Facilities Services Provision - Housing Associations Market - UK 2009-2013

Table of Contents

Local Authority Housing Market report

UPDATE CONTENTS and LIST OF TABLES & CHARTS

1. INTRODUCTION 4

2. SUMMARY AND FUTURE PROSPECTS 6

• 2.1 EXECUTIVE SUMMARY 6
• 2.2 FUTURE PROSPECTS 9

3. ECONOMIC ENVIRONMENT 10

• 3.1 GDP 10
• 3.2 INFLATION & INTEREST RATES 11
• 3.3 UNEMPLOYMENT 12
• 3.4 HOUSEHOLD CONSUMPTION 12
• 3.5 HOUSING & CONSTRUCTION 13
• 3.6 POPULATION PROFILE 14
• 3.7 CONCLUSIONS 15

4. FACILITIES MANAGEMENT OUTSOURCING MARKET 17

• 4.1 DEFINITION 17
• 4.2 FM OUTSOURCING SECTORS 18
• 4.3 LOCAL GOVERNMENT FM OUTSOURCING MARKET 19
• 4.4 KEY MARKET INFLUENCES 20
• 4.4.1 Legislation 20

5. THE SOCIAL HOUSING SECTOR 23

• 5.1 SOCIAL HOUSING MARKET DEFINITION 23
• 5.2 UK SOCIAL HOUSING MARKET 24
• 5.3 SOCIAL HOUSING MARKET BY COUNTRY 25
• 5.4 SOCIAL HOUSING MARKET BY OWNERSHIP 26
• 5.5 KEY SECTOR INFLUENCES 27
• 5.5.1 Decent Homes Standard 27
• 5.5.2 Social Housing Construction 28

6. FACILITIES SERVICES PROVISION IN THE LOCAL AUTHORITY HOUSING SECTOR 33

• 6.1 SECTOR STRUCTURE 33
• 6.2 ARMS LENGTH MANAGEMENT ORGANISATIONS 33
• 6.3 PROCUREMENT OF GOODS & SERVICES 34
• 6.4 FACILITIES MANAGEMENT PROVISION 37
• 6.4.1 Market Size Local Authority Housing Maintenance and Improvement 38
• 6.4.2 Type of Contracts Out-sourced 44
• 6.4.3 Work Activity Types 46
• 6.4.4 Expenditure on Work Activities 48
• 6.4.5 Interest in Out-sourcing Facilities Management 49

7. LOCAL AUTHORITY HOUSING EXPENDITURE & STOCK 51

• 7.1 EXPENDITURE ON HOUSING 51
• 7.2 EXPENDITURE ON HOUSING BY COUNTRY 52
• 7.3 COSTS FOR MANAGEMENT AND MAINTENANCE IN LOCAL AUTHORITY HOUSING 53
• 7.4 HOUSING STOCKS OWNED BY LOCAL AUTHORITIES 54
• 7.4.1 Housing Stocks Owned by Local Authorities 54
• 7.4.2 Housing Stocks Managed ALMOs 55
• 8. CONTRACTORS REVIEW 57
• 8.1 BACKGROUND 57
• 8.2 COMPANY PROFILES 58

