Financial Statements 2016 | Page 45

The Group’s offsite manufacturing hub, LoCaL Homes, was launched in 2011 and has delivered over 400 low carbon, high performance homes for the Group. By manufacturing its own stock and supplying it at cost, the Group deliverers a more cost effective development product through innovative, efficient production methods and removing profits and overheads associated with an external procurement. As a result the Group develops and delivers a better performing home (increased thermal efficiency and improved sound insulation) than a brick and block home for the same money, providing value for money for Accord and customers living in these homes. Accord’s offsite manufacturing method of delivering housing sees high levels of quality control, as all processes are managed and monitored and material waste levels are incredible low, operating at less than 3% waste. Time onsite to erect these homes is also significantly reduced as key processes, such as window installation, are completed in the factory. These benefits see cost and time savings when compared to brick and block house building as well as significantly reduce the environmental impact in construction by as much as 50%. Accord’s timber frame homes are manufactured to ensure a super-insulated product offering residents significantly reduced fuel bills. LoCaL Homes was initially set up to meet the Group’s requirements for the supply of new homes, providing a high quality housing solution and supporting the investment in local people though upskilling and job opportunities. However processes have become increasingly efficient, capacity has increased and a market demand has grown following the success of Accord’s own successes with the LoCaL Homes products. This has seen a proactive approach to selling homes Accord’s fully warranted housing solution to other housing associations. This has generated a new income stream and additional surpluses for the Group. It also allows other Associations to benefit from the unique properties and advantages of Local Homes. Working alongside LoCaL Homes is Accord’s in-house construction team which delivers a fully project managed construction service for the supply of new homes. By managing procurement, programming and site logistics, the in-house team facilitate the development of homes and estates without the cost uplift of working with a major development contractor. Accord’s commitment to growing in-house construction and manufacturing services has led to an average reduction in development and regeneration costs of around 10% per property. This will result in efficiencies of as much as £1m each year for at least the next three years which will support the delivery of an additional 30 new homes. As well as building new homes more efficiently, the Group is committed to improving the environmental performance of its existing homes. Work is carried out in order to improve thermal efficiency of the property exterior and install energy efficient heating systems and solar panels for both electricity and hot water supply. Accord’s retrofit programme delivers improvements which prolong the economic life of the Group’s properties. This ensures customers can live in high quality homes for longer. Financial Statements 2016 43