Facilities Services Provision - Social Housing Market Report - UK 2012-2016 AnalysisAMA ResearchAugust 31, 2012 94 Pages - SKU: AJLA4872175 |
Additional Information
The social housing sector is arguably one of the least mature in terms of FS outsourcing. Facilities services outsourcing in the social housing sector grew year on year to 2008, influenced by the buoyant state of the economy, as well as the public sector developments funded. However, the market has declined in recent years, primarily due to the economic downturn and Government spending cuts. In 2011 it is estimated that the FS outsourcing market in the social sector was worth around £8.4bn excluding management costs.
The changing structure of the social housing market and pressures to achieve ‘best value for money’ is impacting on the facilities services provision within the social housing sector. A wide range of approaches are currently being adopted by the Local Authorities (LAs) and Housing Associations (HAs).
The facilities services provision market in the social housing sector has changed significantly in recent years as Connaught and Rok went into administration in 2010, with others following such as Kinetics Group. Social housing providers are now looking for less risk, greater stability and control over operations. There appears to have been a shift in the types of contracts placed, with smaller bundled packages being placed and often involving more than one contractor.
The vast majority of LAs and HAs retain the overall management of the housing stocks but sub-contract out at least some of the work to external contractors. ‘Bundled’ contracts (the delivery of multiple services under a single contract) account for around a third of the housing expenditure in both the Local Authorities and Housing Associations sectors. Total facilities service contracts remain a very small proportion of contracts placed, with individual & in-house delivery being the preferred option (as shown in the above chart).
Work activities that are often bundled include responsive repairs and planned maintenance; whilst (within our definitions) home improvement contracts are generally placed as individual contracts. The latter, in recent years, have been carried out under the Decent Homes Programme, which is reaching its final stages with just 13% of Local Authorities and under 3% of Housing Association dwellings being non-decent. Current expenditure (routine and planned maintenance) accounts for the largest expenditure on social housing, although trade sources have indicated that there has been a reduction in the level of planned maintenance in recent years.
Government spending cuts has seen many FS providers operating in the social housing sector seek to reduce their exposure to capital expenditure in favour of day-to-day maintenance work.
The report provides a detailed analysis of expenditure and facilities services provision within the social housing sector, broken down into the Local Authorities / ALMOs and Housing Associations /registered providers sectors.
- 1. INTRODUCTION
- 1.1 INTRODUCTION
- 1.2 SOURCES OF INFORMATION
- 2. SUMMARY AND FUTURE PROSPECTS
- 2.1 EXECUTIVE SUMMARY
- 2.2 FUTURE PROSPECTS
- 3. ECONOMIC ENVIRONMENT
- 3.1 GDP
- 3.2 INFLATION & INTEREST RATES
- 3.3 UNEMPLOYMENT
- 3.4 HOUSEHOLD CONSUMPTION
- 3.5 HOUSING & CONSTRUCTION
- 3.6 STERLING
- 3.7 POPULATION PROFILE
- 3.8 CONCLUSIONS
- 4. FACILITIES SERVICES OUTSOURCING MARKET
- 4.1 DEFINITION OF FACILITIES SERVICES
- 4.2 FACILITIES MANAGEMENT OUTSOURCING SECTORS
- 4.3 CENTRAL & LOCAL GOVERNMENT FM OUTSOURCING MARKET
- 4.4 FACILITIES SERVICES PROVISION IN THE SOCIAL HOUSING SECTOR
