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'No clear link between repairs contract size and savings'

There is ‘no clear link’ between the size of a landlord’s repairs operation and cost savings, according to analysis by Housemark.

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The membership organisation, which specialises in benchmarking housing association performance, estimated UK social landlords spend £3bn on 18 million responsive repairs each year.

However, it said cost variations were affected more by geography than signing large contracts aimed at creating economies of scale. Contracts for more than 10,000 homes came in at an average of £444.27 per property, while those for less than 5,000 were slightly cheaper at £420.21 per property.

In April, Circle Housing said it was planning to move away from large partnering deals with a single contractor, after serious failings on its London contract with Kier prompted an early end to the deal and a severe upbraiding from the regulator.

Housemark’s analysis (see box) also showed no evidence that higher costs led to a better performance, or that in-house or contracting out was the best way to deliver the service.

It found repairs costs were highest in London – at an average of £824.58 per property – compared with a low of £483.43 in Yorkshire and the Humber.

Using data from 300 landlords, the research calculated that across the UK, social landlords directly employ around 20,000 people to deal with responsive repairs – including repairs operatives, surveyors and call centre staff. It found costs have fallen by 2% in real terms since 2010.

John Wickenden, data analysis manager at Housemark, said: ‘This research is important as it busts many of the myths surrounding responsive repairs.’ 

Housemark repairs

 


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