 13,724,000 | 5,509,000 | 12,458,000 | 31,691,000 | 34,321,000 | -7.66 |
| Notting Hill Genesis (Genesis) | 20,200,000 | 9,800,000 | 0 | 30,000,000 | 25,000,000 | 20.00 |
| Midland Heart | 20,743,000 | 5,622,000 | 3,468,000 | 29,833,000 | 30,796,000 | -3.13 |
| A2Dominion | 16,980,000 | 12,701,000 | 0 | 29,681,000 | 38,185,000 | -22.27 |
| WHG | 10,008,000 | 14,680,000 | 3,313,000 | 28,001,000 | 31,985,000 | -12.46 |
| Bromford | 19,285,000 | 2,368,000 | 6,058,000 | 27,711,000 | 25,888,000 | 7.04 |
| Incommunities | 19,503,000 | 4,384,000 | 2,370,000 | 26,257,000 | 25,783,000 | 1.84 |
| Anchor Hanover (Anchor Trust) | 13,153,000 | 12,736,000 | 0 | 25,889,000 | 27,080,000 | -4.40 |
| Jigsaw Group (New Charter Group) | 13,775,000 | 4,170,000 | 7,904,000 | 25,849,000 | 21,015,000 | 23.00 |
| PA Housing | 15,383,000 | 10,399,000 | 0 | 25,782,000 | 27,512,000 | -6.29 |
| WDH | 15,458,000 | 2,421,000 | 7,206,000 | 25,085,000 | 30,924,000 | -18.88 |
| Radian | 11,783,000 | 3,932,000 | 8,691,000 | 24,406,000 | 25,673,000 | -4.94 |
| Accent Group | 17,429,000 | 6,636,000 | 0 | 24,065,000 | 23,689,000 | 1.59 |
| Platform Housing Group (Waterloo) | 15,489,000 | 3,432,000 | 4,813,000 | 23,734,000 | 24,562,000 | -3.37 |
| One Vision Housing | 3,869,000 | 7,881,000 | 11,606,000 | 23,356,000 | 21,563,000 | 8.32 |
| Torus (Torus62 Limited) | 11,868,000 | 5,137,000 | 6,093,000 | 23,098,000 | 23,266,000 | -0.72 |
| Network Homes | 15,467,000 | 0 | 7,360,000 | 22,827,000 | 24,039,000 | -5.04 |
| One Housing | 11,210,000 | 5,256,000 | 5,880,000 | 22,346,000 | 25,974,000 | -13.97 |
| Plymouth Community Homes | 10,384,000 | 4,851,000 | 7,053,000 | 22,288,000 | 22,962,000 | -2.94 |
| Magenta Living | 9,823,000 | 3,846,000 | 8,464,000 | 22,133,000 | 18,187,000 | 21.70 |
| Housing & Care 21 | 12,301,000 | 9,031,000 | 658,000 | 21,990,000 | 18,658,000 | 17.86 |
| Yorkshire Housing | 11,313,000 | 5,529,000 | 4,827,000 | 21,669,000 | 21,604,000 | 0.30 |
| Bolton at Home | 15,135,000 | 6,237,000 | 0 | 21,372,000 | 22,537,000 | -5.17 |
| Your Housing Group | 12,767,000 | 7,425,000 | 995,000 | 21,187,000 | 26,988,000 | -21.49 |
| Catalyst | 14,153,000 | 6,131,000 | 0 | 20,284,000 | 23,754,000 | -14.61 |
| Wythenshawe Community Housing Group | 10,375,000 | 1,599,000 | 8,077,000 | 20,051,000 | 14,613,000 | 37.21 |
| Flagship Group | 17,360,000 | 2,555,000 | 0 | 19,915,000 | 17,723,000 | 12.37 |
| Bernicia | 8,584,000 | 4,703,000 | 6,249,000 | 19,536,000 | 20,207,000 | -3.32 |
| Longhurst Group | 10,941,000 | 5,926,000 | 1,563,000 | 18,430,000 | 16,043,000 | 14.88 |
| Knowsley Housing Trust | 11,897,000 | 0 | 6,474,000 | 18,371,000 | 14,775,000 | 24.34 |
| County Durham Housing Group | 13,978,000 | 3,561,000 | 544,000 | 18,083,000 | 21,020,000 | -13.97 |
| Curo | 9,507,000 | 0 | 8,545,000 | 18,052,000 | 18,760,000 | -3.77 |
| Plus Dane | 15,437,000 | 0 | 1,326,000 | 16,763,000 | 15,364,000 | 9.11 |
| The Wrekin Housing Group | 10,954,000 | 0 | 5,805,000 | 16,759,000 | 16,944,000 | -1.09 |
| Progress Housing Group | 10,390,000 | 2,911,000 | 3,457,000 | 16,758,000 | 14,254,000 | 17.57 |
