UK social landlords spend £3bn a year on responsive repairs
Social landlord expenditure on responsive repairs was worth £3 billion to the UK economy in 2014/15, data analysis published by HouseMark has estimated.
Using its detailed breakdown of costs, the data provider found that around 77 per cent of social landlords’ responsive repairs expenditure pays for service provision (eg labour and materials) and 23 per cent pays for management of the service.
Around half the landlords participating in the benchmarking exercise use in-house repair teams (DLOs). In 2014/15, the ratio of management staff at these organisations was 1.9 WTEs per 1,000 properties. Those who contract out service provision directly employed 2.1 management staff per 1,000 properties.
Social housing tenants report, on average, three or four repairs a year – and have done so for at least the last five years. This equates to around 18m repairs across the UK, each year. Comparing this to costs, HouseMark found that real expenditure on responsive repairs reduced by around 4.5 per cent over the same period.
According to the analysis, responsive repairs costs differ considerably by location. In 2014/15 average repair costs in London (£171) were around 50 per cent higher at the median than those in the East Midlands (£115) and the North West (£116). The average cost of a responsive repair in Scotland was £121.
Across the country, HouseMark found that more than eight in ten tenants were satisfied with their landlord’s repair service. This figure has changed little in the last five years. While satisfaction cannot be linked to expenditure, there are some correlations between satisfaction and performance measures such as keeping appointments with tenants and completing the repair at the first visit.
Scottish landlords’ repairs satisfaction rates were the highest in the UK in 2014/15. Measured using HouseMark’s Star methodology, the median rate of tenants’ satisfaction with their landlord’s repairs service was 86.2 per cent in Scotland. This compares to 83.3 per cent to 86.0 per cent across the north of England, and 69.0 per cent in London.
HouseMark data analysis manager, John Wickenden, said: “Compared to five years ago, our members are carrying out similar numbers of repairs at less cost without affecting tenant satisfaction levels. While the regional differences warrant further research, social landlords are making clear efficiency gains running their responsive repairs services. This is something the sector has done on its own, with little intervention or oversight from regulatory bodies. This has to represent better value for money for tenants and taxpayers alike.”