4.5 Metric 5 : Headline social housing cost per unit
The regulatory definition of this metric is : “ The unit cost metric assesses the headline social housing cost per unit as defined by the regulator . The cost measures set out in the metric are unchanged from the metric used in the regulator ’ s 2016 publication “ Delivering better value for money ”. The denominator measures units owned and / or managed ”.
£ 5,000
Metric 5 - Headline social housing cost per unit (£)
£ 4,500 £ 4,000 £ 3,500 £ 3,000 £ 2,500 £ 2,000
2015 2016 2017 2018
Metric 5 - Headline social housing cost per unit
In recent years unit cost analysis has a key measure of operational efficiency in the housing association sector – social housing total activity cost per unit has been a particular area of focus . As part of a commitment to increasing operational efficiency on an ongoing basis , Accord has revised the operating delivery models for core social housing activities . This exercise has resulted in a substantial increase in the overall efficiency of the operating social housing cost base . Since 2015 unit costs for this metric have decreased by £ 429 ( 11.2 %) which aligns with improved social housing operating margins over the same period ( see metric 6 ).
Accord ’ s headline social housing cost per unit metric performance has been benchmarked against peers in the table below . Accord performs significantly below the average (£ 5,033 ) and is amongst the better performers in the peer cohort for this metric .
£ 12,000
Metric 5 - Headline social housing cost per unit (£)
£ 9,000 £ 5,000 £ 3,000 £ 0 |
Accord 2018 |
Accord 2017 |
RP1 ( 2017 ) |
RP2 ( 2017 ) |
RP3 ( 2017 ) |
RP4 ( 2017 ) |
RP5 ( 2017 ) |
RP6 ( 2017 ) |
RP7 ( 2017 ) |
RP8 ( 2017 ) |
RP9 ( 2017 ) |
Metric 5 - Headline social housing cost per unit |
Did Accord meet its VFM target / objectives ?
Yes – target unit costs for delivering social housing activities informed the 2017 / 18 budget setting process . These targets , as calculated from the approved budget , have been achieved in the 31 March 2018 year-end financial results . These targets have been achieved against a backdrop of both a period of higher than anticipated cost-base inflation and ongoing 1 % year-onyear rent reductions for social housing activities .
Future performance targets for this metric
Despite a period of increased cost base inflation and continuing 1 % rent reductions Accord remains committed to achieving further operating efficiencies in the delivery of core social housing activities . This will be demonstrated by continuing reductions in the overall headline social housing cost per unit metric measurement .
Financial Statements 2018 17