| Grand Union Housing Group | 8,642,000 | 3,454,000 | 4,621,000 | 16,717,000 | 17,583,000 | -4.93 |
| ForViva | 11,165,000 | 4,390,000 | 1,050,000 | 16,605,000 | 16,451,000 | 0.94 |
| Great Places Housing Group | 7,559,000 | 3,045,000 | 4,755,000 | 15,359,000 | 14,708,000 | 4.43 |
| Moat | 9,069,000 | 3,601,000 | 2,495,000 | 15,165,000 | 14,272,000 | 6.26 |
| Paradigm | 6,560,000 | 8,569,000 | 0 | 15,129,000 | 13,576,000 | 11.44 |
| Rochdale Boroughwide Housing | 9,668,000 | 2,588,000 | 2,775,000 | 15,031,000 | 15,403,000 | -2.42 |
| Platform Housing Group (Fortis Living) | 8,049,000 | 2,971,000 | 4,010,000 | 15,030,000 | 14,608,000 | 2.89 |
| Salix Homes | 7,749,000 | 2,086,000 | 5,074,000 | 14,909,000 | 14,455,000 | 3.14 |
| EMH Group | 11,847,000 | 2,728,000 | 77,000 | 14,652,000 | 13,784,000 | 6.30 |
| Red Kite Community Housing | 3,087,000 | 2,189,000 | 9,109,000 | 14,385,000 | 15,737,000 | -8.59 |
| Torus (Liverpool Mutual Homes) | 13,432,000 | 901,000 | 0 | 14,333,000 | 12,769,000 | 12.25 |
| Vale of Aylesbury Housing | 8,134,000 | 1,000,000 | 4,579,000 | 13,713,000 | 17,182,000 | -20.19 |
| Regenda | 7,845,000 | 5,454,000 | 0 | 13,299,000 | 12,992,000 | 2.36 |
| GreenSquare Group | 8,270,000 | 2,929,000 | 1,895,000 | 13,094,000 | 13,216,000 | -0.92 |
| Beyond Housing (Coast & Country) | 7,177,000 | 2,341,000 | 3,476,000 | 12,994,000 | 12,929,000 | 0.50 |
| Metropolitan Thames Valley (Thames Valley Housing) | 9,515,000 | 1,193,000 | 2,122,000 | 12,830,000 | 12,003,000 | 6.89 |
| Jigsaw Group (Adactus Housing Group) | 6,847,000 | 4,886,000 | 764,000 | 12,497,000 | 12,923,000 | -3.30 |
| One Manchester | 6,013,000 | 1,650,000 | 4,824,000 | 12,487,000 | 10,423,000 | 19.80 |
| Yarlington Housing Group | 8,919,000 | 0 | 3,518,000 | 12,437,000 | 12,084,000 | 2.92 |
| Housing Plus Group | 2,936,000 | 9,500,000 | 0 | 12,436,000 | 12,591,000 | -1.23 |
| First Choice Homes Oldham | 6,155,000 | 3,020,000 | 3,087,000 | 12,262,000 | 12,775,000 | -4.02 |
| Shepherds Bush Housing Group | 4,223,000 | 7,448,000 | 0 | 11,671,000 | 9,022,000 | 29.36 |
| Weaver Vale Housing Trust | 5,275,000 | 4,300,000 | 2,037,000 | 11,612,000 | 10,250,000 | 13.29 |
| Anchor Hanover (Hanover) | 8,329,000 | 3,180,000 | 0 | 11,509,000 | 13,472,000 | -14.57 |
| CHP | 4,640,000 | 6,178,000 | 433,000 | 11,251,000 | 9,509,000 | 18.32 |
| Nottingham Community Housing Association | 6,400,000 | 1,457,000 | 2,945,000 | 10,802,000 | 9,791,000 | 10.33 |
| Connexus (Shropshire Housing) | 8,146,000 | 0 | 2,584,000 | 10,730,000 | 6,470,000 | 65.84 |
| West Kent Housing Association | 3,699,000 | 6,422,000 | 562,000 | 10,683,000 | 10,834,000 | -1.39 |
| Alliance Homes Group | 3,457,000 | 1,638,000 | 5,577,000 | 10,672,000 | 10,601,000 | 0.67 |
| Greenfields Community Housing | 4,554,000 | 3,778,000 | 2,336,000 | 10,668,000 | 10,955,000 | -2.62 |
| Swan Housing Association | 4,241,000 | 6,258,000 | 0 | 10,499,000 | 6,868,000 | 52.87 |
| Wandle | 4,776,000 | 2,774,000 | 2,871,000 | 10,421,000 | 10,013,000 | 4.07 |
