Savills had worked with Incommunities in 2009 to evaluate the financial performance of their housing. As a result of that some 2,700 properties with poor performance were taken out of charge, improving funding capacity and a programme of demolition had been targeted at non-economic stock.
Incommunities was keen to update and expand the analysis to include a measure of social return, as well as an understanding of the wider housing market. The aim was to develop an asset management strategy that "future proofed" the stock.
Savills worked with Incommunities to update the financial analysis, using data from the current asset management and housing management systems. The valuation team provided information on the wider housing market including open market values and rents, while also working with a broader team of neighbourhood managers to understand the extent to which assets were meeting the organisation's social objectives. This built up an understanding of asset performance, an informed neighbourhood management and community investment.
With the regulator increasingly looking for assurances from registered providers that they are achieving value for money and optimising returns from housing stock, the work that Savills did with Incommunities was critical in understanding the performance of our assets and informing active asset management decisions relating to under-performing stock.
J. Lester, Assistant Chief Executive, Assets, Incommunities
The financial analysis showed a considerable improvement since 2009, outperforming expectations from that time. This demonstrated the value of an active asset management approach. The updated analysis provided information to support the plans to transform assets through development and regeneration including the demolition of a number of high cost low demand homes to be replaced with new high demand homes.
The understanding of performance, alongside the wider housing market helped Incommunities to develop strategies to manage demand risk which was beginning to be evident from the private rented sector. The broader analysis against social objectives has been used to support strategies to deliver Incommunities' objective "to provide neighbourhoods that are safe, clean and desirable places to live in".
Results were presented to the Board and the analysis helped to generate engagement from the Board, and the wider organisation, in asset and neighbourhood strategies going forwards.