Social Housing Asset Management: An Innovative Approach to Increase Productivity and Performance

Abstract

There is substantial pressure on social housing sector organisations commissioning or delivering services to reduce the cost of providing services whilst maintaining service standards. In order to achieve this operationally, organisations need to evaluate their service costs, understand where and how service costs are consumed and how to use financial resources better. A key asset for social housing providers is their housing stock, and the efficient management of financial resources to maintain their assets and make the best use of available resources has become more critical over the last years. This case study is how One Vision Housing, a Registered Provider (RP), has adopted private sector methodologies in their asset management strategies and has tailored it for the social housing sector to increase productivity and performance. The broad methodology and thinking was adopted from private-sector approaches and specifically developed for the Housing Sector at One Vision Housing. It is an innovative approach for the social housing sector and there are no practitioners or academic publications about this approach, the methodology, pitfalls and potential benefits. Although still in the early stages of implementation, it is anticipated that between 4 and 6% of cost savings in service delivery can be identified and realised in the medium term. Approximately £ 7 billion was spent in 2009 on maintenance and repair of housing assets in England alone, and wider adoption of this innovation can make a significant contribution to performance in the sector. It is a good example of service innovation in the public or voluntary sectors and an innovation that improves productivity and business performance.