| Town & Country Housing | 4,504,000 | 4,365,000 | 1,473,000 | 10,342,000 | 9,682,000 | 6.82 |
| Mosscare St Vincent's | 7,153,000 | 2,864,000 | 320,000 | 10,337,000 | 10,990,000 | 0.00 |
| Accord | 7,459,000 | 2,818,000 | 0 | 10,277,000 | 10,918,000 | -5.87 |
| BPHA | 6,598,000 | 3,544,000 | 0 | 10,142,000 | 11,378,000 | -10.86 |
| Soha Housing | 5,392,000 | 4,629,000 | 0 | 10,021,000 | 9,631,000 | 4.05 |
| Futures Housing Group | 4,482,000 | 3,600,000 | 1,898,000 | 9,980,000 | 10,122,000 | -1.40 |
| Selwood Housing | 4,400,000 | 2,786,000 | 2,687,000 | 9,873,000 | 8,517,000 | 15.92 |
| Cross Keys Homes | 6,880,000 | 2,945,000 | 0 | 9,825,000 | 9,713,000 | 1.15 |
| Phoenix Community Housing | 5,530,000 | 2,989,000 | 1,155,000 | 9,674,000 | 9,461,000 | 2.25 |
| Havebury Housing Partnership | 3,760,000 | 2,320,000 | 3,550,000 | 9,630,000 | 10,323,000 | -6.71 |
| Bromford (Merlin) | 5,707,000 | 1,584,000 | 2,169,000 | 9,460,000 | 9,277,000 | 1.97 |
| Origin Housing | 4,558,000 | 4,826,000 | 0 | 9,384,000 | 7,333,000 | 27.97 |
| Aspire Housing | 4,636,000 | 4,710,000 | 0 | 9,346,000 | 9,344,000 | 0.02 |
| RHP | 3,221,000 | 3,291,000 | 2,779,000 | 9,291,000 | 7,954,000 | 16.81 |
| Newlon Housing Trust | 5,524,000 | 3,638,000 | 37,000 | 9,199,000 | 7,631,000 | 20.55 |
| Poplar Harca | 6,168,000 | 688,000 | 2,296,000 | 9,152,000 | 9,410,000 | -2.74 |
| Octavia Housing | 4,647,000 | 3,908,000 | 513,000 | 9,068,000 | 9,174,000 | -1.16 |
| Halton Housing Trust | 5,579,000 | 854,000 | 2,452,000 | 8,885,000 | 8,833,000 | 0.59 |
| Hexagon | 3,707,000 | 1,366,000 | 3,756,000 | 8,829,000 | 6,873,000 | 28.46 |
| Livin | 6,901,000 | 483,000 | 1,354,000 | 8,738,000 | 7,623,000 | 14.63 |
| Magna Housing | 3,699,000 | 2,599,000 | 2,368,000 | 8,666,000 | 7,730,000 | 12.11 |
| Golding Homes | 4,352,000 | 1,858,000 | 2,448,000 | 8,658,000 | 9,282,000 | -6.72 |
| Broadacres Housing Association | 4,237,000 | 1,029,000 | 3,260,000 | 8,526,000 | 7,977,000 | 6.88 |
| Raven Housing Trust | 4,000,000 | 2,596,000 | 1,838,000 | 8,434,000 | 8,409,000 | 0.30 |
| Westward | 5,151,000 | 1,345,000 | 1,686,000 | 8,182,000 | 8,050,000 | 1.64 |
| Aldwyck Housing Group | 5,150,000 | 2,213,000 | 775,000 | 8,138,000 | 9,117,000 | -10.74 |
| Beyond Housing (Yorkshire Coast Homes) | 3,329,000 | 1,717,000 | 2,981,000 | 8,027,000 | 7,332,000 | 9.48 |
| Ongo | 4,766,000 | 1,401,000 | 1,740,000 | 7,907,000 | 9,118,000 | -13.28 |
| Estuary Housing | 3,715,000 | 1,389,000 | 2,759,000 | 7,863,000 | 6,050,000 | 29.97 |
| Irwell Valley Housing | 2,569,000 | 4,958,000 | 318,000 | 7,845,000 | 8,451,000 | -7.17 |
| Trafford Housing Trust | 4,326,000 | 3,240,000 | 126,000 | 7,692,000 | 8,231,000 | -6.55 |
| Castles & Coasts | 3,772,000 | 2,647,000 | 1,198,000 | 7,617,000 | 3,486,000 | 118.50 |
| Freebridge Community Housing | 3,808,000 | 1,234,000 | 2,427,000 | 7,469,000 | 7,669,000 | -2.61 |
| Saxon Weald | 3,328,000 | 2,818,000 | 1,291,000 | 7,437,000 | 6,809,000 | 9.22 |
| Muir Group | 4,207,000 | 862,000 | 2,312,000 | 7,381,000 | 6,846,000 | 7.81 |
