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