TABLES AND CHARTS

• CHART 1 OVERALL EXPENDITURE ON LOCAL AUTHORITY PROPERTIES VALUE ESTIMATES 2008/09 £9.6 BILLION. 7
• CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2013 11
• CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2013 13
• CHART 4 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 CENSUS (' 000) 15
• CHART 5 UK FM SERVICES MARKET SHARE BY VALUE - 2008 18
• TABLE 6 UK OVERALL LOCAL AUTHORITY FM OUTSOURCING MARKET 2002-2013 (CURRENT PRICES) 19
• CHART 7 UK SOCIAL HOUSING MARKET - TOTAL DWELLINGS 2003-2013 24
• CHART 8 UK SOCIAL HOUSING MARKET BY COUNTRY - 2008 25
• CHART 9 UK SOCIAL HOUSING DWELLING STOCKS BY OWNERSHIP, 2002-2008 26
• TABLE 10 NUMBERS OF NON-DECENT LOCAL AUTHORITY DWELLINGS IN ENGLAND (X1000) - 2001/08 28
• TABLE 11 UK SOCIAL HOUSING COMPLETIONS BY OWNERSHIP (' 000), 2003-2013 29
• TABLE 12 CENTRAL GOVERNMENT HOUSING CAPITAL PROVISION IN ENGLAND 2005/06 - 2009/10 (£M) - SPLIT BY SECTOR / PROGRAMME. 31
• CHART 13 MIX OF ORGANISATIONS MANAGING THE LOCAL AUTHORITIES' HOUSING STOCK - 2008 34
• TABLE 14 OVERALL EXPENDITURE ON LOCAL AUTHORITY PROPERTIES VALUE ESTIMATES 2008/09 £M. 38
• TABLE 15 EXPENDITURE ON FACILITIES SERVICES IN LA HOUSING 2008/09. 39
• CHART 16 ESTIMATED TOTAL EXPENDITURE ON HOUSING AND COMMUNITY AMENITIES 2008 -2013 42
• CHART 17 ESTIMATED CHANGE IN RATIO OF TFM TO BUNDLED CONTRACT PLACEMENT BY EXPENDITURE 2008 -2013 43
• CHART 18 MIX OF CONTRACT TYPE PLACED FOR HOUSING FM SERVICES - 2008 44
• CHART 19 PERCENTAGE OF BUNDLING BY WORK ACTIVITY (%) 47
• CHART 20 MIX OF TYPES OF CONTRACTS PLACED FOR FACILITIES SERVICES PROVISION TO LOCAL AUTHORITY HOUSING 2008/09 BY VALUE 48
• TABLE 21 UK EXPENDITURE ON HOUSING AND COMMUNITY AMENITIES 2003/2009 - £ MILLIONS 51
• CHART 22 EXPENDITURE ON HOUSING AND COMMUNITY AMENITIES BY COUNTRY - 2008/09 53
• TABLE 23 ESTIMATED COSTS FOR MANAGEMENT AND MAINTENANCE IN LOCAL AUTHORITY HOUSING (2006/07) 54
• TABLE 24 SOCIAL HOUSING STOCK NUMBERS OWNED BY LOCAL AUTHORITIES 55
• TABLE 25 SOCIAL HOUSING STOCK NUMBERS MANAGED BY ARMS LENGTH MANAGEMENT ORGANISATIONS 56

Housing Association Market report

REPORT CONTENTS and LIST OF TABLES & CHARTS

1. INTRODUCTION 5

2. SUMMARY AND FUTURE PROSPECTS 6

• 2.1 EXECUTIVE SUMMARY 6
• 2.2 FUTURE PROSPECTS 8

3. ECONOMIC ENVIRONMENT 10

• 3.1 GDP 10
• 3.2 INFLATION & INTEREST RATES 11
• 3.3 UNEMPLOYMENT 12
• 3.4 HOUSEHOLD CONSUMPTION 12
• 3.5 HOUSING & CONSTRUCTION 13
• 3.6 POPULATION PROFILE 14
• 3.7 CONCLUSIONS 15

4. FACILITIES MANAGEMENT OUTSOURCING MARKET 17

• 4.1 DEFINITION 17
• 4.2 FM OUTSOURCING SECTORS 18
• 4.3 LOCAL GOVERNMENT FM OUTSOURCING MARKET 19
• 4.4 KEY MARKET INFLUENCES 20
• 4.4.1 Legislation 20

5. THE SOCIAL HOUSING SECTOR 23

• 5.1 SOCIAL HOUSING MARKET DEFINITION 23
• 5.2 UK SOCIAL HOUSING MARKET 24
• 5.3 SOCIAL HOUSING MARKET BY COUNTRY 25
• 5.4 SOCIAL HOUSING MARKET BY OWNERSHIP 26
• 5.5 KEY SECTOR INFLUENCES 27
• 5.5.1 Decent Homes Standard 27
• 5.5.2 Social Housing Construction 28