| Saffron Housing Trust | 6,256,000 | 511,000 | 404,000 | 7,171,000 | 5,998,000 | 19.56 |
| Broadland Housing | 3,768,000 | 1,718,000 | 1,539,000 | 7,025,000 | 6,258,000 | 12.26 |
| Trent & Dove Housing | 1,920,000 | 3,990,000 | 856,000 | 6,766,000 | 6,503,000 | 4.04 |
| The Community Housing Group | 3,504,000 | 2,324,000 | 850,000 | 6,678,000 | 5,624,000 | 18.74 |
| Flagship Group (Victory Housing Trust) | 3,745,000 | 816,000 | 2,001,000 | 6,562,000 | 6,227,000 | 5.38 |
| Acis Group | 4,142,000 | 1,057,000 | 1,339,000 | 6,538,000 | 6,099,000 | 7.20 |
| Coastline Housing | 3,660,000 | 1,889,000 | 969,000 | 6,518,000 | 6,650,000 | -1.98 |
| SYHA | 5,302,000 | 1,032,000 | 0 | 6,334,000 | 5,682,000 | 11.47 |
| Rooftop Housing Group | 4,653,000 | 1,646,000 | 0 | 6,299,000 | 6,131,000 | 2.74 |
| Silva (Bracknell Forest Homes) | 2,998,000 | 748,000 | 2,253,000 | 5,999,000 | 6,540,000 | -8.27 |
| Wellingborough Homes | 4,633,000 | 661,000 | 603,000 | 5,897,000 | 5,420,000 | 8.80 |
| Stafford & Rural Homes | 3,981,000 | 1,896,000 | 0 | 5,877,000 | 5,681,000 | 3.45 |
| Bournville Village Trust | 3,578,000 | 1,192,000 | 1,100,000 | 5,870,000 | 5,925,000 | -0.93 |
| Shoreline Housing Partnership | 4,161,000 | 778,000 | 908,000 | 5,847,000 | 5,336,000 | 9.58 |
| Housing Solutions | 2,737,000 | 3,058,000 | 0 | 5,795,000 | 5,620,000 | 3.11 |
| Tower Hamlets Community Housing | 2,371,000 | 3,407,000 | 0 | 5,778,000 | 4,920,000 | 17.44 |
| North Devon Homes | 2,595,000 | 1,243,000 | 1,737,000 | 5,575,000 | 5,227,000 | 6.66 |
| Cobalt Housing Limited | 3,783,000 | 721,000 | 1,054,000 | 5,558,000 | 0 | 0.00 |
| Habinteg | 3,052,000 | 1,765,000 | 587,000 | 5,404,000 | 5,300,000 | 1.96 |
| Gateway Housing Association | 3,410,000 | 1,270,000 | 683,000 | 5,363,000 | 4,068,000 | 31.83 |
| Advance Housing and Support | 2,491,000 | 2,146,000 | 640,000 | 5,277,000 | 4,718,000 | 11.85 |
| Hastoe Group | 3,378,000 | 743,000 | 1,069,000 | 5,190,000 | 4,974,000 | 4.34 |
| South Liverpool Homes | 2,686,000 | 1,707,000 | 768,000 | 5,161,000 | 4,669,000 | 10.54 |
| Cheshire Peaks & Plains Housing Trust | 3,286,000 | 1,863,000 | 0 | 5,149,000 | 5,675,000 | -9.27 |
| Community Gateway Association | 4,295,000 | 713,000 | 114,000 | 5,122,000 | 4,536,000 | 12.92 |
| Two Rivers Housing | 2,203,000 | 2,712,000 | 0 | 4,915,000 | 4,805,000 | 2.29 |
| Islington and Shoreditch Housing Association | 2,980,000 | 646,000 | 1,088,000 | 4,714,000 | 4,559,000 | 3.40 |
| Settle Group (North Hertfordshire Homes) | 2,672,000 | 1,918,000 | 66,000 | 4,656,000 | 3,798,000 | 22.59 |
| Hightown Housing Association | 2,932,000 | 784,000 | 850,000 | 4,566,000 | 3,853,000 | 18.51 |
| Southway Housing Trust | 2,716,000 | 1,255,000 | 586,000 | 4,557,000 | 4,606,000 | -1.06 |
| Calico | 3,463,000 | 372,000 | 683,000 | 4,518,000 | 5,034,000 | -10.25 |
| WATMOS Community Homes | 3,254,000 | 1,152,000 | 0 | 4,406,000 | 4,283,000 | 2.87 |
| Gloucester City Homes | 3,816,000 | 371,000 | 189,000 | 4,376,000 | 4,343,000 | 0.76 |
| Thrive Homes | 2,843,000 | 1,361,000 | 0 | 4,204,000 | 4,261,000 | -1.34 |
