The annual figures, collated from data provided by 544 associations, show that the weekly cost of repairs rose by 13.7% on last year, more than four times the rate of inflation. Weekly management costs increased by 8.3%, almost three times the rate of inflation.
The data have caused the corporation to announce its own review of the way in which performance indicators are gathered and how they are interpreted.
The figures also show that almost one-quarter of associations' stock fails the decent homes standard. This was a 3.5% rise on last year – although this was the first year that answering this question was compulsory.
Seen as a key guide to the sector's performance, the figures have been released at a sensitive time: the Treasury has just started a review of associations' efficiency.
The Audit Commission is understood to be carrying this out as part of a government drive to achieve better performance in the sector.
The news follows July's damning report by housing performance specialists HouseMark which concluded that most associations failed to meet government targets for repairs and maintenance (HT July 11, page 7).
But Clare Miller, director of regulation policy at the Housing Corporation, played down the significance of the increases.
"There is an increasing trend in expenditure on both repairs and management," she said. "It is also clear that associations are reporting underlying cost pressures, which emphasise the need to explore new procurement options to improve value for money.
"It has to be acknowledged that associations are not protected from wider economic trends and will be affected by factors beyond their control."
John Bryant, policy officer at the National Housing Federation, agreed that "the decent homes standard, and the substantial programme of works undertaken by many associations", had had an effect on costs.
He added that as average rents had increased by 0.6% on last year, the sector was now providing better value for money.
Source
Housing Today
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