Agenda item number:
Date of issue:
27 July 2009
6th August 2009
Performance Management Team
Group Performance Summary & Contextual Information Year
Appendix 1 – Strategic Goal Indicators
Appendix 2 – Year End SHA, THA, VHA performance indicators
Appendix 3 – Year End contextual information
1 Purpose of report
To inform Board members of the group performance and company contextual
data at Year End 2008/09.
That Members note the information presented in the attached performance
reports. That Members decide the measurement of the strategic objectives.
The attached summary reports set out Sovereign Group, Sovereign HA,
Twynham HA, and Vale HA:
• Group Strategic performance
• Operational key performance indicators against 2008/09 targets
• Company contextual information.
Sovereign Housing Group Limited is charitable
The Group Strategy 2008/09 incorporates 14 goals aligned to the three
1. Make sure our homes and services improve the quality of life in people’s
2. Optimise our financial strength as a group to build more new homes and
3. Be a leading, influential and sustainable social business.
The goals are designed to be SMART (Specific, Measurable, Achievable,
Relevant, Time-bound), and therefore emphasize measurable outputs, rather
than the broad outcomes that are encompassed in the corporate objectives.
The proposed goals are measured via Key Performance Indicators. All
Associations have action plans set to continually improve the performance
highlighted and are addressing the issues with their boards.
The following table highlights the Indicators included with the Strategy and the
Resident satisfaction with overall service provided
by their Landlord
Upper Quartile performance of agreed Key
Resident satisfaction with the neighbourhoods
they live in
Resident satisfaction with support provided to deal
Resident satisfaction with the quality of their new
Resident satisfaction that their views are being
taken into account
Have set and delivered high common standards
across the Group
The measurement of consistency is derived from the number of standards within
the Orion framework that are met or partially met across the Group
Achieve improved service quality and/ or reduced
Efficiency is the Total Group costs, as per the Group Consolidated Accounts,
divided by the number of properties within the Group. This excludes any
changes in accounting treatment (Impairment) and is a year on year
The Efficiency percentage equates to £26 per property or a total efficiency over
the year of £615,930.
An efficiency target has not been set, but this will be considered as part of the
business planning exercise.
We will provide up to 3,000 new homes in
strategic development areas (cumulative)
Generate £250k from new business and
The strategy to achieve the £250k will begin in April 2010
Homes meet people’s changing need – Resident
satisfaction with quality of home
Homes create increased financial value – Year on
year increase in average property net present
value (existing use value social housing).
A financial value target has not been set, but this will be considered as part of
the business planning exercise.
Achieve 85% staff satisfaction with us as an
We will grow sustainably within our current
operating area to encompass 40,000 homes
Lead and Influence
Responding to 95% of policy consultations
Achieving coverage for 75% of our media
Participating in at least 4 high level policy
We will develop and deliver a group-wide policy
Governance and Regulation
We continue to achieve 4 green lights on the HCA
Operational Key Performance Indicators
Numbers in brackets relate to the reference number on the Appendix attached
Average Re-Let Time for All Rented Dwellings (2)
The number of physical completions has risen from 378 in 2007/08 to 640 in
current year, highlighting the Associations commitment to the development of
our stock. Resident increased desire to move is highlighted by an increase in re-
lets from 529 in 2008/09 to 632 (5.84% of stock). The top three key reasons for
moving are external mutual exchanges; deceased; and moving to private rented
accommodation. The latter has been particularly high in Bristol, accounting for
29% of all moves in the region. Despite the increase in voids and the
introduction of Choice Based Lettings (CBL) in some areas we have kept the
void turnaround time within our target of four weeks. The turnaround time in
Bristol has been relatively high, reflecting new schemes coming into
management at short notice and the introduction of CBL. As CBL becomes
more widespread we are likely to see our turnaround time increase due to the
need to advertise properties, usually for two weeks, before we can begin our
Former tenant arrear (5)
The write off value of £148,780 is under the budget of £163,000. A further
£14,173 was written off against Commercial Property which is not highlighted in
this General Needs report.
Had the allowance for the commercial rent not been
accounted for through this
write off budget, the full sum available would have been used to write off
uncollectable debts from the accounts of ex general needs tenants. The
reduction in the creation of FTA’s is a key element in the work of the eviction
prevention panel mentioned above, alongside the broader objective of reducing
the number of failing tenancies. All FTA’s are closely monitored and recovered
Current tenant arrears (8)
The current arrears balance of £1,113,028 is an increase of £308,689 in the
year. The proportion of projected rent is at a year low of 2.38%, which is not at
target and a decrease on last year’s performance.