| East End Homes | 3,078,000 | 442,000 | 536,000 | 4,056,000 | 3,575,000 | 13.45 |
| Salvation Army Housing Association | 2,662,000 | 469,000 | 920,000 | 4,051,000 | 3,933,000 | 3.00 |
| North Star | 1,836,000 | 1,828,000 | 369,000 | 4,033,000 | 3,665,000 | 10.04 |
| Boston Mayflower | 1,964,000 | 1,340,000 | 699,000 | 4,003,000 | 4,107,000 | -2.53 |
| Connect Housing | 2,171,000 | 1,611,000 | 214,000 | 3,996,000 | 4,204,000 | -4.95 |
| Johnnie Johnson Housing | 1,422,000 | 2,559,000 | 0 | 3,981,000 | 4,388,000 | -9.28 |
| Watford Community Housing | 3,372,000 | 354,000 | 214,000 | 3,940,000 | 3,932,000 | 0.20 |
| Teign Housing | 2,007,000 | 601,000 | 1,312,000 | 3,920,000 | 4,233,000 | -7.39 |
| Leeds Federated | 2,383,000 | 766,000 | 712,000 | 3,861,000 | 4,272,000 | -9.62 |
| Orwell Housing | 2,293,000 | 1,457,000 | 0 | 3,750,000 | 3,783,000 | -0.87 |
| Ocean Housing Group | 2,334,000 | 1,150,000 | 242,000 | 3,726,000 | 3,049,000 | 22.20 |
| Cottsway | 1,462,000 | 1,643,000 | 606,000 | 3,711,000 | 4,052,000 | -8.42 |
| Prima Group | 2,088,000 | 0 | 1,507,000 | 3,595,000 | 2,610,000 | 37.74 |
| Bromford (Severn Vale Housing) | 2,233,000 | 0 | 1,327,000 | 3,560,000 | 3,217,000 | 10.66 |
| B3Living | 2,319,000 | 1,132,000 | 0 | 3,451,000 | 3,064,000 | 12.63 |
| Colne | 2,333,000 | 245,000 | 830,000 | 3,408,000 | 2,990,000 | 13.98 |
| Worthing Homes | 1,504,000 | 1,064,000 | 697,000 | 3,265,000 | 3,162,000 | 3.26 |
| Bromsgrove District Housing Trust | 2,310,000 | 796,000 | 0 | 3,106,000 | 2,761,000 | 12.50 |
| Trident Group | 2,245,000 | 844,000 | 0 | 3,089,000 | 3,016,000 | 2.42 |
| Impact Housing | 2,049,000 | 1,021,000 | 11,000 | 3,081,000 | 3,140,000 | -1.88 |
| Abbeyfield | 2,465,000 | 0 | 548,000 | 3,013,000 | 1,533,000 | 96.54 |
| South Lakes Housing | 1,480,000 | 1,416,000 | 0 | 2,896,000 | 2,981,000 | -2.85 |
| The Pioneer Group | 1,576,000 | 837,000 | 457,000 | 2,870,000 | 2,712,000 | 5.83 |
| Rosebery Housing Association | 1,342,000 | 1,438,000 | 0 | 2,780,000 | 2,916,000 | -4.66 |
| Framework Housing Association | 2,131,000 | 581,000 | 0 | 2,712,000 | 0 | 0.00 |
| Staffordshire Housing Association | 2,359,000 | 335,000 | 0 | 2,694,000 | 2,876,000 | -6.33 |
| Christian Action Housing | 2,201,000 | 407,000 | 0 | 2,608,000 | 2,149,000 | 21.36 |
| CHS Group | 1,731,000 | 872,000 | 0 | 2,603,000 | 2,894,000 | -10.06 |
| Industrial Dwellings Society | 1,762,000 | 363,000 | 426,000 | 2,551,000 | 2,410,000 | 5.85 |
| Mount Green Housing Association | 983,000 | 987,000 | 569,000 | 2,539,000 | 2,137,000 | 18.81 |
| Equity Housing Group | 1,737,000 | 439,000 | 340,000 | 2,516,000 | 3,980,000 | -36.78 |
| Byker Community Trust | 1,524,000 | 114,000 | 837,000 | 2,475,000 | 2,372,000 | 4.34 |
| Joseph Rowntree Housing Trust | 1,687,000 | 350,000 | 382,000 | 2,419,000 | 2,528,000 | -4.31 |
| St Mungo's | 1,455,000 | 934,000 | 0 | 2,389,000 | 1,749,000 | 36.59 |
| Look Ahead | 2,243,000 | 0 | 138,000 | 2,381,000 | 2,316,000 | 2.81 |
| Suffolk Housing | 2,013,000 | 322,000 | 0 | 2,335,000 | 1,958,000 | 19.25 |
