As the housing market changes, housing organizations are looking to make their operations more economical.
During a growing cost of living crisis, low-income households and those on any means-tested benefit, have grown to rely heavily upon housing associations.
Families on Universal Credit, Working Tax Credit or housing benefits are particularly affected by welfare changes and economic uncertainty.
The primary role of any housing association is to manage its housing stock.
However, housing associations’ responsibilities are far more extensive than merely providing housing, as they also address the broader needs of their tenants.
Due to the reduction in local authority housing supply, these living support challenges are magnified, causing housing associations to look for new ways to save money.
In what ways do housing associations make their operations cost-effective?
Funding remains the greatest challenge for housing associations.
In order to set rent each year, housing associations have access to a variety of resources.
These include affordable housing principles, periodic reviews of service charges, energy advice, data tools, and UK Government rent-setting models that emphasize fairness.
Social rent may increase by a maximum of the Consumer Price Index for September 2022, plus 1% from April 2023 under the current Rent Standard.
When deciding the amount of increase in rents, housing associations should balance affordability for tenants (including heating costs, council tax etc) against their own expenditure.
On one hand, this may mean taking into account things like the discretionary housing payment, household support fund, warm home discount, cost of living payment or energy bills support scheme.
On the other, making changes to their procurement processes and investing in energy efficiency measures can make homes more affordable.
Inflation-proofing homes
Investment in existing homes is a good idea as part of a broader cost-cutting plan.
A lot of providers are going to spend money on existing housing in the next few years to meet sustainability, safety, and home energy efficiency targets.
The foundation for these efforts must be robust data on energy bill prices, council tax support and housing conditions, knowledge of policy developments in these areas, and appropriate engagement with tenants.
Recent research by Gowling WLG found that 92% of housing associations felt under pressure to cut costs and maintain standards.
In the same study, approximately 74% said that property repairs and maintenance would be the first budget line cut.
This does not, however, mean simply spending less in this area. A more efficient repair and maintenance program could save housing associations around £1.6 billion, according to Vantage Business Solutions.
There is also still much to be done to lower energy costs and increase energy efficiency in social housing.
What suppliers can do to appeal to housing associations
A myriad of opportunities exists for suppliers, who provide affordable home products and services to housing associations.
Promotions through direct marketing, such as email and telemarketing, alongside social media campaigns, can help specific product and service providers target the sector.
In order to target housing associations with your marketing campaigns, More Than Words Marketing can provide you with a bespoke list of housing associations containing 1,483 of the 1,500 registered social landlords in the UK.
We know that budgeting and resource management is a key priorities for all organizations in the social housing sector, today more than ever before.
Our best advice is that these campaigns should take into account the specific needs of the housing association, and how your business, as a supplier, can offer a valuable solution that differs from what is already being offered by your competitors.
Successful businesses position themselves as experts in their fields, who can offer advice and support businesses in making better choices.
Local authorities know that they can rely on a supplier’s expertise to provide maximum value for money, even during a time of high energy prices and fuel poverty.
Include testimonials and links to case studies in your marketing messages to ensure that prospects are able to see where you excel.
A housing association usually picks suppliers based on overall value for money as well as reliability.
Interested in learning more about our list of housing associations? Please call us at 0330 010 8300.
