HCA proposes new Value for Money “code of practice”

In January of this year a sector scorecard was launched with the aim of better measuring efficiency and allowing comparison between organisations in the social housing sector. The scorecard was devised by a team of fifteen housing associations and headed by the chief executive of Home Group, Mark Henderson.

Speaking earlier in the year about the scorecard he said “Formulating the 15 indicators is a great starting point, but what we really need now is for the wider sector to embrace this.” 

It now seems that his voice is being heard by the regulator. In May the Social Housing Finance Conference met with a focus on “creating capacity, driving efficiency and managing risk.”

At the conference, Julian Ashby, chair of the Homes and Communities Agency said the committee was due to consult on a new standard and propose a suite of metrics drawn from the fifteen indicators that make up the sector scorecard. He said that whilst no additional requirements would be announced, a code of practice would be introduced which would help associations better understand how to comply with the current system. The Value for Money standard has previously been criticised for lacking clarity and focus and it was this that prompted the pursuit of an alternate, more rounded and inclusive measure.

John Hudson, Chief Financial Officer at Home Group, also provided an update on the progress of the sector scorecard announcing that 300 associations had now signed up to the scheme.

As of yet there is no word on the outcome of the consultation but the high adoption rate of the scorecard suggests it will be welcomed by the sector.