| United Communities | 1,771,000 | 561,000 | 0 | 2,332,000 | 1,486,000 | 56.93 |
| Durham Aged Mineworkers' Homes Association | 2,151,000 | 80,000 | 0 | 2,231,000 | 1,982,000 | 12.56 |
| Howard Cottage Housing Association | 1,363,000 | 716,000 | 0 | 2,079,000 | 1,842,000 | 12.87 |
| Black Country Housing Group | 1,860,000 | 195,000 | 0 | 2,055,000 | 2,193,000 | -6.29 |
| Bournemouth Churches Housing Association | 1,138,000 | 392,000 | 511,000 | 2,041,000 | 2,575,000 | -20.74 |
| Inquilab | 1,179,000 | 347,000 | 255,000 | 1,781,000 | 1,684,000 | 5.76 |
| Golden Lane Housing | 712,000 | 920,000 | 130,000 | 1,762,000 | 1,662,000 | 6.02 |
| Solon South West Housing Association | 488,000 | 1,178,000 | 91,000 | 1,757,000 | 1,727,000 | 1.74 |
| Central & Cecil Housing Trust | 866,000 | 11,000 | 763,000 | 1,640,000 | 1,530,000 | 7.19 |
| Eden Housing Association | 1,186,000 | 448,000 | 0 | 1,634,000 | 1,818,000 | -10.12 |
| Inclusion Housing Community Interest Company | 664,000 | 325,000 | 558,000 | 1,547,000 | 0 | 0.00 |
| Railway Housing Association | 1,353,000 | 186,000 | 0 | 1,539,000 | 1,509,000 | 1.99 |
| Arcon Housing Association | 870,000 | 357,000 | 306,000 | 1,533,000 | 1,326,000 | 15.61 |
| Croydon Churches Housing Association | 1,199,000 | 334,000 | 0 | 1,533,000 | 1,807,000 | -15.16 |
| Plexus UK (First Project) Limited | 1,453,000 | 0 | 0 | 1,453,000 | 0 | 0.00 |
| Arches Housing | 1,063,000 | 351,000 | 0 | 1,414,000 | 1,141,000 | 23.93 |
| Pickering & Ferens Homes | 632,000 | 494,000 | 217,000 | 1,343,000 | 1,642,000 | -18.21 |
| Tuntum | 1,055,000 | 286,000 | 0 | 1,341,000 | 1,111,000 | 20.70 |
| Warrington Housing Association | 923,000 | 0 | 414,000 | 1,337,000 | 1,337,000 | 0.00 |
| Leeds & Yorkshire Housing Association | 803,000 | 415,000 | 107,000 | 1,325,000 | 1,135,000 | 16.74 |
| Local Space | 755,000 | 507,000 | 0 | 1,262,000 | 868,000 | 45.39 |
| Manningham Housing Association | 743,000 | 449,000 | 38,000 | 1,230,000 | 1,090,000 | 12.84 |
| Brunelcare | 983,000 | 123,000 | 105,000 | 1,211,000 | 1,149,000 | 5.40 |
| Arawak Walton Housing Association | 826,000 | 181,000 | 200,000 | 1,207,000 | 1,432,000 | -15.71 |
| Nehemiah UCHA | 728,000 | 472,000 | 0 | 1,200,000 | 1,217,000 | -1.40 |
| Hundred Houses Society | 973,000 | 67,000 | 0 | 1,040,000 | 1,330,000 | -21.80 |
| English Rural | 485,000 | 323,000 | 228,000 | 1,036,000 | 988,000 | 4.86 |
| Reside Housing Association Limited | 814,000 | 208,000 | 0 | 1,022,000 | 725,000 | 40.97 |
| Unity Homes & Enterprises | 587,000 | 289,000 | 0 | 876,000 | 1,049,000 | -16.49 |
| Epic Housing | 441,000 | 0 | 144,000 | 585,000 | 529,000 | 10.59 |
| YMCA St Pauls Group | 134,000 | 42,000 | 0 | 176,000 | 0 | 0.00 |
| Omega Housing | 6,000 | 0 | 0 | 6,000 | 0 | 0.00 |
| Prospect Housing Limited | 0 | 0 | 0 | 0 | 0 | 0.00 |
| Sustain (UK) | 0 | 0 | 0 | 0 | 0 | 0.00 |
Source: HousingExpert
However, A2Dominion’s annual report also shows that some of the reduction in planned spend is cyclical, and is dependent on the phasing of the Decent Homes Programme.