- 4.4.1 Definition of Facilities Services
- 4.4.2 Facilities Services Provision in Social Housing Sector
- 4.5 KEY MARKET INFLUENCES ON THE SOCIAL HOUSING FM SECTOR
- 4.5.1 Motivation for Outsourcing
- 4.5.2 Impact of the Administration of Key Companies in the Sector
- 4.5.3 Decent Homes Standard
- 4.5.4 Impact of the ‘Green Deal’
- 4.5.5 Social Housing Construction
- 4.5.6 Legislation
- 5. FACILITIES SERVICES PROVISION IN THE LOCAL AUTHORITY HOUSING SECTOR
- 5.1 MARKET SIZE
- 5.2 ARMS LENGTH MANAGEMENT ORGANISATIONS
- 5.3 FACILITIES SERVICES PROVISION
- 5.3.1 Local Authority Housing Maintenance & Improvement Market Size
- 5.3.2 Type of Contracts Out-sourced by Local Authorities
- 5.3.3 Types of Work Activities Bundled in LA Contracts
- 5.3.4 Expenditure on Work Activities in LA housing
- 5.3.5 Interest in Out-sourcing Facilities Services - LA
- 5.3.6 Future Prospects in Out-sourcing Facilities Management in LA Sector
- 5.4 PROCUREMENT OF GOODS & SERVICES
- 6. FACILITIES SERVICES PROVISION IN THE HOUSING ASSOCIATION HOUSING SECTOR
- 6.1 MARKET SIZE HOUSING ASSOCIATION MAINTENANCE AND IMPROVEMENT
- 6.2 TYPE OF CONTRACTS OUT-SOURCED BY HOUSING ASSOCIATIONS
- 6.3 TYPES OF WORK ACTIVITIES BUNDLED IN HA CONTRACTS
- 6.4 EXPENDITURE ON WORK ACTIVITIES IN HA HOUSING
- 6.5 INTEREST IN OUT-SOURCING FACILITIES SERVICES - HA
- 6.6 FUTURE PROSPECTS IN OUT-SOURCING FACILITIES MANAGEMENT IN HA SECTOR
- 7. SOCIAL HOUSING SECTOR, EXPENDITURE & STOCK
- 7.1 SOCIAL HOUSING MARKET DEFINITION
- 7.2 UK SOCIAL HOUSING MARKET DWELLINGS
- 7.3 SOCIAL HOUSING MARKET BY COUNTRY
- 7.4 SOCIAL HOUSING MARKET BY OWNERSHIP
- 7.5 LOCAL AUTHORITIES – EXPENDITURE & STOCK
- 7.5.1 Expenditure on Housing
- 7.5.2 Expenditure on Housing by Country
- 7.5.3 Costs for Management and Maintenance in Local Authority Housing
- 7.5.4 Housing Stocks Owned by Local Authorities
- 7.6 HOUSING ASSOCIATIONS
- 7.6.1 Public Sector Funding
- 7.6.2 Private Sector Funding
- 7.6.3 Operating and Maintenance Costs of Housing Association Properties
- 7.6.4 Housing Stocks Managed by Housing Associations
- 8. FACILITIES SERVICES CONTRACTORS REVIEW
- 8.1 BACKGROUND
- 8.2 COMPANY PROFILES
- List of Tables and Charts
- TABLE 1: FACILITIES SERVICES PROVISION IN SOCIAL HOUSING MARKET 2006-2011, LOCAL AUTHORITIES, HOUSING ASSOCIATIONS BY VALUE (£M)
- CHART 2: INTEREST RATES AND INFLATION (CPI) FROM 1992-2016
- CHART 3: PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2016
- TABLE 4: EXCHANGE RATE FLUCTUATIONS 2008-2014 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES
- CHART 5: AGE DISTRIBUTION OF THE RESIDENT UK POPULATION MID-2010 (‘000)
- CHART 6: UK FM SERVICES MARKET SHARE BY VALUE - CORPORATE, HEALTH/EDUCATION AND GOVERNMENT 2011
- TABLE 7: UK CENTRAL & LOCAL GOVERNMENT FM MARKET 2006-2016 (CURRENT PRICES)
- CHART 8: % MIX OF FM END USER MARKET BY VALUE 2011 – HOUSING, LOCAL GOVT, CENTRAL GOVT.
- TABLE 9: FACILITIES SERVICES PROVISION IN SOCIAL HOUSING MARKET 2006-2016, BY VALUE LAS & HAS (£M)
- TABLE 10: CURRENT & CAPITAL EXPENDITURE MIX OF FACILITIES SERVICES PROVISION IN SOCIAL HOUSING MARKET 2006-2011, BY VALUE (%)
- TABLE 11: NUMBERS OF NON-DECENT LOCAL AUTHORITY DWELLINGS IN ENGLAND (X1000) - 2001/11
- TABLE 12: ENGLAND – LOCAL AUTHORITY FORECAST OF DWELLINGS TO BE MADE DECENT 2011-15
- CHART 13: UK SOCIAL HOUSING COMPLETIONS 2003-2011
- CHART 14: FACILITIES SERVICES PROVISION IN LOCAL AUTHORITY SECTOR, BY VALUE – 2006-2016
- CHART 15: MIX OF ORGANISATIONS MANAGING THE LOCAL AUTHORITIES’ HOUSING STOCK – ALMOS VS LAS 2011
- TABLE 16: OVERALL EXPENDITURE ON LOCAL AUTHORITY PROPERTIES – MANAGEMENT, CURRENT & CAPITAL VALUE ESTIMATES 2011 £M.
