27 June 2008
Housing associations can make further efficiency gains by striving harder to keep down costs, according to a study.
The annual operating cost index for registered social landlords, published by the Housing Corporation on June 25, found significant differences in the costs recorded by associations that deliver broadly similar services.
While they achieved total efficiency gains of £360m between 2005 and 2007, overall costs increased well ahead of inflation.
The index compares the actual costs of RSLs against their predicted costs. The costs of Midsummer Housing Association, part of the Guinness Group, were just 29% of predicted costs (or 33% without major repairs).
But Amicus Horizon Group reported actual costs more than double its predicted costs.
Total costs for traditional RSLs are rising at 6% per annum if major repairs are included or 5% if they are not. Associations set up following stock transfers from councils reported costs increasing only in line with inflation.
PFjun2008