In its statement on future asset management, it reads: “The group’s planned and major repairs programmes reflect the work required to be done in order to ensure decent homes compliance. This means that in some years there may be more work required than in others due to the timing of the replacement of a properties (sic) components.”
Peabody, meanwhile, has used its merger with Family Mosaic – which completed during the 2017/18 financial year – to take a proactive approach to reducing repairs costs. In its first annual report as a single entity, the 66,000-home landlord revealed that it is “reviewing the way we manage our repairs and maintenance services to better understand the effectiveness of the two legacy approaches.”
It adds that the review would aim to support “the growth of our in-house repairs service [which] will reduce repairs costs by exploiting the benefits of scale”.
Top 10 percentage increases in major repairs spend
| Organisation | 2016/17 total spend (£m) | 2017/18 total spend (£m) | % increase |
|---|---|---|---|
| Castles & Coasts | 3.5 | 7.6 | 118.5 |
| Abbeyfield | 1.5 | 3 | 96.5 |
| Connexus | 6.5 | 10.7 | 65.8 |
| United Communities | 1.5 | 2.3 | 56.9 |
| Swan | 6.9 | 10.5 | 52.9 |
| Local Space | 0.9 | 1.3 | 45.4 |
| Reside Housing Association | 0.7 | 1 | 41 |
| Karbon Homes | 24.5 | 34.1 | 39.3 |
| Prima Group | 2.6 | 3.6 | 37.7 |
| Wythenshawe Community Housing | 14.6 | 20 | 37.2 |
Source: HousingExpert
Note: figures rounded to one decimal place
At the other end of the scale, among the biggest landlords, is L&Q. The 95,000-home association upped its overall spending by more than £17m in 2017/18, the equivalent of a 21% hike.
L&Q’s annual report shows that the group has made major investment in improving its repairs and maintenance performance. This includes a £150m investment in new technology over five years “to deliver improved efficiency and better customer service, for example making it easier for people to manage repairs online”. This suggests that, as with some of its peers, L&Q could be investing to drive further savings in the future.
That investment has not so far improved performance, according to the group’s annual report, with resident satisfaction at 70%, below its 75% target.
L&Q is also one of many landlords to reference the Grenfell fire as a catalyst for upping investment on its housing stock. It assigned an additional £50m for fire safety measures, including for the replacement of aluminium composite material cladding on blocks that failed government safety tests. Although some of this fund is likely to contribute to this year’s increased overall spend, including a £4m maintenance provision relating to post-Grenfell remediation, it is unclear how much that figure would be.
Top 10 decreases in major repairs spend
| Organisation | 2016/17 total spend (£m) | 2017/18 total spend (£m) | Savings (in £m) |
|---|---|---|---|
| Clarion | 203.2 | 194.6 | 8.6 |
| A2Dominion | 38.2 | 29.7 | 8.5 |
| Peabody | 79.6 | 73.4 | 6.2 |
| WDH | 30.9 | 25.1 | 5.8 |
| Your Housing Group | 27 | 21.2 | 5.8 |
| Onward Homes (Symphony Housing Group) | 48.5 | 44.4 | 4.1 |
| WHG | 32 | 28 | 4 |
| Thirteen | 52 | 48.4 | 3.7 |
| One Housing | 26 | 22.3 | 3.6 |
| Catalyst | 23.8 | 20.3 | 3.5 |
Source: HousingExpert
Note: figures rounded to one decimal place
Mergers and restructures have also played their part in this year’s results. Karbon Homes, which recorded the biggest increase in percentage terms of any association spending more than £20m in total (a 39% rise from £24.5m to £34.1m), ascribes some of that increase to the accounting
implications of its 2017 merger.
In its annual report, the North East landlord says that it has “reduced the capitalisation of repairs costs as we have implemented a consistent approach following amalgamation, [meaning] that more repairs are expensed as opposed to being capitalised on the balance sheet”.
However, at the same time, Karbon has reduced its planned maintenance spend “as a result of the completion of major modernisation programmes”.
Karbon’s performance on repairs and maintenance spending is reflective of much of the sector.