- CHART 17: EXPENDITURE ON FACILITIES SERVICES BY TYPE OF CONTRACT PLACED IN LA HOUSING – BUNDLED, TFS, OTHER 2011
- CHART 18: PERCENTAGE OF BUNDLING BY WORK ACTIVITY – PLANNED, VOIDS, REACTIVE, IMPROVEMENTS (%)
- CHART 19: MIX OF WORK ACTIVITIES TO LOCAL AUTHORITY HOUSING 2010/11 BY VALUE - PLANNED, VOIDS, RESPONSIVE, IMPROVEMENTS
- CHART 20: ESTIMATED TOTAL EXPENDITURE ON LA HOUSING, 2011 -2016
- CHART 21: ESTIMATED CHANGE IN RATIO OF THE TYPES OF LA CONTRACT PLACEMENT BY EXPENDITURE, TFS, BUNDLED, OTHER 2011 -2016
- CHART 22: FACILITIES SERVICES PROVISION IN HOUSING ASSOCIATIONS, BY VALUE – 2006-2016
- TABLE 23: EXPENDITURE ON HOUSING ASSOCIATION PROPERTIES £M VALUE ESTIMATES - MANAGEMENT, PLANNED, ROUTINE, MAJOR REPAIRS 2009-11
- CHART 24: EXPENDITURE ON FACILITIES SERVICES BY TYPE OF CONTRACT PLACED IN HA HOUSING – TFS, BUNDLED, OTHER 2011
- CHART 25: PERCENTAGE OF BUNDLING BY WORK ACTIVITY IN HA HOUSING – PLANNED, VOIDS, REACTIVE ETC (%)
- CHART 26: MIX OF TYPES OF CONTRACTS PLACED FOR FACILITIES SERVICES PROVISION TO HA PROPERTIES - RESPONSIVE, PLANNED ETC 2010/11 BY VALUE
- CHART 27: ESTIMATED TOTAL EXPENDITURE ON HA HOUSING: 2011 -2016
- CHART 28: ESTIMATED CHANGE IN RATIO OF THE TYPES OF CONTRACT PLACEMENT BY EXPENDITURE, HA 2011 -2016
- CHART 29: UK SOCIAL HOUSING MARKET – TOTAL DWELLING STOCK M 2006-2016
- CHART 30: UK SOCIAL HOUSING MARKET BY COUNTRY - 2010
- CHART 31: UK SOCIAL HOUSING DWELLING STOCK BY OWNERSHIP, LA, HA 2002-2011
- TABLE 32: UK EXPENDITURE ON LOCAL AUTHORITY HOUSING AND COMMUNITY AMENITIES – CURRENT, CAPITAL 2006/2012 - £M
- CHART 33: EXPENDITURE ON LA HOUSING AND COMMUNITY AMENITIES BY UK DEVOLVED ADMINISTRATION – 2011/12
- TABLE 34: AVERAGE OPERATING & MAINTENANCE COSTS PER LOCAL AUTHORITY PROPERTY - MANAGEMENT, ROUTINE, MAJOR 2010/11
- TABLE 35: SOCIAL HOUSING STOCK NUMBERS OWNED BY LARGEST LOCAL AUTHORITIES
- TABLE 36: SOCIAL HOUSING STOCK NUMBERS MANAGED BY MAJOR ARMS LENGTH MANAGEMENT ORGANISATIONS
- TABLE 37: SUMMARY OF HCA FUNDING ALLOCATIONS & ACTIVITY: ENGLAND 2011-2015 – AFFORDABLE HOUSING PROGRAMME / DECENT HOMES
- TABLE 38: AVERAGE OPERATING AND MAINTENANCE COSTS FOR A HOUSING ASSOCIATION PROPERTY – MANAGEMENT, PLANNED, MAJOR 2010/11
- CHART 39: HOUSING ASSOCIATION EXPENDITURE ON MAINTENANCE AND MAJOR REPAIRS OF ITS PROPERTIES MARCH 2004-2011 (£ M)
- TABLE 40: HOUSING ASSOCIATION GROUPS IN ENGLAND BY STOCK OWNED
- CHART 41: MIX OF TYPES OF HOUSING ASSOCIATION, 2006-2011
- CHART 42: UK MARKET SHARES IN FACILITIES SERVICES PROVISION IN SOCIAL HOUSING SECTOR BY VALUE 2011
More Housing reports by AMA Research
More United Kingdom Housing reports
More United Kingdom reports
Research assistance
Related Markets
- Business Services & Administration
- Business Outsourcing
- Corporate Services
- Facilities Management
- Public Sector
- Housing

