Transforming through cultural and operational change
Rent reductions are forcing real efficiencies on the social housing sector. At the same time, devolution deals are presenting big opportunities for housing associations to deliver social value.
Housing associations need to examine their operating models and question whether they are operating as efficiently as they could be. Focusing on cost cutting or tactical changes alone will not deliver the sustainable improvement needed.
It is too early to foresee the impact of the Brexit vote on the sector in detail. However, there is a real possibility of further rise in demand from the economic downturn and in the longer term, increase in cost of capital, as well as the cost implications of very low gilt yields.
KPMG recently acquired Boxwood Limited a specialist consulting firm in operational transformation. We have begun to work together in the social housing sector. We include in our paper two case studies from their projects in the property sector, which illustrate the returns from increased efficiency and the additional social value that can be generated.