G15 members
| Organisation | Major repairs expenditure 2016/17 (£m) | Major repairs expenditure 2017/18 (£m) | Planned maintenance spend 2016/17 (£m) | Planned maintenance spend 2017/18 (£m) | Routine maintenance spend 2016/17 (£m) | Routine maintenance spend 2017/18 (£m) | Total spend 2016/17 (£m) | Total spend 2017/18 (£m) | % change in total spend (2017 to 2018) |
|---|---|---|---|---|---|---|---|---|---|
| A2Dominion | 0 | 0 | 20.8 | 12.7 | 17.4 | 17 | 38.2 | 29.7 | -22.3 |
| Catalyst | 0 | 0 | 9.8 | 6.1 | 13.9 | 14.2 | 23.8 | 20.3 | -14.6 |
| Clarion | 0 | 24.9 | 75.5 | 47.9 | 127.7 | 121.8 | 203.2 | 194.6 | -4.2 |
| Hyde | 2 | 2.9 | 15.5 | 15.3 | 21.2 | 21.7 | 38.7 | 39.9 | 3.1 |
| L&Q | 0 | 0 | 30.2 | 36.3 | 52.4 | 63.3 | 82.5 | 99.7 | 20.8 |
| Metropolitan Thames Valley | 6.2 | 3.7 | 11.6 | 10.8 | 25.1 | 31.5 | 42.9 | 46 | 7.2 |
| Network Homes | 8.6 | 7.4 | 0 | 0 | 15.5 | 15.5 | 24 | 22.8 | -5 |
| Notting Hill Genesis | 11.6 | 12.5 | 17.8 | 19.5 | 40.6 | 46.4 | 70 | 78.4 | 12 |
| One Housing | 5.8 | 5.9 | 7.5 | 5.3 | 12.6 | 11.2 | 26 | 22.3 | -14 |
| Optivo | 9.6 | 5.4 | 21.3 | 31.8 | 31.2 | 28.4 | 62.1 | 65.6 | 5.6 |
| Peabody Trust | 0 | 0 | 33.4 | 29 | 46.2 | 44.3 | 79.6 | 73.4 | -7.8 |
| Southern Housing Group | 0 | 0 | 2.7 | 7 | 21.2 | 24.7 | 23.9 | 31.8 | 33.1 |
| Total | 43.8 | 62.6 | 246.2 | 221.9 | 424.9 | 439.9 | 714.8 | 724.4 | 1.3 |
Source: HousingExpert
Note: figures rounded to one decimal place
Although spending has gone up, it is not always obvious whether this is the result of a shift in emphasis when it comes to how to deploy resources, or a one-off due to the circumstances of the year.
Castles & Coasts topped the table in terms of largest percentage increase in spend but is an illustration of the mixed nature of these results. Much of its increase is down to this being the first year for the association following the merger of Two Castles and Derwent & Solway, the latter of which was previously part of Your Housing Group. However, the new association has committed to upping its spending in coming years, with its corporate strategy saying it plans to spend more than £10.5m a year up to 2023.
It is true that some of the funding constraints that came with the 1% rent cut are no longer a factor. But at the same time, associations are being asked to deliver more new housing than ever before – and are as keen as ever to find efficiencies in the rest of their businesses.
Spending on repairs and maintenance has certainly increased, as our analysis proves, but it may need another year or two of consistent growth before we can say things have changed.
Future of Work Festival
New for 2019, Inside Housing’s Future of Work Festival will bring together HR and organisational development professionals from the housing sector to discuss and explore the challenges of how to successfully evolve towards the working environment of the future.
Seize this opportunity to rethink your workforces and workplaces by reconsidering the roles of individuals, organisations, automation technology and how society will approach work.
Assess and benchmark your business strategy with the leaders in the housing sector:
- Defining the Future of Work: what does it look like, what will be the implications, how do you rethink your workforce strategy?
- How to embed Electronic Data Interchange into your workforce, attract the widest pool of talent, be authentic and innovative, keep your workforce happy and productive, and position your brand
- Identifying, assessing and closing the skill gaps: what skills will be required in the future and how do you prepare for the undefined?
- Appealing to and maintaining a multi-generational workforce: how to address differing career aspirations, expectations, behaviours and values
- How best to implement the best tech, for example, big data, artificial intelligence, automation, blockchain and the Internet of Things. How will this change workplace skills and wages? How do you evolve towards a ‘STEMpathetic’ workforce?
- Providing your HR and OD department with the right skills and toolkits to revise talent, organisational structures and business models. Be social and environmentally friendly, and data driven – investing in disruptive tech, skills training and ethical use of tech
- Promoting well-being and employee experience
- Introducing training and learning as part of the career path
- Embracing agile working – understanding how flexible and alternative working arrangements can boost productivity
The festival will take place on 17 September, at Westminster Bridge, County Hall in London.