6. FACILITIES SERVICES PROVISION IN THE HOUSING ASSOCIATION SECTOR 32

• 6.1 SECTOR STRUCTURE 32
• 6.2 PROCUREMENT OF GOODS & SERVICES 32
• 6.3 FACILITIES MANAGEMENT PROVISION 34
• 6.3.1 Market Size Housing Association Maintenance and Improvement 34
• 6.3.2 Type of Contracts Out-sourced 41
• 6.3.3 Work Activity Types 43
• 6.3.4 Expenditure on Work Activities 45
• 6.3.5 Interest in Out-sourcing Facilities Management 46

7. HOUSING ASSOCIATION FINANCE, EXPENDITURE & STOCK 47

• 7.1 PRIVATE FINANCE 47
• 7.2 OPERATING AND MAINTENANCE COSTS OF HOUSING ASSOCIATION PROPERTIES 48
• 7.3 HOUSING STOCKS MANAGED BY HOUSING ASSOCIATIONS 51

8. CONTRACTORS REVIEW 53

• 8.1 COMPANY PROFILES 54

TABLES AND CHARTS

• CHART 1 OVERALL EXPENDITURE ON HOUSING ASSOCIATIONS PROPERTIES VALUE ESTIMATES 2008/09 £7.5 BILLION. 7
• CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2013 11
• CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2013 13
• CHART 4 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 CENSUS (' 000) 15
• CHART 5 UK FM SERVICES MARKET SHARE BY VALUE - 2008 18
• TABLE 6 UK LOCAL AUTHORITY FM OUTSOURCING MARKET 2002-2013 (CURRENT PRICES) 19
• CHART 7 UK SOCIAL HOUSING MARKET - TOTAL DWELLINGS 2003-2013 24
• CHART 8 UK SOCIAL HOUSING MARKET BY COUNTRY - 2008 25
• CHART 9 UK SOCIAL HOUSING DWELLING STOCKS BY OWNERSHIP, 2002-2008 26
• TABLE 10 UK SOCIAL HOUSING COMPLETIONS BY OWNERSHIP (' 000), 2003-2013 29
• TABLE 11 CENTRAL GOVERNMENT HOUSING CAPITAL PROVISION IN ENGLAND 2005/06 - 2009/10 (£M) - SPLIT BY SECTOR / PROGRAMME. 31
• TABLE 12 EXPENDITURE ON HOUSING ASSOCIATION PROPERTIES VALUE ESTIMATES 2006-08 £M. 35
• TABLE 13 EXPENDITURE ON MAINTENANCE, MAJOR REPAIRS VALUE ESTIMATES 2008/09. 36
• CHART 14 ESTIMATED TOTAL EXPENDITURE ON HOUSING ASSOCIATION REPAIR, MAINTENANCE AND MAJOR REPAIR 2008 -2013 39
• CHART 15 ESTIMATED CHANGE IN RATIO OF TFM TO BUNDLED CONTRACT PLACEMENT BY EXPENDITURE 2008 -2013 40
• CHART 16 MIX OF CONTRACT TYPE PLACED FOR HOUSING FM SERVICES BY HOUSING ASSOCIATIONS - 2008 41
• CHART 17 PERCENTAGE OF BUNDLING BY WORK ACTIVITY (%) 44
• CHART 18 MIX OF TYPES OF CONTRACTS PLACED FOR FACILITIES SERVICES PROVISION TO HOUSING ASSOCIATION PROPERTIES 2008/09 BY VALUE 45
• TABLE 19 TOTAL PRIVATE FINANCE ENGLAND - 2003 - 2008 (£BN) 48
• TABLE 20 ESTIMATED OPERATING AND MAINTENANCE COSTS FOR A HOUSING ASSOCIATION PROPERTY 49
• CHART 21 HOUSING ASSOCIATION EXPENDITURE ON MAINTENANCE AND MAJOR REPAIRS OF ITS PROPERTIES 2003-2008 50
• TABLE 22 HOUSING ASSOCIATION GROUPS IN ENGLAND BY STOCK OWNED 51
• CHART 23 MIX OF TYPES OF HOUSING ASSOCIATION 52