In the context of the current financial conditions, job losses and increase in
Housing Benefit applications, with the pressure on processing time that the latter
brings, this performance is good despite being above target. A review of the
Rent Services Strategy has been undertaken and resources realigned to
continue to manage arrears effectively and to maintain our upper quartile
Response repairs (11)
Embedding our ‘appointment driven’ process continues to have a positive effect
in terms of efficiency against jobs completed in target. An overall year-end
position of 94% to target is a significant improvement on the 2007/08 figure of
Anti Social Behaviour (20)
The Operations Manager and ASB Advisor have started a review of the ASB
policy, reporting system and resources deployed in responding to cases. This
reflects concern about both the performance reported in this report and the
relevant resident satisfaction response through the Status Survey. It is
anticipated that this review will result in changes to all aspects of our approach
with the intention of meeting timescales more effectively in future, as well as
driving up satisfaction levels. The latter however is acknowledged nationally as
being difficult to achieve due to the nature of the service and the complexities of
delivering the outcome expectations of residents within the legal and regulatory
framework and the objective of sustaining tenancies wherever possible.
Average Re-Let Time for All Rented Dwellings (2)
THA re-let performance dipped slightly in quarter 4, due to 3 properties
averaging nearly 100 days. Two of these properties (Leyton House and
Palmerston Road) are identified in this year’s annual allocations and lettings
report as hard to let schemes in unpopular areas and so we received a number
of refusals for our offers of accommodation. We received 6 refusals for the
other property at Chestnut Court and a variety of reasons were given.
Aside from the above a concerted effort has been made to let as many
properties as we could before year end which resulted in 30 properties being let
during March. This was more than January and February put together.
Former Tenant Arrears (5) (6)
Former tenant arrears are below target for the year; however we have exceeded
the write off target.
Current Tenant Arrears (8)
Year on year performance has seen Twynham owned stock move from 2.8% to
3.3%, an increase of 0.5% however Sovereign managed stock arrears have
dropped from 6.8% to 5.2%. The combined result has reduced from 4.1% in
07/08 to 3.9% in 08/09.
Average Re-let times (2)
The improvement in the turnaround time from 5 weeks to below 23 days is a
significant improvement over the year and has had a beneficial impact of
improving rental income by £135,000 over the year.
The number of empty properties available at the end of the quarter was 62 but
35 of these had only recently been handed over from development.
Rent Arrears (7)
Expressed as a percentage of the amount due, rent arrears have been steady
throughout the year and a good performance during the final quarter resulted in
the year end figures showing an improved performance over the 2008 position –
down from 3.8% to 3.7%.
The Vale has recently recruited a Tenant Support Officer to assist our recovery
teams in supporting tenants with welfare and benefit issues.
Decent Homes Compliance (10)
There were 208 properties, identified at April 2008 as needing work to bring
them up to Decent Homes standard by the end of March 2009. By this date
there were only 9 properties where works remained outstanding. This was 6
more than last year but our stock has increased by over 900 homes over this
What continues to be an increasing trend is the number of tenants who are
refusing to have works undertaken - 269 properties now fail the decent home
standard because the tenants do not want the work to take place. These include
almost 100 homes where central heating has not been installed. Vale will
continue to respect tenant choice and pick this work up when the property is
Antisocial behaviour (20)
The number of cases being recorded this year (243) shows a significant
increase over the previous year (108). Within this total, the number of reports
due to noise nuisance has almost trebled.
The overall increase in caseload is partly explained by previous underreporting
and a greater focus of attention on this issue over the last twelve months.
The contextual data summarises key indicators drawn from departmental
reports of which the board should be delivered at year end.
A number of complicated staffing changes over the past year have strongly
impacted these performance indicators; as a result some data was not available.
Where this was the case, the performance indicator was recorded as not having
been met. The true numbers are likely to be better but cannot be evidenced.
A reminder about the process of recording these will be sent to all staff involved
in preparing and distributing this documentation to ensure accurate and
complete data gathering occurs going forward.
4 Legal, financial and IT implications
5 Assessment of risk
Monitoring and reporting against Key Performance Indicators (KPIs) helps us to
manage our business and measure and demonstrate our continuous
6 Equalities and diversity and staffing implications