The Sector Risk Profile (SRP) for 2022 was released last week and safe to say, it is not for the faint hearted! The near 9,000 word report delivers key insight into the sectors toughest challenges and clearly sets out the risks that registered providers are and will soon face.
The report starts by highlighting the significant challenges faced by all Registered Providers (RPs) and their tenants. These include the rent cap, high energy costs and supply chain disruption, which are further worsened by shortages in labour and skills, not to mention the increasing need to provide support to vulnerable tenants. In a nutshell, both RPs and Local Authorities have it all to do with little relief. Ultimately, this leads to the sobering reality that “some boards will need to make difficult decisions to maintain financial resilience whilst delivering essential services”.
To help you navigate this difficult time, and to provide a slightly shorter read, we have reviewed the full report and pulled out some of the key messages we believe Boards and Leaders need to consider. We have condensed our findings into six key questions.
1. Do you have confidence in your data?
This is the number one building block for ensuring successful asset management and compliance. When we say data, we mean stock figures, stock condition information and all compliance data associated with your properties. Feeling overwhelmed? We can help.
2. Are you clear on your organisation’s strategic objectives and direction?
It is imperative that Boards have a clear view for their organisation to ensure they can safely navigate the current economic climate. There may well be a toss-up between development and ensuring properties are safe; are you comfortable with where your organisation needs to focus its attention? There are stakeholders who will need assurance that you do.
3. Are you operating as efficiently as possible, to make sure you can focus on what matters most?
Effective policies, procedures, process maps and tenant communications all go a long way in increasing efficiency within organisations, which is one of the key areas we find problems with when working with clients. You must have clear processes which are easily followed and understood. This ensures that you are working smartly to focus more time ensuring essential services are delivered.
4. Are you working with up-to-date stock information which supports your asset management strategy?
The Building Safety Act 2022, evolving energy efficiency standards, decarbonisation and net zero agenda are just some of the conflicting priorities that Boards need to carefully manage, all of which require quality stock condition information. We can help you find clarity on what this means for you, click here for more information.
5. Are you ready for the new, proactive consumer regulation regime?
We have previously highlighted the requirements in our tenant satisfaction measures blog. The SRP urges RPs not to wait until the regime is formally introduced and to act now. It is important that providers are confident that there are systems and mitigations in place, to ensure adherence with the regime and to prevent risk to service delivery.
6. Do you have a plan to clearly communicate your challenges and decisions to your stakeholders?
The reputational impact from failings in the sector is increasing. This is due to high profile instances of poor conditions, service delivery and complaint handling failings, meaning that any additional shortcomings may have significant implications for your organisation. Where difficult tradeoffs have to be made, organisations must ensure that they clearly communicate decisions and rationale, whilst keeping the stakeholder’s expectations at the heart of their message.
How Pennington Choices can help…
Our diverse and experienced consultancy team is made up of technical experts working in property compliance, asset management, repairs, and business strategy. We will work closely with you to address any of the questions that the SRP may have sparked, helping to ensure you are ready ASAP.
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